Final answer:
The issue of legally valid claims can be addressed by clearly defining property rights, which dictate the legal responsibilities and obligations of the parties involved. By doing so, the involved parties can determine who is financially responsible for preventing and mitigating risks, such as fire hazards caused by railroad operations near a farmer's field.
Step-by-step explanation:
When discussing the need to satisfy legally valid claims, an understanding of property rights is crucial. Property rights define the legal rights of ownership that prevent others from infringing without paying compensation. The discourse provided by Coase highlights that without clear property rights, endless disputes may arise leading to ineffective resolution of issues, such as preventing a farmer's field from being set aflame due to railroad operations.
It is imperative that either the railroad or farmer holds a clear legal responsibility for mitigating risks. If such responsibility is established, the responsible party would seek out and implement cost-effective methods to diminish those risks, thereby outlining who bears the financial burden for potential damages caused by their actions.
In addition, standards such as those from OSHA (Occupational Safety and Health Administration) mandate employers to provide safe working conditions and comply with health and safety regulations. This involves a multitude of responsibilities such as providing safety training and personal protective equipment, all of which fall under the umbrella of maintaining a safe work environment and minimizing risks to employees and others.