LAW AND EMERGING

TECHNOLOGIES
Legal Order and Technological
Innovation
L2
 The legal system as a facilitator
• In relation to business enterprise, economic thought
and technological innovation, the function of law is not
limited to imposing constraints. It also acts as a
facilitator and promoter.
• law does not only sets limits and defines channels
within which an economic activity has to take place but
also provides institutions for fostering its growth.
• the example of property and contract, two legal
institutions can be given here. No business can operate
in absence of these two.
 Other legal institutions meant to
promote technology
• 1. corporations : help in accumulation of
capital for running business.
• 2. IPR : promote technological innovation by
providing incentives.
• IPRs promote progress of science and useful
arts.
• 3. systems of insurance for reducing risks.
 Effects of technology on law
• Lawyers, who, whether as legislators, judges
or practioners, have borne the responsibilities
for designing, adapting and applying the legal
system to the extensive array of changing
circumstances have had to take departure
from previously evolved body of doctrines,
institutions or procedure.
• Side effects of technology which the legal
system had to adapt to and address :
 Effects of technology on law
• 1. injuries suffered by the consumers of a
manufactured product.
• 2. occupational injuries to workers in
workplace.
• 3. environmental injuries to a community or a
region caused by emissions from an industrial
plant
 Effects of technology on law
• Categories of technology induced injuries
under law :
• 1. accident :the questions arises where the
costs (remedy) must ultimately fall.
• 2. wrong :some redress through legal process.
 Constraining effects of law on
technology
• The legal system in its constraining aspects
(i.e. in setting and defining channels for
economic activities )encompasses the general
body of criminal law and tort law; anti-trust
law to regulate competition; the regulation of
banking, investment and the sales of security;
the control on production, distribution and
pricing in such sectors of the economy as
transportation, electric power and light,
communication, mining etc.
 Tort Doctrine of Negligence-interface
with transportation
• Beatty vs. Central Iowa Railway (1882)
• In 1871, the central Iowa railway was built to bring the power and
speed of railroads to Iowa farmlands. The railroad crossed a pre-
existing highway at acute angle. In consequence, the trains ran very
close to the highway. A local farmer, while riding his horse, got
injured because of this. The horse got frightened by the proximity
of the train and went out of control near the intersection. The
farmer filed a case against the company, charging it with negligence
in constructing the railroad. The court, however, ruled against the
farmer despite a contrary opinion of the jury.
• In economic terms the court directed the railway company to pay
the farmer for the injuries. In legal terms, however, it shaped the
tort doctrine of negligence to fit in the scenarios emerging due to
technological advancements.
• It assigned priority to “progress” and “improved transportation”.
 Negligence and Nuisance- interface
with environmental issues
• Rose vs. Socony Vaccume Corp (1934)
• Explicit priority to industrial production over
environment granted by the Supreme Court of
Rhode Island.
• Farmer suffered damage because of leakage of
petroleum from adjacent oil refinery.
• The court held the case to be one involving
damnum absque injuria (harm without a legal
wrong).
 Negligence and Nuisance- interface
with environmental issues
• Morgann vs. High Penn Oil Company
• The alleged culprit was again an oil company, but
the victim was proprietor and operator of a
restaurant. The defendant complained that the
Oil Company emitted nauseating gases. During
the trial the company demonstrated evidence to
prove that it was working in a very efficient
manner.
• However, the North Carolina court held that the
company “unreasonably” caused noxious gases
to escape.
 Negligence and Nuisance- interface
with environmental issues
• The courts have taken different approaches in
in striking the balance between public interest
of protecting farm land, restraint etc vs. the
public interest in refining gasoline.
Strict Liability vs. Absolute Liability
• Rylands vs. Fletcher
• Oleum Gas Leak Case