Bankruptcy, product liability, and hazardous waste

Journal Article · · Va. J. Nat. Resour. Law; (United States)

OSTI ID:6861870

Sterrett, Jr, S B

Bankruptcy does not serve the goals underlying product liability and hazardous waste laws, which are to discourage accidents and to compensate accident victims. The author contends that changes in the existing priority scheme could improve the situation by encouraging corporation to improve their compliance with product liability and hazardous waste laws. He discusses the efficiency rationale of existing laws, then describes the theoretical rationales for the bankruptcy and secured credit systems. His Superpriority Proposal creates two beneficial effects by subordinating voluntary creditors to involuntary creditors: (1) it reduces the extent to which corporate debtors can externalize actual product costs based on their probability of insolvency, and (2) it provides incentives for voluntary creditors to monitor for debtor misconduct and corporate debtors to reassure and persuade creditors.

• Research Organization: Virginia Journal of Natural Resources Law, Charlottesville
• OSTI ID: 6861870
• Journal Information: Va. J. Nat. Resour. Law; (United States), Journal Name: Va. J. Nat. Resour. Law; (United States) Vol. 6:1; ISSN VJNLD
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
290300* -- Energy Planning & Policy-- Environment
Health
& Safety
CIVIL LIABILITY
CONSUMER PRODUCTS
DOCUMENT TYPES
ECONOMIC IMPACT
ECONOMIC POLICY
GOVERNMENT POLICIES
HAZARDOUS MATERIALS
LAWS
LEGAL ASPECTS
LIABILITIES
MATERIALS
REGULATORY GUIDES
VICTIMS COMPENSATION
WASTE DISPOSAL ACTS