United States v. Carroll Towing Co.

United States v. Carroll Towing Co. (1947) is a legal case that established the "strict liability" standard for negligence. The court introduced the "Hand formula," which assesses if a party acted reasonably by weighing the burden of precautions (B) against the probability and severity of harm (PL). If the burden of prevention is less than the expected loss (B < PL), then failing to take precautions is considered negligent. This framework helps determine liability by balancing the costs of safety measures against potential risks, promoting more consistent and economically rational decision-making in safety practices.