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In
tort law A tort, in common law In law, common law (also known as judicial precedent or judge-made law, or case law) is the body of law created by judges and similar quasi-judicial tribunals by virtue of being stated in written opinions. ''Black's Law ...

tort law
, a duty of care is a
legal Law is a system A system is a group of interacting Interaction is a kind of action that occurs as two or more objects have an effect upon one another. The idea of a two-way effect is essential in the concept of interaction, as oppose ...
obligation An obligation is a course of action that someone is required to take, whether legal Law is a system A system is a group of Interaction, interacting or interrelated elements that act according to a set of rules to form a unified whole. A s ...
which is imposed on an individual, requiring adherence to a
standard Standard may refer to: Flags * Colours, standards and guidons * Standard (flag), a type of flag used for personal identification Norm, convention or requirement * Standard (metrology), an object that bears a defined relationship to a unit of ...
of reasonable care while performing any acts that could foreseeably harm others. It is the first element that must be established to proceed with an action in
negligence Negligence (Lat. ''negligentia'') is a failure to exercise appropriate and/or ethical ruled care expected to be exercised amongst specified circumstances. The area of tort A tort, in common law jurisdiction, is a civil wrong (other than br ...

negligence
. The claimant must be able to show a duty of care imposed by law which the defendant has breached. In turn, breaching a
duty A duty (from "due" meaning "that which is owing"; fro, deu, did, past participle of ''devoir''; la, debere, debitum, whence "debt Debt is an obligation that requires one party, the debtor A debtor or debitor is a legal entity (legal ...

duty
may subject an individual to liability. The duty of care may be imposed ''by
operation of law The phrase "by operation of law" is a legal term that indicates that a right or liability has been created for a party, irrespective of the intent of that party, because it is dictated by existing legal principles. For example, if a person dies with ...
'' between individuals who have no ''current'' direct relationship (familial or contractual or otherwise) but eventually become related in some manner, as defined by
common law In law, common law (also known as judicial precedent or judge-made law, or case law Case law is the collection of past legal decisions written by courts and similar tribunal A tribunal, generally, is any person or institution with authority ...
(meaning case law). Duty of care may be considered a formalisation of the
social contract In moral A moral (from Latin Latin (, or , ) is a classical language belonging to the Italic languages, Italic branch of the Indo-European languages. Latin was originally spoken in the area around Rome, known as Latium. Through the power ...
, the implicit responsibilities held by individuals towards others within
society A society is a group A group is a number A number is a mathematical object used to counting, count, measurement, measure, and nominal number, label. The original examples are the natural numbers 1, 2, 3, 4, and so forth. Numbers can be ...

society
. It is not a requirement that a duty of care be defined by law, though it will often develop through the
jurisprudence Jurisprudence, or legal theory, is the theoretical study of the propriety of law Law is a system A system is a group of Interaction, interacting or interrelated elements that act according to a set of rules to form a unified whol ...
of
common law In law, common law (also known as judicial precedent or judge-made law, or case law Case law is the collection of past legal decisions written by courts and similar tribunal A tribunal, generally, is any person or institution with authority ...
.


Development of the ''general'' duty of care

At common law, duties were formerly limited to those with whom one was in
privity Privity is the legal term for a close, mutual, or successive relationship to the same right of property or the power to enforce a promise or warranty. It is an important concept in Privity of contract, contract law. Contract law {{main article, Pri ...
one way or another, as exemplified by cases like ''
Winterbottom v. Wright ''Winterbottom v Wright'' (184210 M&W 109was an important case in English common law responsible for constraining the law's 19th-century stance on negligence. Facts The plaintiff Winterbottom had been contract A contract is a legally binding ...
'' (1842). In the early 20th century, judges began to recognize that the cold realities of the
Second Industrial Revolution The Second Industrial Revolution, also known as the Technological Revolution, was a phase of rapid standardization Standardization or standardisation is the process of implementing and developing technical standards based on the consensus ...
(in which end users were frequently several parties removed from the original manufacturer) implied that enforcing the privity requirement against hapless consumers had harsh results in many
product liability Product liability is the area of law Law is a system A system is a group of Interaction, interacting or interrelated elements that act according to a set of rules to form a unified whole. A system, surrounded and influenced by its envir ...
cases. The idea of a general duty of care that runs to all who could be foreseeably affected by one's conduct (accompanied by the demolishing of the privity barrier) first appeared in the judgment of William Brett (later Lord Esher),
Master of the Rolls The Keeper or Master of the Rolls and Records of the Chancery of England, known as the Master of the Rolls, is the President of the Civil Division of the Court of Appeal of England and Wales The Court of Appeal (formally "Her Majesty's Cou ...
, in ''
Heaven v Pender ''Heaven v Pender'' (1883) (11 QBD 503, Court of Appeal of England and Wales, Court of Appeal) was an English tort law case, which foreshadowed the birth of the modern law of negligence. Facts Pender was the owner of a dry dock used for ship wor ...
'' (1883). Although Brett's formulation was rejected by the rest of the court, similar formulations later appeared in the landmark U.S. case of '' MacPherson v. Buick Motor Co.'' (1916) and, in the UK, in ''
Donoghue v Stevenson was a landmark court decision in Scots delict lawDelicts in Scots Law are Civil wrong, civil wrongs which are actionable in Scottish courts. The equivalent term in English law and other common law jurisdictions is known as tort law. The most di ...
'' (1932). Both ''MacPherson'' and ''Donoghue'' were product liability cases, and both expressly acknowledged and cited Brett's analysis as their inspiration.


