Assume You Are the Judge in the Palsgraf Case

question 67

Essay

Assume you are the judge in the Palsgraf case.
a. Analyze the fact situation in terms of the elements that need to be proved in a negligence case.
b. Why did Mrs. Palsgraf lose the case? What in the fact situation makes it difficult to establish a prima facie case of negligence?

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Definitions:

Returns to Scale

Describes how output changes in response to a proportional increase in all inputs in the production process; can be classified as increasing, constant, or decreasing.

Consumer Surplus

The gap between the aggregate amount consumers are willing to pay for a good or service and the sum they actually pay.

Producer Surplus

The difference between the amount producers are willing to accept for a good or service relative to its market price, essentially the profit producers make.

Price Discrimination

Price discrimination occurs when a seller charges different prices for the same product or service to different customers, based on the willingness to pay, often to maximize revenue.