Accidents with trucks carrying hazardous wastes are fairly common. Suppose regulators enact a rule requiring that the perpetrators of such an accident be liable for a sum equal to the average damages of all such accidents in the industry. Would this lead trucking companies to take the socially efficient amount of precaution against such accidents

Question

Romeo Zuniga

Business

14 January, 15:33

Accidents with trucks carrying hazardous wastes are fairly common. Suppose regulators enact a rule requiring that the perpetrators of such an accident be liable for a sum equal to the average damages of all such accidents in the industry. Would this lead trucking companies to take the socially efficient amount of precaution against such accidents

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Answers (1)

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Alejandro Randall · Answer 1

Answer:Yes, it will.

Explanation:

Although there are existing law regulating the companies that transport hazardous materials (both the State law and the Federal law) in the United States of America.

Some States for example, the state of Texas does not allow truck drivers to get a hazardous materials endorsement until the driver has completed a security assessment and obtained TSA clearance.

If there is a law that saction perpetrators of such an accident be liable for a sum of momey equal to the average damages of all such accidents in the industry the company will never want to into loss and they will make sure to take the socially efficient amount of precaution against such accidents.