Liability Allocation and Information Control in Legal Cases

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Explore the concept of foreseeability, liability allocation, and information control in legal cases through examples such as Hadley v. Baxendale and the Flood of 1992. The Best Cost Avoider Approach is analyzed along with scenarios involving contractors, telegraph companies, and movie companies. Understanding the impact of information and control on liability and decision-making is crucial in various situations.


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  1. Foreseeability: Information and Control Richard Warner

  2. Best Cost Avoider Approach Put liability on the person in the best position to take steps to avoid the lost. Requires: Information Control

  3. Hadley v. Baxendale, No Information Conveyed information Control Yes No Hadleys Transportation Co. No Yes

  4. Hadley, Information Conveyed information Control Yes No Hadleys Yes Yes Transportation Co.

  5. Flood of 1992 information Control Yes Yes Contractor Yes No City

  6. Coffee Dealer information Control Yes Yes Telegraph Co. Yes No (?) Sender

  7. Horse Race information Control No (?) Yes Telegraph Co. Yes Yes (?) Sender

  8. Tony information Control Yes No Tony No No (?) Movie Company

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