Semester: Spring 2005
Instructor: George Berger
Office: 123 Krebs
Phone: 269-2982/2990 or 2991
Office Hours: MWF 2-3, 4-6, TH 2-3:30, 5-6 or by appointment

I. TEXTS: David D Friedman, Law's Order , Princeton University Press, 2000.       
                 G. Berger, Supplementary Readings, Spring 2005

II. PREREQUISITE: Econ 105

III. ORGANIZATION OF COURSE

A. Introduction
          1. Text:  Friedman, Chapter1: "What Does Economics Have to Do With Law?" pp. 8-17
                                        Chapter 2: "Efficiency and All That" pp. 18-26


2. Supplementary Readings (48 pages)
a. Bruce Benson, "Enforcement of Private Property Rights in Primitive Societies: Law Without Government," The Journal of Libertarian Studies, 9:1, Winter 1989, pp. 1-26.

b. Tom Bell, "Privately Produced Law," Libertarian Alliance Legal Notes No. 16, 1991, pp. 1-7.

c. Bruce Benson, "The Spontaneous Evolution of Commercial Law," in Reputation, edited by Daniel B. Klein, University of Michigan Press, 1997, pp. 165- 75, 181-88.

B. Property Rights

1. Text:  Friedman, Chapter 3: "What's Wrong with the World, Part 1," pp. 28-35;
                              Chapter 4: "What's Wrong with the World, Part 2," pp. 36-46;
                              Chapter 5:  "Defining and Enforcing Rights" pp. 57-62
                              Chapter 10: "Mine, Thine and Ours: The Economics of Property Rights," pp. 112-27.

2. Supplementary Readings


 a. Robert J. Smith, "Private Solutions to Conservation Problems," in The Theory of Market Failure: A Critical Examination, Edited by Tyler Cowen, George Mason University Press, 1988, pp. 341-60.

b.  Terry Anderson, "Wolves in the Marketplace," WSJ, August 12, 1992, p. A10.

c. Ike Sugg, "To Save an Endangered Species, Own One,"  WSJ, August 31, 1992, p. A10.

d. Karl Hess, Jr., "Rocky Times in Rocky Mountain National Park," Liberty, 5:3, January 1992, pp. 31- 37.

e. Ellen Paul, "Taking Liberty," Reason, March 1984, pp. 45-49.

*f. Bruce Benson, "Do Holdout Problems Justify Compulsory Right-of-Way Purchase and Public Provision of Roads," Working Paper, pp. 5-38.


C. Contracts
1. Text: Friedman, Chapter 12: "The Economics of Contract Law," pp. 145-170;
                             Chapter 13: "Marriage, Sex and Babies," pp. 171-188.

2. Supplementary Readings


*a. Jonathan Macey, Insider Trading: Economics, Politics, and Policy, 1991, pp. 7-29, 31-36, 41-47

b. James Ostrowski, "Wanted for Outsider Trading," Ludwig von Mises Daily Article, August 26, 2002, pp. 1-5

c. Michael McMenamin, "St Martha," Reason, October 2003, pp. 23-30.

d. Lisa Gubernick, "The Olivia de Havilland of Rock," Forbes, January 3, 1994, p. 87.

e. Allen Parkman, "Terms of Endearment," Reason, June 1993, pp. 29-33.

f. Richard Epstein, "Organ Transplants: Is Relying on Altruism Costing Lives?" The American Enterprise, Nov/Dec 1993, pp. 51-57.

g. Donald J. Boudreaux, "A Modest Proposal to Deregulate Infant Adoptions," Cato Journal, 15:1, Spring/Summer 1995, pp. 117-35.

EXAM 1 (Friedman, Chapters 3, 4, 5, 10,12,13, and Supplementary Readings)

D. Torts 
          1. Text: Friedman, Chapter 14: "Tort Law" pp. 189-222

2. Supplementary Readings


a. Michael I. Krauss, "Restoring the Boundary: Tort Law and the Right to Contract," Cato Policy Analysis, No. 347 (June 3 1999), pp. 1-12.

b. Paul H. Rubin, "Fundamental Reform of Tort Law," Regulation, 1995:4, pp. 26-33.

c. Richard Epstein, "Is Pinto a Criminal?" Regulation, Mar/Apr 1980, pp. 15-21.

d. Carolyn Lochhead, "Liability and Crisis in Obstetrics" Civil Justice Memo, The Manhattan Institute, May 10, 1990, pp. 1-3.

e. Michael Freedman, "The Tort Mess," Forbes, May 13, 2002, pp. 91-92, 94, 96, 98.


*f. Bruce Benson, "Rent-Seeking on the Legal Frontier," in Cutting Green Tape, ed. by Richard Stroup and  Roger Meiners, Transactions Publishers, 2000, pp. 129-50.


