Reducing Moral Hazard Associated with Implied Warranties of Animal Health
分析法定默示担保中保险条款导致买方不积极减损、产生道德风险的问题，并评估25个州立法豁免的效率，提出部分保险作为替代方案。
Abstract Implied warranties convey information regarding animal health to livestock buyers. Statutory implied warranties also include insurance coverage for a warranty breach which removes buyers' incentive to mitigate possible damages when a warranty is breached. Nonmitigation of damages created the problem of moral hazard, which led livestock sellers to seek legislative exemptions abrogating implied warranties. A theoretical analysis of the possible inefficiencies associated with legislative exemptions adopted by twenty‐five states is provided and partial insurance is suggested as an alternative to the legislative shift in liability.