Product liability contributory negligence

Under the negligence rule, injurers are liable for damages caused by their behavior only if they don t exercise due care, and victims are responsible for other damages. Under strict liability with contributory negligence, the opposite is true injurers are responsible for all damages unless the victims did not exercise due care. Under strict liability, injurers are responsible for all damages their products cause, period. 

Accidents in which care levels of both firms and customers affect damages are called bilateral accidents. Strict liability with contributory negligence will efficiently manage risks in bilateral accidents if customers are aware of the courts due-care standard. Under strict liability with contributory negligence, consumers must engage in precautions that the court determines are cost-effective. The damages that remain after that level of care is taken are the firm s responsibility. This increases product prices and reduces purchases, an important method of accident control (Shavell 1987, 54). 

ShavelTs (1987, 54) defense of strict liability with contributory negligence for products that are purchased is narrower than Landes and Posner s. ShaveU argues, correctly, that aggregate damages will be embedded in product prices. But that can be inefficient if consumers behavior affects the chance of damages and consumers care or activity levels vary. 

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