E. Crime
1. Text: Friedman, Chapter 15: "Criminal Law" pp. 223-243;
                             Chapter 18: "The Crime/Tort Puzzle" pp. 281-96

2. Supplementary Readings

a. Bruce Benson, "Corruption in Law Enforcement: One Consequence of 'The Tragedy of the Commons' Arising with Public Allocation Processes," International Review of Law and Economics, 8 (1988), pp. 73-84.

b. Bruce Benson, "Restitution in Theory and Practice," Journal of Libertarian Studies, 12:1, Spring 1996, pp. 75-98.

c1. Bruce Benson, "Crime Control Through Private Enterprise," The Independent Review, 2:3 (Winter 1998), pp. 341-68.

**c2. Morgan Reynolds, "Using the Private Sector to Deter Crime," Policy Report No. 181, National Center for Policy Analysis, March 1994, pp. 1-32. 


d. David Friedman, "Private Law Enforcement, Medieval Iceland, and Libertarianism," Liberty, 2:6, July 1989, pp. 37-40.

e. Daniel Popeo, " Privatizing the Judiciary," The Freeman, August 1988, pp. 300-303.

g. Bruce Benson and Laurin Wollan, "Prison Overcrowding and Judicial Incentives,"  CX Update, September 1989,  pp. 1-3.

h. Jeffrey Shedd, "Making Goods Behind Bars," Reason, March 1982, pp. 23-32.

EXAM 2 (Friedman, Chapters 14-15, 18 and Supplementary Readings)

1. The course grade will be based on a total point score of 200 points with each exam counting 100 points. Although I cannot specify how many points are needed for an A, how many for a B, etc., at this time, I will indicate grade ranges after each exam.

2. +'s and -'s will be used in final grades where appropriate.

3. Students are responsible for knowing the list of vocabulary words which will be available on my website.

4. All exams will be given in two stages. The first stage will consist of matching definitions which must be answered without the use of notecards. The second stage will consist of essay questions which can be answered with the aid of an unlimited number of 3" x 5" (or larger) notecards. Exam questions will be based on the homework problems and the relevant supplementary readings. The exam questions will be different from the homework problems but if you have worked on the latter, you should be able to answer the former. I will include some extra credit questions as part of each exam. This is the only place that extra credit can be done. NOTE: THESE NOTECARDS MUST BE HANDWRITTEN. I WILL REQUIRE ALL STUDENTS TO TURN IN THEIR NOTECARDS TO ME AFTER THE EXAM. THAT MEANS YOUR NAME MUST APPEAR ON EACH NOTECARD YOU USE. IF I DISCOVER THAT SOMEONE HAS USED XEROXED NOTECARDS THAT PERSON WILL RECEIVE A ZERO ON THE EXAM.

5. Exam dates will be:

Exam 1 - Feb 27 (approximately)

Exam 2 - Tues, Apr 26, 12:30 PM


Please note that you must take Exam 2 when scheduled. Exceptions will be allowed only if students provide evidence of two other exams on the scheduled date.

6. Your grade can be calculated as follows: (1) Assume you earned a 73 on the first exam. Assume that scores of 70-79 are Cs and scores of 80-89 are Bs. (2) Assume you earned an 83 on the second exam. Assume that scores of 80-89 are Bs. Your total number of points earned after the second exam add to 156. What is your letter grade? Add together the minimum scores for a B which in this case is 160 points. Since your point total is less than the minimum score to earn a B, you have a C+ in the course after the second exam. (NOTE: The ranges used in this example are not necessarily the ranges that I will use during the course of the semester.)

7. Make-up exams will be given at my discretion. If your excuse for missing an exam is documented, I will give you the original exam. NOTE-THE FOLLOWING PROCEDURE MUST BE USED IN ORDER TO DOCUMENT YOUR ABSENCE: IF YOU ARE GOING TO MISS AN EXAM BECAUSE OF A MEDICAL OR PERSONAL EMERGENCY, YOU MUST CONTACT ME ON OR BEF0RE THE EXAM DATE. FAILURE TO FOLLOW THIS PROCEDURE WILL RESULT IN A ZERO ON AN EXAM (REGARDLESS OF THE NATURE OF THE EXCUSE). THERE WILL BE NO EXCEPTIONS TO THIS POLICY.

8. Homework problems are available online as are the answers.

9. There is a reward for class participation. We will have two class discussions on specific articles in each of the two sections of the course. This is your chance to earn extra credit points so read the article, prepare your answers to the supplementary readings questions on notecards, and bring them to the class discussion. Even if you do not participate I will give you some credit for preparing the cards--so show them to me after class discussion.


10. Class attendance is required. You are allowed two absences. Any absences after that will be penalized 3 points for each absence.

11. Anyone caught cheating on any exam gets a zero. This will make passing the course very difficult.

12. Please note that the customary rules of etiquette in the workplace apply in the classroom. Consistent breach of these rules will result in a polite request to the offender to leave the classroom.

13. FYI: DROP DEADLINE IS MARCH 16

15. Students with disabiulities should notify the Office of Disability Services as soon as possible if special arrangements are necessary for exams. Processing an application can take up to two weeks or more and I must receive notification from that Office a week in advance of any exams.