The local brewery potentially can spill its waste and damage homes down the street. The probability of an accident is .02, with damages of $500,000. Assume additional precautions can be taken to reduce the probability of a spill to .01. What is the most that additional precaution can cost for the brewery to be in violation of the Hand Rule? Show your work and explain your Answer. 6. A. What does it mean for a party to take efficient precaution in the context of a tort? Explain. B. You can never have too much safety. Comment. 7. For a certain class of torts (say, stoves that malfunction and injure people), discuss how litigation costs would be affected by a change from negligence to strict liability. In your answer, I want you to consider both the costs of an individual case as well as total litigation costs for all cases filed. 8. How does the existence of a cap on non-economic damages in medical malpractice cases affect precaution and by whom? What is the justification for a cap? Explain. 9. Assume that the high costs of performing under a contract cause the promisor to breach the contract and pay perfect expectation damages to the promisee. Would the promisee have preferred that the promisor perform? Explain your answer.