Comment: There must be an assumption that a court is reasonable.

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wolfe's picture

There must be an assumption that a court is reasonable.

Or why bother discussing having any law? I do agree that courts are not always just, especially in our system of law. But to have this discussion believing that they aren't, makes it pointless.

All Limited Liability shifts liability from the abuser to the victim (or in some cases tax payer). This IS what creates the moral hazard. Without adequate risk, people are willing to take otherwise unreasonable actions in the pursuit of gain (whether profit, power, or whatever).

LL caps monetary damages. Personhood effectively prevents criminal prosecution. Both create moral hazards in the marketplace. And no, no one should have limited liability. That is a perversion of the markets.

And lastly, bad shit happens to good people. There are cases where I am sure it would create a tragedy. The tragedy of the solution is worse.

Most human designed fixes to problems, create problems worse than what was resolved.

The Philosophy Of Liberty -
http://www.thephilosophyofliberty.com/