1) The hand rule can be used to put a value on life using the formula:
a) L=B/P
b) L=BxP
c) L=BxP^2
d) L=B^2xP
e) none of the above
2) In determining punitive damages, the efficient formula for liability damages should be:
a) L=AxE/M
b) L=ExM/A
c) L=E/(MxA)
d) L=AxExM
e) none of the above
3) In contract law, the theory of the bargain principle refers to "consideration" as
a) Variable enforcement
b) Acceptance
c) Offer
d) Bounded return
e) Reciprocal inducement
4) Possible solutions to the possibility of firms filing for bankruptcy to avoid liability are:
a) voluntary insurance
b) posting performance bonds
c) ex post regulation
d) None of the above
5) Which of the following is not an asymmetric information problem?
a) culpa in contrahendo
b) mutual mistake
c) frustration of purpose
d) fraud
e) respondeat superior