Scope

Although the duty of care is easiest to understand in contexts like simple
blunt trauma Blunt may refer to: * Blunt (surname)Blunt is a common surname of English language, English derivation, meaning "blonde, fair" (Old French ''blund''), or "dull" (Middle English ''blunt, blont'').*''Dictionary of American Family Names'', Oxford Uni ...
, it is important to understand that the duty can be still found in situations where plaintiffs and defendants may be separated by vast distances of space and time. For instance, an engineer or construction company involved in erecting a building may be reasonably responsible to tenants inhabiting the building many years in the future. This point is illustrated by the decision of the
South Carolina Supreme Court The South Carolina Supreme Court is the highest court in the U.S. state of South Carolina. The court is composed of a Chief Justice and four Associate Justices.
in ''Terlinde v. Neely'' 275 S.C. 395, 271 S.E.2d 768 (1980), later cited by the
Supreme Court of Canada Supreme may refer to: * Supreme (brand), a clothing brand based in New York * Supreme (comics), a comic book superhero * Supreme (cookery), a term used in cookery * Supreme (film), ''Supreme'' (film), a 2016 Telugu film * Supreme (producer), hip-h ...

Supreme Court of Canada
in ''Winnipeg Condominium Corporation No. 36 v. Bird Construction Co.'' 9951 S.C.R. 85:


Responsibility

Although the idea of a general duty of care is now widely accepted, there are significant differences among the
common law In law, common law (also known as judicial precedent or judge-made law, or case law Case law is the collection of past legal decisions written by courts and similar tribunal A tribunal, generally, is any person or institution with authority ...
jurisdictions concerning the specific circumstances under which that duty of care exists. Obviously, courts cannot impose unlimited liability and hold everyone liable for everyone else's problems; as
Justice Cardozo
Justice Cardozo
put it, to rule otherwise would be to expose defendants "to a liability in an indeterminate amount for an indeterminate time to an indeterminate class." There must be some reasonable limit to the duty of care; the problem is where to set that limit.


England

Whether a duty of care exists depends firstly on whether there is an analogous case in which the Courts have previously held there to exist (or not exist) a duty of care. Situations in which a duty of care have previously been held to exist include doctor and patient, manufacturer and consumer, and surveyor and mortgagor. Accordingly, if there is an analogous case on duty of care, the court will simply apply that case to the facts of the new case without asking itself any normative questions. If there is no similar case that the court will determine whether there is a duty of care by applying the three normative criteria the
House of Lords The House of Lords, formally The Right Honourable the Lords Spiritual and Temporal of the United Kingdom of Great Britain and Northern Ireland in Parliament assembled, is the of the . Membership is by , or . Like the , it meets in the . ar ...

House of Lords
set out in '' Caparo Industries plc v Dickman''. The criteria are as follows: * Harm must be a "reasonably foreseeable" result of the defendant's conduct;. * A relationship of "proximity" must exist between the defendant and the claimant; * It must be "fair, just and reasonable" to impose liability.


