This chapter compares strict liability and negligence rules on the basis of the incentives they provide to "appropriately" reduce accident losses. Under strict liability, the outcome is efficient, and again the reasoning is a little different from that in the last subcase. Under the negligence rule, restaurants will decide to avoid liability by taking appropriate precautions to prepare meals under sanitary conditions. The unilateral case is studied for two reasons. First, it is descriptive of situations in which whatever changes in the behavior of victims that could reasonably be expected to result from changes in liability rules would have only a small influence on accident losses. The second reason is pedagogical; it is easier to understand the general bilateral case after having studied the unilateral case. In the bilateral case, two additional liability rules are considered, strict liability with a defense of contributory negligence and the negligence rule with that defense.