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Common Sense Legal Reform Act Plank Analysis

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We will be reviewing the plank regarding the Common Sense Legal Reform Act (Feb. 28, 1995) under a model 1 viewpoint. This plank provides “‘Loser pays’ laws, reasonable limits on punitive damages and reform of product liability laws to stem the endless tide of litigation.” From the prospective of an individual from a protective democracy, it may be thought that any governmental policy is automatically in violation of model 1 values, which supports small government and a society of individuals, looking out for only themselves. However, because this policy allows for individuals to further enjoy their rights to maximize their utilities, a model 1 society supports the implication of this Act. Our goal is to allow full freedom to our citizens to …show more content…
This concept states that when buying a product, it is assumed that they purchaser understands the risks that may come with it. Because of this assumption, no one is to be held responsible for “bailing the buyer out” for user error or any mistake on their part. The producers here are focused on maximizing their own utilities, and when a consumer buys their products incorrectly and attempts to extort them for money's their freedoms are being infringed on. This policy allows for producers to continue getting their full payout without the risk of someone trying to wrongfully depend on them for money. The behavior of these consumers has a similar effect to government programs, where we see a diminishing of returns as individuals are becoming reliant on the work and success of other and refuse to work themselves. These people are not contributing to society and are instead hindering others from maximizing their utilities. The Act identifies in more specific detail the ways in which a “product seller” is liable for damages and removes the possibility of suing for “mental distress, loss of consortium, or pain and suffering.” It is stated that a defendant “shall be liable only for the mount of noneconomic damages” in punitive damage cases. These stricter guidelines limit the ability for an individual to sue a producer wrongfully, and requires the damages they are seeking to …show more content…
The Common Sense Legal Reform Act provides a “loser pays” clause outlining a way in which the person who loses the case is required to payout the court and legal fees of their opponent in addition to any damages being sued for. However, it also prevents the loser from overpaying, therefore protecting both parties involved in court proceedings. Sec. 103 of the Act states that when paying there is a limit to “the amount of such damages to three times the amount awarded to the claimant for the economic injury on which such claim is based or $250,000, whichever is greater.” It also identifies “that the liability of each manufacturer or seller of the product involved in the action shall be several only and not joint for non-economic damages. [Making] the manufacturer or seller liable only for the amount of non-economic damages allocated in direct proportion to such manufacturer's or seller's percentage of responsibility as determined by the trier of fact.” This section is crucial, as it allows for winner to have all of their damages and court costs covered (they don’t have to pay due to negligence of their opponent), but still ensures that the person paying will not be cheated out of any of their money; securing the wealth of everyone. Additionally, the idea of “loser pays” works as an incentive to avoid suing a company for something that was not their fault, which allows for the individual

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