In the Case of a Railroad Worker Accident Brought to Court

question 53

Multiple Choice

In the case of a railroad worker accident brought to court in the 1900s, one of the defenses the railroad company used against the plaintiff was the "fellow-servant" doctrine. What does this refer to?

• A)The claims for such incidents are usually settled out-of-court, as between fellows.
• B)The company is not a separate entity above the employee, but a colleague and a caretaker.
• C)The injured employee had assumed responsibility of the risks involved.
• D)The accident is attributed to the negligence of the co-worker.

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Definitions:

Coase Theorem

An economic theory that if trade in an externality is possible and there are no transaction costs, bargaining will lead to an efficient allocation of resources regardless of the initial distribution of property rights.

Liability Rules

Legal principles that dictate how responsibilities and damages are to be handled or compensated in cases of harm or infringement.

Bargaining

The process of negotiating the terms of a transaction or agreement between parties, often involving compromises from the initial positions.

Property Rights

The legal rights to possess, use, and dispose of assets including real property, personal property, and intellectual property.