Prior to the Enactment of Workers' Compensation Statutes, What Defenses

question 23

Essay

Prior to the enactment of workers' compensation statutes, what defenses would employers use in order to avoid paying for employee injuries?

---

Definitions:

Debenture Bonds

Financial securities issued by a company that are backed only by the issuer's creditworthiness and general reputation, not by physical assets.

Effective-Interest Method

A method of computing the amortized cost of a bond and of allocating interest expense over its relevant period.

Operating Lease

A lease agreement that allows for the use of an asset but does not convey rights of ownership to the lessee.

Capital Lease

A leasing arrangement that is treated like an asset purchase for accounting purposes, where the lessee records the leased asset as if it has been purchased.