The requirement for this paper is to analyze, from an economics perspective, a product liability or tort case of your choice. So that you are focusing on a rather recent tort case, the outcome of the case must not have been decided before January 1, 2012. While you have great latitude in which case you choose, you may not choose a case that we have discussed in class, in problem sets, or that is discussed in the text. Most published cases are available from LexisNexis, an electronic database available via SDSU's library. Not handing in the paper on time will result in a zero for this assignment. There are no extensions or exceptions to the due date.

Organization of the Paper

I. Introduction

The first sentence of every paper should cite the case you are analyzing along with the appropriate date of the legal decision. You will attach a copy of the relevant portion of the case to the appendix to your paper. In this section, you should focus on describing the facts of the product liability suit or other tort suit. At a minimum, you should describe the alleged breach of duty by the defendant and the facts surrounding the issue of whether the defendant was the proximate cause of the harm suffered by the plaintiff. This section can be no longer than two double-spaced pages. If there are several parts of the case such as an appellate decision and an original decision, just choose one of these decisions to analyze.

II. The Judicial Outcome

In this section, you will describe the judge's or jury's decision. This should include who won the case, whether damages were awarded, and if damages were awarded, how much. This section should also include a description of the legal rule that the judge used to arrive at the decision. Did the judge use a rule of strict liability in coming to the decision or did he use some form of the negligence rule? This section can be no longer than one double-spaced page.

III. The Economic Analysis

This is the heart of your paper. This section should contain an analysis of whether the judge's (or jury's) decision leads to an economically efficient outcome. One of the key issues is whether the precedent set in the case creates the proper incentives for precaution by other firms in the future. If you believe that the decision does achieve economic efficiency, provide a detailed explanation for this assessment. If you disagree with the decision, outline an alternative ruling that would better meet the goal of economic efficiency. This section can be no longer than three double-spaced pages.

Do not conduct an economic analysis of the legal process (i.e. whether it is efficient to appeal the case). Focus on the economic analysis of the tort case at hand.

Lexis-Nexis Guide

Step 1: Access the University Library home page.

http://library.sdsu.edu/

Step 2: Click on Databases A-Z under Find.

Step 3: Click on L.

Step 4: Click on LexisNexis Academic.

Step 5: On the far left hand side of the page, there is an option labeled US Legal. Click on this and then click on Federal and State cases.

Step 6: Choose any state you desire in the "Jurisdiction" box and "Previous Two Years" in the "Specify Date" box.

Step 7: In the "Search Terms" field, type in any legal terms that you wish to be included in your search for a particular court case.

Step 8: You should now have access to hundreds, if not thousands of court cases. Feel free to select different states and choose a case that is of interest to you.