Question: The workers at a certain firm are exposed to radiation. This exposure can cause birth defects if the workers have children in future years. (If
The workers at a certain firm are exposed to radiation. This exposure can cause birth defects if the workers have children in future years. (If they don't have children, no health problems arise.) Some ex-workers have had children with birth defects and then sued the firm for large sums of money.
a. Under what circumstances, and in what sense, does it not matter how the court rules in these lawsuits?
b. Suppose that after an employee leaves the firm, all contracts between the employee and the firm become unenforceable. Now does it matter how the court rules?
c. Suppose that the firm is considering a policy that requires all employees to be sterilized as a condition of employment. How does this possibility affect your analysis?
d. Suppose that the firm is forbidden by law to adopt the policy described in part (c). How does this affect your analysis?
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a If there are no transactions costs between the employees and the firm then the courts ruling has no effect on the number of children the employees w... View full answer
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