Let's break it down. "Indemnity" means not having a legal responsibility for something. "Anti" is the opposite of something. A "statute" is a law. So the anti-indemnity statute prevents the elimination of legal responsibility for particular parties (it feels like there's a double-negative involved there).
Generally, the anti-indemnity statute is used in the construction business. A contractor hires a subcontractor and attempts to get the subcontractor to take on any risk associated with the project, legal responsibility for things like accidents and safety. The contractor wants indemnity against being sued if something goes wrong. Anti-indemnity statutes prevent this from happening, at least to some extent. Basically, they put a limit on this indemnity and say that some legal responsibility still rests with the original contractor, whatever it says in the contract they signed with someone else. The scope of these laws vary from state to state. For instance, DC (which we know isn't technically a state, but still) doesn't have any anti-indemnity statutes on the books (as of 2016). Meanwhile, California is one of the few states that prohibits both broad and intermediate indemnity. This according to a report put out by Matthiesen, Wickert & Lehrer.Related or Semi-related Video
Finance: What is the Free Rider Problem?10 Views
finance a la shmoop. what is the free rider problem? free rider not Easy Rider
but a great film ask your parents about it and go watch it someday.
alright and if there was any confusion this video is not about ebikes either. [kid holds up VHS in a movie rental store]
you know those battery-powered bikes? okay so you're a tax derelict. you hate
paying taxes so much you just don't. but then North Korea sends over a nuke.
well it's about ten miles off the coast just about to make you glow in the dark
forever, when one of our homing robot defense missiles shoots out the belly of
a nuclear sub, and blows that nuke from North Korea all the smithereen. thank you
very much. so now the country is safe not so much North Korea but that's a
different story. well you didn't want to pay your taxes. [missile flies through the air]
you didn't want to fund that sub or the brave sailors in it or the homing drone
or the myriad other fancy tech things that powered it. you deadbeat tax non
payer that you are, you wanted a free ride. a free ride on everyone else's hard
earned money that they paid taxes on. all right so how do we avoid this problem
like you? well we have the IRS and they have an army of geeks who make sure you
pay your taxes, so you can't just freeride on the rest of our backs. and if
you don't pay your taxes you face serious jail time and we'll have to end
up paying more than if you just fallin in step and pay your taxes on time along [man is thrown in jail.]
with everyone else. got it all right free-rider problem solved.
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