Class Action Lawsuits and Lawyers

The same reasoning applies to any torts that deal with injuries whose source was unknown at the time.(9) For such torts, liability costs are indeed inefficient. The Efficiency of the Tort System as a Mechanism for Deterrence In the more typical case of torts that are intended to provide deterrence as well as compensation, economists have not reached a consensus about whether costs are efficient. The tort system may conceivably improve efficiency, despite its high transaction costs, if it is particularly effective in reducing the number and severity of injuries.
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