Question

In: Operations Management

1. Do you believe that any future liability caused from fracking (e.g., from earthquakes) should be...

1. Do you believe that any future liability caused from fracking (e.g., from earthquakes) should be treated as a civil liability or criminal liability? In other words, is the payment of compensation limited by contractual agreement or by statute sufficient to compensate for any future life or property loss? Or do you think additional punitive measures including fines and potential imprisonment for responsible corporate personnel is merited? Explain.

2. If you believe criminal liability is appropriate, what type of standard should be required for such liability? Should a corporation or officer have to be shown as either reckless or negligent? Or should strict liability standards apply?

3. If you believe that criminal liability is appropriate, what types of punishments do you think as being appropriate if there ever is a case where fracking may cause loss of property or life due to an earthquake?

Solutions

Expert Solution

1. In my opinion, any future liability caused from fracking should be treated as criminal liability and not civil liability because such acts require utmost care and attantion and are only to be performed after due safety measures have been taken into account. Any loss of life or property arising out of such acts are criminal in nature and should be dealt strictly. Payment of compensation in such cases is not limited by contractual agreement and the party must compensate for any future life or property loss as well. Yes, in such cases additional punitive measures including fines and potential imprisonment for responsible corporate personnel is merited.

2. In such cases, strict liability standards must apply because it is a serious issue and any loss of life or property arising out of such cases need to be dealt strictly so that such cases do not get repeated in future.

3. Appropriate punishment must involve life imprisonment in most of such cases. In extreme cases where there is a severe damage to property or many lives have been lost, then capital punishment must be provided which ensures death of the persons involved in causing such damages.


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