THE DOCTRINE OF STRICT LIABILITY: AN ALTERNATIVE APPROACH TO CONSUMER PROTECTION REGULATION |
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| Authors: | Gregory M Gazda M Jeffery Kallis |
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| Institution: | GREGORY GAZDA is an associate professor of marketing at the University of San Diego. He has published articles in the Journal of Consumer Affairs and the Journal of the Academy of Marketing Science. His specialty is International Business and he has led university students in visits to various multinational companies throughout Europe as part of an International Business Seminar program. He is currently working on a paper which formulates atheory to Consumerism. |
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| Abstract: | Using a legal system of strict liability allowing contributory negligence as a valid defense provides an alternative to consumer protection regulation. In addition, the strict liability system allows rapid and responsive compensation to injured individuals. Corporate uncertainty as to future costs and business environment are substantially reduced, thus allowing firms to make accurate and rational long-term, strategic plans. This paper presents the basic functional constructs required for developing a viable regulatory framework using strict liability and then looks at an example where it could be employed. The scenario deals with an environmental pollution and protection problem. In the example, a strict liability system allowing for a defense of contributory negligence is shown to be conceptually more efficient and desirable than the existing regulatory system and negligence liability procedures. |
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