IDEAS home Printed from https://ideas.repec.org/a/oup/ajagec/v69y1987i1p143-150..html
   My bibliography  Save this article

Reducing Moral Hazard Associated with Implied Warranties of Animal Health

Author

Listed:
  • Terence J. Centner
  • Michael E. Wetzstein

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.

Suggested Citation

  • Terence J. Centner & Michael E. Wetzstein, 1987. "Reducing Moral Hazard Associated with Implied Warranties of Animal Health," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(1), pages 143-150.
    • Handle: RePEc:oup:ajagec:v:69:y:1987:i:1:p:143-150.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.2307/1241315
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jill E. Hobbs & William A. Kerr, 1992. "Costs of monitoring food safety and vertical coordination in agribusiness: What can be learned from the British Food Safety Act 1990?," Agribusiness, John Wiley & Sons, Ltd., vol. 8(6), pages 575-584.
    2. Rat-Aspert, Olivier & Weldegebriel, Habtu T. & Stott, Alistair W. & Fourichon, C., 2008. "Managing animal health status information in the cattle market," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44064, European Association of Agricultural Economists.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:ajagec:v:69:y:1987:i:1:p:143-150.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.