Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Large damages awards in tort litigation have to be paid by someone. If the defen

ID: 456641 • Letter: L

Question

Large damages awards in tort litigation have to be paid by someone. If the defendant is insured, then the insurance companies foot the bill. Ultimately, though, high insurance rates are passed on to consumers of goods and services in the US. Will tort reform that reduces the size and number of damages awards ultimately mean lower costs of goods and services? Will tort reform lead to higher risks associated with services and products? Large damages awards in tort litigation have to be paid by someone. If the defendant is insured, then the insurance companies foot the bill. Ultimately, though, high insurance rates are passed on to consumers of goods and services in the US. Will tort reform that reduces the size and number of damages awards ultimately mean lower costs of goods and services? Will tort reform lead to higher risks associated with services and products?

Explanation / Answer

Yes, tort reform that reduces the size and number of damages awards ultimately will mean lower costs of goods and services to consumers.

Some services and products can lead to reductions in some risks but increases in other risks.