• Froyn@kbin.social
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    1 year ago

    Oh no, a new “cost of doing business” has been established. Honestly, what’s the point of the jail time here? We have never put a company (even though we’ve granted them personhood) in jail.

    • KoboldCoterie@pawb.social
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      1 year ago

      Fines are fine penalties for businesses, but they’re always far too small.

      Start with an amount that is 2-3x higher than the potential gain from doing the thing. Let’s say that’s $100,000, just for the sake of discussion.

      Divide that by the chance of a given instance of the crime being caught / reported, and successfully prosecuted. Let’s say that chance is 0.01% (1 in 10,000 instances) - I think this is a very low estimate, but again, just for the sake of discussion. We’re now sitting at $10,000,000 per instance.

      Add a deterrent increase - let’s say 100%, so $20,000,000 per instance.

      We’ve all seen Fight Club, I’m sure:

      A new car built by my company leaves somewhere travelling at 60 mph. The rear differential locks up. The car crashes and burns with everyone trapped inside. Now, should we initiate a recall?

      Take the number of vehicles in the field, A.

      Multiply it by the probable rate of failure, B.

      Multiply the result by the average out-of-court settlement, C.

      A x B x C equals X.

      If X is less than the cost of a recall, we don’t do one.

      The key is to make sure that X is always considerably higher than A x B x C. Always.

    • Mx Phibb@reddthat.comOP
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      1 year ago

      True, but as they noted in the article, this gives the law a few more teeth, like the ability to extradite people, so while it likely won’t effect the big corporations, I think small fly by night companies that avoid the law by moving out of state will be held accountable.