European Union


Australia

The High Court of Australia has deviated from the British approach, which still recognises a proximity element. Rather, Australian law first determines whether the case at hand fits within an established category of case where a duty of care has been found.. For example, occupiers of a premises automatically owe a duty of care to any person on their premises.. If this is not the case, then the plaintiff must prove that it was reasonably foreseeable that harm could result from the defendant's actions. If so, the Court then applies a 'salient features' test to determine whether the plaintiff is owed a duty of care. Some of the salient features which the Court considers in making this inquiry include: # Whether imposition of a duty of care would lead to 'indeterminate liability' – that is, it would interfere with the legitimate protection or pursuit of an individual's social or business interests. # Whether imposition of a duty would constitute an unreasonable burden on individual autonomy. # The degree of vulnerability of the plaintiff to the defendant's actions – their ability to guard against the harm. # The degree of knowledge which the defendant had about the probability and likely magnitude of harm to the plaintiff. Special rules exist for the establishment of duty of care where the plaintiff suffered mental harm, or where the defendant is a public authority. To establish a duty of care, the plaintiff has to satisfy the requirement of CLA Act ss 27–33. In light of this, a large number of individuals cannot claim injuries as well. Meanwhile, compared to the ‘No-Fault Compensation’ system in New Zealand, the cost to claim injuries is much higher. In light of this, individuals especially the victims who lack knowledge or capability may choose not claim private nuisance after balancing the burden and outcomes. This view affirmed by Regina Graycar, he states that the courts in Australia are reluctant to award damages for personal injuries. In New South Wales, a plaintiff is able to recover for non-economic loss, including pain and suffering, loss of amenities/expectation of life and disfigurement, upon the severity of the loss being at least 15% of 'most extreme case'. As of October 2016, NSW Attorney General, Gabrielle Upton, has updated the maximum amount of damages for non-economic loss from $594,000 to $605,000.


France

On 27 March 2017, the French
National Assembly In politics, a national assembly is either a unicameral In government, unicameralism (Latin , "one" and , "chamber") is the practice of having a single legislative or legislative chamber, parliamentary chamber. Thus, a ''unicameral parliam ...
adopted a law entitled “Devoir de vigilance des entreprises donneuses d'ordre”, whose title has been translated into English as a "duty of vigilance" or "duty of care".Ethical Trading Initiative
France adopts new corporate “duty of care” law
1 March 2017, accessed 7 April 2017
The law will oblige large French companies (companies with at least 5,000 staff in France or 10,000 staff within their combined French and foreign offices over two consecutive years) to: :"Establish and implement a diligence plan which should state the measures taken to identify and prevent the occurrence of human rights and environmental risks resulting from their activities, the activities of companies they control and the activities of
sub-contractor A subcontractor is an individual or (in many cases) a business that signs a contract to perform part or all of the obligations of another's contract. A subcontractor (or sub-contractor) is a company or person whom a general contractor, prime con ...
s and suppliers on whom they have a significant influence."


Sweden

Sweden Sweden ( sv, Sverige ), officially the Kingdom of Sweden ( sv, links=no, Konungariket Sverige ), is a Nordic country The Nordic countries, or the Nordics, are a geographical and cultural region In geography, regions are areas that ...

Sweden
does not have such a law.


Switzerland

In
Switzerland , french: Suisse(sse), it, svizzero/svizzera or , rm, Svizzer/Svizra , government_type = Federalism, Federal semi-direct democracy under an assembly-independent Directorial system, directorial republic , leader_title1 = Fe ...

Switzerland
, a
federal popular initiative A 'popular initiative' (German: ''Volksinitiative'', French ''Initiative populaire'', Italian ''Iniziativa popolare'', Romansh ''Iniziativa dal pievel'') allows the people to suggest law in Switzerland ,german: Schweizer(in),french: Suisse( ...
named 'For responsible businesses – protecting human rights and the environment' was launched by a coalition of
non-governmental organization A non-governmental organization, or simply an NGO, is an organization An organization, or organisation (Commonwealth English The use of the English language English is a of the , originally spoken by the inhabitants of ...
s. It proposed a mechanism of
public liability Public liability is part of the law of tort which focuses on civil wrongs. An applicant (the injured party) usually sues the respondent (the owner or occupier) under common law based on negligence and/or damages. Claims are usually successful whe ...
when activities of Swiss multinationals, or their subsidiaries, violate internationally recognised
human rights Human rights are moral A moral (from Latin Latin (, or , ) is a classical language belonging to the Italic languages, Italic branch of the Indo-European languages. Latin was originally spoken in the area around Rome, known as Latium. ...
and environmental standards.Popular Initiative ‘For responsible businesses – protecting human rights and the environment’
official website of the
Swiss government The Federal Council (german: Bundesrat, french: Conseil fédéral, it, Consiglio federale, rm, Cussegl federal) is the seven-member executive council that constitutes the federal government of the Switzerland, Swiss Confederation and serves as ...
, 2020 (page visited on 30 November 2020).
On 29 November 2020, the responsible business initiative was accepted by 51% of voters, but rejected by a majority of
cantons A canton is a type of administrative division of a country. In general, cantons are relatively small in terms of area and population when compared with other administrative divisions such as county, counties, Department (administrative division), ...
. The failure of the initiative leads to the entry into force of the legislative counter-project. The latter also introduces new
due diligence Due diligence is the investigation or exercise of care that a reasonable business or person is normally expected to take before entering into an agreement or contract with another party or an act with a certain standard of care Standard may re ...
obligations. Criminal fines can be imposed for failure to report (but nor for breaches of international law).


