The chapter that should be currently addressed in the Chapter Nine “Things Fall Apart: Product Liability and Consumers” of the second edition of the book by Joanne B. Ciulla, Clancy Martin, and Robert C. Solomon called Honest Work. So, the main story to be enlarged on is the one called “How We Got into This Mess” by Stanley J. Modic.
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The story focuses on the principles of cooperation and mutual relations that have occurred during recent years between the tort law and the liability insurance system being one of the main reasons for public criticism. The author analyzes the reasons for changes in the liability insurance system and the shift that took place in this system year over year.
Liability insurance system has certain cycles and can face some crises as any other sector of human activity. So, the author claims that crises that took place in the liability insurance system and the tort law including their mutual operation were predictable. These crises brought changes in these systems and shifted the role of a person who is in fault and the injured one.
These changes made both people eligible for getting an insurance payment. Thus, the author gives an example of the industrial objects that are not likely to bear their responsibility for producing something not in accordance with established standards that should be punished in accordance with the criminal law.
Moreover, it is necessary to highlight the problem that appeared in the car-building sector being the main concern for people and creating a nice ground for mass-production of low-quality cars that could be easily damaged resulting in insurance paid to parties concerned.
The cost of the insurance is another important problem that arises from the combination of tort law and liability insurance system. As only people with high income rate could afford purchasing insurance at the beginning, it was impossible for poorer people to buy insurance.
Moreover, the costs that were paid out to the injured party were very low at the beginning which is also the reason for poorer people to have not bought insurances. The changes in the insurance system made it more accessible and enabled poorer people to buy insurances and get costs in case of insured accident.
However, the automobile industry seemed to cooperate with insurance system because cars become less reliable and the bumpers could be easily damaged in an accident. In other words, car manufacturers did not try to make cars more reliable and solid; instead the insurance system made insurances more available. So, people had to buy insurances to avoid expensive repairs after an accident.
People that wanted neither to buy insurance nor to pay costs to the injured party in the case of accident were numerous. To avoid different problems and guarantee the payment of compensation authorities made all people pay insurance premiums.
The premiums were paid in small parts to avoid public criticism. One of the most criticised aspects of the insurance system change is its organisation in accordance with human values, beliefs, and expectations.
Thus, the system that is aimed at ensuring that injured are provided with treatment and the guilty are punished underwent great changes but is expected to decrease its negative influence over the tort system related to accidents and damages that has to guarantee a corresponding punishment for people and corporations in fault.