ECO320Y5 Lecture Notes - Lecture 3: Externality
Document Summary
A legal dispute happens when someone claims to have been illegally harmed at the hands of another. The person who is alleged to have injured the plaintiff is called the defendant. The parties may drop the dispute or settle the dispute due to the cost of going to trial. Prior to a trial, one has discoveries, hearings, and pretrial conferences. The converse of the thereom of coase is also presented by cooter. When transaction costs are high enough to prevent bargaining, the efficient use of resources will depend on how property rights are assigned. Courts actually listen to lawyers about what is most advantageous to the clients and the court will listen to whichever is best (can be altered by how smart or experienced the lawyer is) If a bad precedent existed, a lawyer must argue around it. Nowadays judges are more flexible with precedent. Structure the law so as to remove the obstacles agreements (page 83)