United States

Because each of the 50
U.S. state In the United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country Continental United States, primarily located in North America. It consists of 50 U.S. state ...
s is a separate
sovereign Sovereign is a title which can be applied to the highest leader in various categories. The word is borrowed from Old French ''souverain'', which is ultimately derived from the Latin word ''superānus'', meaning "above". The roles of a sovereign v ...
free to develop its own tort law under the Tenth Amendment, there are several tests for finding a duty of care in
United States tort lawThis article addresses torts in United States law. As such, it covers primarily common law. Moreover, it provides general rules, as individual states all have separate civil code A civil code is a codification of private law relating to property l ...
.


Foreseeability test

In several states, like
Florida Florida is a U.S. state, state located in the Southeastern United States, Southeastern region of the United States. Florida is bordered to the west by the Gulf of Mexico, to the northwest by Alabama, to the north by Georgia (U.S. state), Geor ...

Florida
and
Massachusetts Massachusetts (, ), officially the Commonwealth of Massachusetts, is the most populous state State may refer to: Arts, entertainment, and media Literature * ''State Magazine'', a monthly magazine published by the U.S. Department of State * ...

Massachusetts
, the sole test is whether the harm to the plaintiff from the defendant's actions was foreseeable.


Multi-factor test

The
Supreme Court of California The Supreme Court of California is the highest and final court of appeals in the courts A court is any person or institution, often as a government A government is the system or group of people governing an organized community, g ...
, in a
majority opinion In law Law is a system A system is a group of Interaction, interacting or interrelated elements that act according to a set of rules to form a unified whole. A system, surrounded and influenced by its environment, is described by its bo ...
by Justice
David Eagleson David Newton Eagleson (October 4, 1924 – May 23, 2003) was an American lawyer who served as an Associate Justice of the Supreme Court of California from 1987 to 1991. Biography Eagleson was born in Los Angeles, California, and educated in the pu ...
, criticized the idea that foreseeability, standing alone, constitutes an adequate basis on which to rest the duty of care: "Experience has shown that . . . there are clear judicial days on which a court can foresee forever and thus determine liability but none on which that foresight alone provides a socially and judicially acceptable limit on recovery of damages." Drawing upon the work of scholars such as Fowler V. Harper, Fleming James Jr., and William Prosser,
California California is a state State may refer to: Arts, entertainment, and media Literature * ''State Magazine'', a monthly magazine published by the U.S. Department of State * The State (newspaper), ''The State'' (newspaper), a daily newspaper i ...

California
has developed a complicated
balancing test A balancing test is any judicial test in which the jurists weigh the importance of multiple factors in a legal case. Proponents of such tests argue that they allow a deeper consideration of complex issues than a bright line rule can allow. ...
consisting of multiple factors which must be carefully weighed against one another to determine whether a duty of care exists in a negligence action.
California Civil CodeThe Civil Code of California is a collection of statuteA statute reffers to the body of law that are made by legislature of the nation with instrument which govern the state, country or any nation. it includes laws, rules and the reulation whichhas t ...
section 1714 imposes a general duty of ordinary care, which by default requires all persons to take reasonable measures to prevent harm to others.Cabral v. Ralph
51 Cal.4th 764
(2011)
In the 1968 case of '' Rowland v. Christian'', the court held that judicial exceptions to this general duty of care should only be created if clearly justified based on the following public-policy factors: *the foreseeability of harm to the injured party; *the degree of certainty he or she suffered injury; *the closeness of the connection between the defendant's conduct and the injury suffered; *the moral blame attached to the defendant's conduct; *the policy of preventing future harm; *the extent of the burden to the defendant and the consequences to the community of imposing a duty of care with resulting liability for breach; *and the availability, cost, and prevalence of insurance for the risk involved.''Rowland v. Christian''
69 Cal. 2d 108
(1968).
A 1997 case added to this: *the social utility of the defendant's conduct from which the injury arose. Contemporary California appellate decisions treat the ''Rowland'' decision as the "gold standard" for determining the existence of a legal duty of care, and generally refer to the criteria for determining the existence of a legal duty of care as the ''Rowland'' factors. In California, the duty inquiry focuses on the general category of conduct at issue and the range of foreseeable harm it creates, rather than the specific actions or injuries in each case. Appellate lawyer persuaded the California Supreme Court to clarify the central importance of this distinction with its 2011 decision in ''Cabral v. Ralphs Grocery Co''. which requires "no duty" rulings to be based on categorical public-policy rules that can be applied to a range of cases, without reference to detailed facts. By requiring courts to apply the ''Rowland'' factors at this high level of factual generality, the ''Cabral'' decision preserved the role of juries in determining whether the defendant breached its duty of care based on the unique circumstances of each case. A majority of U.S. states have adopted some kind of multi-factor analysis based on the work of Prosser and others. Some states simply copied California's factors but modified them, like
Michigan Michigan () is a state State may refer to: Arts, entertainment, and media Literature * ''State Magazine'', a monthly magazine published by the U.S. Department of State * The State (newspaper), ''The State'' (newspaper), a daily newspaper ...

