责任风险（PPT讲稿）The Liability Risk

Ch. 19 The Liability Risk McDonalds Ch7 of 11th Ed.) I was never ruined but twice once when lost a lawsuit and once when i won one Voltaire Here's the liability Boeing faces after Boeing 737 Max 8 plane crash, CNBC, 14 March 2019 Boeing to pay bereaved 737 families $144,500 each BBC, 23 September 2019 7-1

7-1 Ch. 19 The Liability Risk (Ch7 of 11th Ed.) • I was never ruined but twice, once when I lost a lawsuit and once when I won one. – Voltaire • Here's the liability Boeing faces after Boeing 737 Max 8 plane crash, CNBC, 14 March 2019 • Boeing to pay bereaved 737 families $144,500 each BBC, 23 September 2019

The Liability Risk McDonalds McDonald hot coffee oSS exposures: Property VS. Liability Basis of legal liability Law of Negligence Imputed Negligence Res lpsa loquitur Specific Applications of the Law of Negligence Current tort liability problems 7-2

7-2 The Liability Risk • McDonald Hot Coffee • Loss exposures: Property vs. Liability • Basis of legal liability • Law of Negligence – Imputed Negligence – Res Ipsa Loquitur • Specific Applications of the Law of Negligence • Current tort liability problems

Pet- Owner's Liability Risk Shania, age 38, owns three large Rottweiler dogs in a high- crime-rate area in Omaha. Nebraska. She was fined earlier by the city because the dogs often ran free without a lease and frightened the neighbours. One afternoon the dogs escaped from a fenced yard because shania carelessly left the gate open. Without provocation, the dogs viciously attacked a 10-year-old boy who later died from the mauling. The parents of the deceased child sued shania for a wrongful death and were awarded damages of $300,000. Shania could not pay and was forced to declare bankruptcy. Jury awards $16.7 million in candy-choking death Judge awards $50M in candy choking death The killing product 7-3

7-3 Pet-Owner’s Liability Risk • Shania, age 38, owns three large Rottweiler dogs in a high￾crime-rate area in Omaha, Nebraska. She was fined earlier by the city because the dogs often ran free without a lease and frightened the neighbours. One afternoon, the dogs escaped from a fenced yard because Shania carelessly left the gate open. Without provocation, the dogs viciously attacked a 10-year-old boy, who later died from the mauling. The parents of the deceased child sued Shania for a wrongful death and were awarded damages of $300,000. Shania could not pay and was forced to declare bankruptcy. – Jury awards $16.7 million in candy-choking death – Judge awards $50M in candy choking death – The killing product •

The Liability risk: Introduction Shania experienced the legal effects of being negligent in a financially painful manner. Like Shania, other people often face similar liability situations. Drivers are sued for the negligent operation of their vehicles: business firms are sued because of defective products that injure others; physicians attorneys,accountants,engineers,teachers, and other professionals are sued for malpractice negligence, and incompetence. Even government and charitable institutions are often sued today because they no longer enjoy complete immunity from lawsuits Thus, the liability risk is extremely important to people who whish to avoid or minimize potential osses 7-4

7-4 The Liability Risk: Introduction • Shania experienced the legal effects of being negligent in a financially painful manner. Like Shania, other people often face similar liability situations. Drivers are sued for the negligent operation of their vehicles; business firms are sued because of defective products that injure others; physicians, attorneys, accountants, engineers, teachers, and other professionals are sued for malpractice, negligence, and incompetence. Even government and charitable institutions are often sued today because they no longer enjoy complete immunity from lawsuits. Thus, the liability risk is extremely important to people who whish to avoid or minimize potential losses

McDonalds McDonalds Liability Exposures McDonald's hot coffee case A Common Understanding A woman purchased hot coffee at the drive through window of a McDonalds restaurant She spilled the coffee on herself while driving and was burned She sued McDonald's for compensation for her injuries(about $11,000)and was awarded nearly $3 million

Liability Exposures: McDonald’s Hot Coffee Case A Common Understanding • A woman purchased hot coffee at the drive￾through window of a McDonald’s Restaurant. • She spilled the coffee on herself while driving and was burned. • She sued McDonald’s for compensation for her injuries (about $11,000) and was awarded nearly $3 million

Liability Exposures: McDonald's Hot coffee Case A Complete Account of the Facts See the handout McDonalds

• See the handout. Liability Exposures: McDonald’s Hot Coffee Case A Complete Account of the Facts

Liability EXposures Exposures Expenditure of TIME and MONeY Investigate, Negotiate, Defense, Payment Peril? Hazard? 7-7

7-7 Liability Exposures • Exposures – Expenditure of TIME and MONEY – Investigate, Negotiate, Defense, Payment • Peril? • Hazard?

Property Losses v Liability losses Parties Involved Measurement of Exposure Changing Environment Tail 7-8

7-8 Property Losses v. Liability Losses • Parties Involved • Measurement of Exposure • Changing Environment • Tail

Insurance tails Cumulative Percentage of Total losses paid over time for Accidents in Year t 100% 60% 84 Auto Liability Workers'Comp 20% 10 7-9

7-9 Insurance Tails: 0% 20% 40% 60% 80% 100% 1 2 3 4 5 6 7 8 9 10 Year Cumulative % Homeowners Auto Liability Workers' Comp Other Liability Cumulative Percentage of Total Losses Paid Over Time for Accidents in Year t

Basis of Legal Liability A legal wrong is a violation of a person's legal rights, or a failure to perform a legal duty owed to a certain person or to society as a whole egal wrongs include Crime Breach of contract Tort 7-10

7-10 Basis of Legal Liability • A legal wrong is a violation of a person’s legal rights, or a failure to perform a legal duty owed to a certain person or to society as a whole • Legal wrongs include: – Crime – Breach of contract – Tort