Economic Analysis of »No-Liability Rule« in Medical Law

Document Type : Original Article

Authors

1 full professor / shahid beheshti university.

2 iran chamber of guild

3 Economic Law, Faculty of Law, Shahid behehshti University

10.52547/jlr.2023.226225.2120

Abstract

The »No-liability rule« is itself part of the »Strict liability rule«. Under the no-liability rule, the injured party bears all the costs of the accident. In this sense, the rule of no-liability means the strict liability of injured party. This rule, due to the holiness and non-commercial nature of the medical profession and existence of certain beliefs, has been a general rule in this field for many years. Over time and the change in society approach to these activities, the responsibility of physicians has been gradually identified and continuously developed. Economic analysis of this rule also shows that the change in the approach of society and the legal system has been consistent with economic efficiency. Applying the no-liability rule in the medical field generally has two very important effects. On the one hand, the level of activity of physicians is above the optimal level and their level of caution is much lower than the optimal level. On the other hand, patients' precautions either have no effect on the incidence of harm, or they have to prevent accidents at a much higher cost than physicians. Therefore, this rule cannot be used as a general rule. However, this rule can work in certain situations. First, the situation in which the patient is alone or the »cheapest Cost-avoider«. Second, the situation the judiciary is in a position to change the precautionary standards. Third, the situation where the administrative costs of enforcing a physician's negligence outweigh the benefits.

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Legal Research Quarterly

Articles in Press, Accepted Manuscript
Available Online from 11 July 2023

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History

  • Receive Date: 26 February 2022
  • Revise Date: 06 February 2023
  • Accept Date: 11 July 2023

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