If the level of prescribed
care is much higher than the optimal level of care, the court's rule will function
like a strict liability rule; the defendant will take the optimal level of care
and will pay its excess liability. In this case, the level of care taken will
still be efficient, but a transfer of wealth will take place from the defendant
to the plaintiff. Because of the possibility of activity level and price effects
(infra) the result may still be inefficient.