Unlimited liability

Options can thus be likened to a form of insurance taken out against adverse price movements. For this right, the option buyer pays a one-ofif, non-refundable fee (or premium) to the seller (or writer) of the option. The premium is the extent of the buyer s liability in relation to the option. The option writer, in contrast, is exposed to unlimited liability he must be prepared to make or take delivery at the agreed price, whatever may have happened to the market price in the interim period. 

Silets HL (1987) Something special in the air and on the ground the potential for unlimited liability of intemational air carriers for terrorist attacks under the Warsaw convention and its revisions. JALC 53 321 at 358... 

Risks for rarely occurring events provide business for the Lloyd s Syndicate of London. Lloyd s is a consortium of wealthy investors who agree to back insurance contracts with their entire personal fortunes (unlimited hability) for such events as the loss of an opera singer s voice or an oil-tanker catastrophe. Lloyd s was a primary purchaser of corporate environmental liability reinsurance contracts, but it suffered many losses on those contracts and was forced to restructure itself in 1993, ending its 300-year history of unlimited personal liability (Raphael 1995). 

An absolute price floor in the EU ETS could be established if a government institution agreed to purchase an unlimited number of permits at a fixed price. If sellers are guaranteed this floor price by selling to the government, the market price will not fall below the floor. Treasuries, however, are typically reluctant to sign up to such financial liabilities. 

It is not reasonable to make the producer liable for an unlimited period for the defectiveness of a product therefore, liability should expire after a reasonable length of time, without prejudice to pending claims. Member states shall provide a limitation of three years for the recovery of damages, which begins to run from the day on which the plaintiff became aware, or should reasonably have become aware, of the damage, of the defect, and of the identity of the producer. 

Section 85 of the Water Resources Act 1991 makes it an offence to cause or knowingly permit the pollution of waters. This offence is normally prosecuted under the cause category as this is an offence of strict liability and requires only proof that the offence occurred and the defendant caused it. The penalty can be 6 months imprisonment or a fine of up to 20 000 in the magistrates court or 2 years imprisonment or an unlimited fine in the Crown Court. 

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