Michigan
(which deleted the insurance factor and never picked up the social utility factor), while others developed different lists of factors, such as this one from
Tennessee Tennessee (, ), officially the State of Tennessee, is a state State may refer to: Arts, entertainment, and media Literature * ''State Magazine'', a monthly magazine published by the U.S. Department of State * The State (newspaper), ''The S ...

Tennessee
: *the foreseeability of the harm or injury; *the possible magnitude of the potential harm or injury; *the importance or social value of the activity engaged in by the defendant; *the usefulness of the conduct to the defendant; *the feasibility of alternative conduct; *the costs and burdens associated with the alternative conduct; *the relative usefulness of the alternative conduct; *and the relative safety of the alternative conduct. A 2011 law review article identified 43 states that use a multifactor analysis in 23 various incarnations; consolidating them together results in a list of 42 different factors used by U.S. courts to determine whether a duty of care exists. The Tennessee Court of Appeal has also recently followed the California Supreme Court's lead by citing ''Cabral'' for the proposition that duty determinations must be made at the highest level of factual generality.


Measurement

Once a duty exists, the plaintiff must show that the defendant ''breached'' it. This is generally treated as the second element of negligence in the United States. Breach involves testing the defendant's actions against the standard of a ''reasonable person'', which varies depending on the facts of the case. For example,
physician A physician (American English), medical practitioner (English in the Commonwealth of Nations, Commonwealth English), medical doctor, or simply doctor, is a professional who practices medicine, which is concerned with promoting, maintainin ...

physician
s will be held to reasonable standards for members of their profession, rather than those of the general public, in negligence actions for
medical malpractice Medical malpractice In the law of torts, malpractice, also known as professional negligence, is an "instance of negligence or incompetence on the part of a professional".Malpractice definition, Professionals who may become the subject of ...
. In turn, once the appropriate standard has been found, the ''breach'' is proven when the plaintiff shows that the defendant's conduct fell below or did not reach the relevant standard of reasonable care. However, it is possible that the defendant took every possible precaution and ''exceeded'' what would have been done by any reasonable person, yet the plaintiff was injured. If that is the case, then as a matter of law, the duty of care has not been breached and the plaintiff cannot recover in negligence. This is the key difference between negligence and
strict liability In criminal In ordinary language, a crime is an unlawful act punishable by a state State may refer to: Arts, entertainment, and media Literature * ''State Magazine'', a monthly magazine published by the U.S. Department of State * The S ...
; if strict liability attaches to the defendant's conduct, then the plaintiff can recover under that theory regardless of whatever precautions were taken by the defendant.


