Private Product-Risk Assessment and the Role of Government

Abstract:     
Compares public risk assessment and private risk assessments conducted companies before placing new products on the market. Concludes companies are driven by a value of information approach and wish to avoid competitive disadvantage, not necessarily to minimize liability. Compares inventives for private and governmental risk assessments. Considers whether government should regulate pre-introduction due diligence for products by analogy to ASTM standards and EPA's "all appropriate inquiry" rule for pre-purchase due diligence of real property by creating safe harbors against punitive damages.

Number of Pages in PDF File: 11

Keywords: Product Liability, Due Diligence, Risk Assessment, Punitive Damages

JEL Classification: D81, K13, K20

Accepted Paper Series