Critical Thinking in the Legal Environment: Torts and Products Liability.

Critical Thinking in the Legal Environment: Torts and Products Liability.

Whenever the issue of tort reform is being discussed, the infamous case involving McDonald and a burnt customer always comes to mind as a principal example of what is wrong with the American Tort system. The case got a lot of publicity and the term "Stella Award" has been used to refer to any lawsuit that sounds outrageous. This case angered a lot of people and it intensified the debate over tort reform. In order to understand the jury’s decision in this case, it is very important to understand the facts that were presented to them by witnesses and what they considered..

The theatrical and unusualness of the Pearson v. Chung case led many major news outlets to dub the case “The Great American Pants Suit” and Mr. Pearson as “Judge Fancy Pants.” The case got a lot of media coverage and attention in and out of the country and made many people wonder if the American Tort system can ever be fixed because of the increasing cost of litigations.

Knight Ridder Tribune (2007) described the cost of litigation on businesses and the economy as a whole:

The wrangling over Pearson's pants is only the latest in a long line of such lawsuits. America's ‘out-of-control legal system imposes a staggering economic cost of over $865 billion a year’ on business and the economy, according to a study released in March based on figures from 2006 by the Pacific Research Institute, a free-market think tank in San Francisco. That figure includes all costs related to tort law, including administrative and legal fees as well as the cost of lost innovation for businesses. [Also,] PRI found that the United States spends 2.2 percent of gross domestic product on direct tort costs, whereas other advanced countries spend an average of 0.9 percent. This means that more than half of all U.S. tort costs are excessive, if compared with other advanced countries, PRI estimates. When our rivals don't face a constant barrage of...