Examples


Products

Product liability was the context in which the general duty of care first developed. Manufacturers owe a duty of care to consumers who ultimately purchase and use the products. In the case of ''
Donoghue v Stevenson was a landmark court decision in Scots delict lawDelicts in Scots Law are Civil wrong, civil wrongs which are actionable in Scottish courts. The equivalent term in English law and other common law jurisdictions is known as tort law. The most di ...
''
932 Year 932 ( CMXXXII) was a leap year starting on Sunday A leap year starting on Sunday is any year with 366 days (i.e. it includes 29 February) that begins on Sunday, 1 January, and ends on Monday, 31 December. Its dominical letters hence are AG ...
AC 562 of the House of Lords,
Lord Atkin Lord Atkin James Richard Atkin, Baron Atkin, (28 November 1867 – 25 June 1944), commonly known as Dick Atkin, was a lawyer and judge of Irish, Welsh and Australian origin, who practised in England and Wales England and Wales () is a legal jur ...
stated:


Land

At common law, in the case of landowners, the extent of their duty of care to those who came on their premises varied depending on whether a person was classified as a
trespasser In the law of tort, property Property (''latin: Res Privata'') in the Abstract and concrete, abstract is what belongs to or with something, whether as an attribute or as a component of said thing. In the context of this article, it is on ...
,
licensee A licensee can mean the holder of a license A license (American English American English (AmE, AE, AmEng, USEng, en-US), sometimes called United States English or U.S. English, is the set of varieties of the English language native to ...
, or
invitee In the law of torts, an invitee is a person who is invited to land by the possessor of the land as a member of the public or one who enters the land of another for the purpose of business dealings with the possessor of the land. The status of a v ...
. This rule was eventually abolished in some common law jurisdictions. For example, England enacted the Occupiers Liability Act 1957. Similarly, in the 1968 landmark case of '' Rowland v. Christian'', the
Supreme Court of California The Supreme Court of California is the highest and final court of appeals in the courts A court is any person or institution, often as a government A government is the system or group of people governing an organized community, g ...
replaced the old classifications with a general duty of care to ''all'' persons on one's land, regardless of their status. After several highly publicized and controversial cases, the
California Legislature California State Senate chamber The California State Legislature is a bicameral Bicameralism is the practice of having a legislature divided into two separate Deliberative assembly, assemblies, chambers, or houses, known as a bicameral l ...
enacted a statute in 1985 that partially restored immunity to landowners from some types of lawsuits from trespassers. Colorado's highest court adopted the ''Rowland'' unified duty of care analysis in 1971. The resulting explosion of lawsuits against Colorado landowners caused the state legislature to enact the Colorado Premises Liability Act in 1986, which enacted a cleaned-up statutory version of the common law classifications ''and'' simultaneously expressly displaced all common law remedies against landowners in order to prevent state courts from again expanding their liability. In the
Republic of Ireland Ireland ( ga, Éire ), also known as the Republic of Ireland ('), is a country A country is a distinct territorial body or political entity A polity is an identifiable political entity—any group of people who have a collective id ...

Republic of Ireland
, under the Occupiers' Liability Act, 1995, the duty of care to trespassers, visitors and "recreational users" can be restricted by the occupier; provided reasonable notice is given, for which a prominent notice at the usual entrance to the premises usually suffices.


Business

In business, "the duty of care addresses the attentiveness and prudence of managers in performing their decision-making and supervisory functions."Alan R. Palmiter, ''Corporations: Examples and Explanations'', 5th ed. (New York: Aspen Publishers, 2006), 192. The "business judgment rule presumes that directors (and officers) carry out their functions in
good faith Good faith ( la, bona fides), in human interactions, is a sincere intention to be fair, open, and honest, regardless of the outcome of the interaction. While some Latin phrases have lost their literal meaning over centuries, this is not the cas ...
, after sufficient investigation, and for acceptable reasons. Unless this presumption is overcome, courts abstain from second-guessing well-meaning business decisions even when they are flops. This is a risk that shareholders take when they make a corporate investment." The Duty of Care Risk Analysis Standard (DoCRA) provides principles and practices for evaluating risk. It considers all parties that could be affected by those risks. DoCRA evaluates safeguards if they are appropriate in protecting others from harm while presenting a reasonable burden by defining what is reasonable risk. It helps establish reasonable security based on an organization's specific mission, objective, and obligations.
The Sedona Conference (TSC)
a nonpartisan, nonprofit 501(c)(3) research and educational institute dedicated to the advanced study of law and policy in the areas of antitrust law, complex litigation, intellectual property rights, and data security and privacy law, released its
Commentary on a Reasonable Security Test
'' The commentary provides the legal community a clear definition of a “reasonable” security control.


See also

*
Due diligence Due diligence is the investigation or exercise of care that a reasonable business or person is normally expected to take before entering into an agreement or contract with another party or an act with a certain standard of care Standard may re ...
*
Standard of care In tort law A tort, in common law In law, common law (also known as judicial precedent or judge-made law, or case law) is the body of law created by judges and similar quasi-judicial tribunals by virtue of being stated in written opinions ...


References

{{authority control Tort law Legal doctrines and principles