THE ACTIVITY-RISK THEORY OF TORT: RISK, INSURANCE AND INSOLVENCY
AbstractIn this article the author examines tort law and the problems associated with compensating victims injured by the activity of others. Through a discussion of various tort situations he suggests several guiding principles for handling tort liability. Most notably, he recommends an activity-risk theory that has as its basic proposition the notion that activity should bear the risks of harm which that activity produces. He also suggests that in developing principles of tort liability, the prospect of insolvency should be guarded against and insurance should be accompanied by premium assessments for risk-increasing conduct. The author then suggests that where the activity is general or where the potential victims voluntarily enter the area of risk, the loss should be left where it falls. In concluding his discussion the author illustrates the practicality of his theory through an application of the principles to automobile travel.
Keywords:Insurance Law, Torts
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