Authorised by Academic Registrar, April 1996
Objectives Students completing this subject should (1) have a good understanding of basic economic concepts; (2) be capable of analysing legal rules, court decisions and statutes from an economic perspective; (3) be in a position to undertake rigorous policy analysis of law reform proposals; and (4) be aware of the limitations of economic analysis and familiar with the theoretical literature addressing this topic.
Synopsis The subject is designed to apply systematically the method of economics to the analysis of law - to the structure of the common law, legal processes, legal institutions and statutory regulation, and to the impact of law upon the behaviour of individuals and groups and the functioning of the economy. Topics to be covered will include (1) nature of economic reasoning and the economic approach to law; (2) property rights in economics and law - pollution, zoning and nuisance laws; (3) torts - the rule of liability, accidents and compensation, products liability; (4) crime - optimal criminal sanctions; (5) contract - bargaining power and unconscionability, standard form contracts, remedies; (6) the corporation - the nature of the corporation, coordination by integration or contract; (7) regulatory law; (8) the court system, cost and fee rules, rules of civil procedure; and (9) overview - is the law efficient; should it be?
Assessment Research paper (5000 words): 50% + Final examination (2 hours): 50%