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With an ever-increasing number of liability lawsuits, are
corporations electing to play it safe rather than risk the
uncertainties accompanying innovation? In The Liability Maze
experts address the issues surrounding safety and innovation and
present the most detailed and comprehensive study to date on the
actual impact of U.S. liability law. In recent decades it has been
widely assumed that liability laws promote safety by significantly
raising the price companies must pay for negligence, product
defects and accidents. More recently, others have suggested that
the broad and unpredictable sweep of these laws actually deters
innovation. The risks of lawsuits are so great that corporations
are showing more caution in product innovation than ever before.
The contributors focus on five sectors of the economy where the
liability system appears to have had the greatest effects, positive
or negative: the private aircraft, automobile, chemical, and
pharmaceutical industries, and the medical profession. They suggest
that in many sectors liability law has hampered innovation. In
others it has stimulated safety improvements, although perhaps not
so much as vigilant safety regulations.
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