• • You believe this is due to very bad visibility exiting the lot into the street, which could likely be solved by the placement of two convex mirrors costing approximately $100 each.
• Proposed Precaution
  • A salesman approached you about installing computerized speed limiters on the engine of each company vehicle, limiting the maximum speed of the vehicle.
  • The proposed maximum speed would be 70 mph.
  • Each of these devices costs approximately $500, plus maintenance.
  • In the last two years, the fastest speed of a company vehicle involved in an accident was 54 mph.

Question 1: Foreach of the two proposed precautionsset forth above:

Please explain whether or not the Hand Formula suggests that you should take the proposed precaution.

• Try to make predictions based on the given information.
• However, if you believe more information is necessary to perform the cost benefit calculation, please state what additional information you would like to have.

Question 2: Foreach of the two potential liability problemsset forth above, provideat leastoneoutside-the-box, creativesolution/precautions and explain how the Hand Formula would apply to your proposed solution/precautions.