ECO320Y5 Study Guide - Midterm Guide: Coase Theorem, Avoidance Speech, Social Cost
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6:10 pm to 8:00 pm kn l1220. Please read all questions carefully before answering them. (10 marks) question 1. When people strongly disagree, they may try to harm each other, or they may walk away from a potentially profitable exchange. The normative hobbes theorem (nht) has greater application in the case of strong disagreements, due to the possibility of harm. Structure the law so as to minimize the harm caused by failures in private agreements. For full marks it was sufficient just to deal with nht and how it applies in two (2) situations where people who cannot contract either ignore each other or apply harmful tactics. (10 marks) question 2. Doctors who form a partnership may say nothing in the partnership agreement concerning its future dissolution. The parties may deliberately avoid discussing dissolution for fear of breeding distrust. Provide and explain some other examples of gaps left in contracts for strategic reasons.
