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Table of Contents

Introduction

1Introduction to Microeconomics

Cooperation

The Production Possibilities Frontier

Worked Example

Case Problems

Specialization

Isolated Decision Making

Costs

Benefits

Marginalism

Incentives

Introduction to Markets

Individual Demand

Case Problems

Market Demand, Supply, and Equilibrium

Market Efficiency and Failures

Market Failures

Transaction Costs

Externalities

Public Goods

Market Structures

Case Problems

Behavioral Economics

Handling Uncertainty

Expected Value

Case Problem

Expected Utility

Interrelated Decision Making

Game Theory Basics

Simultaneous Games

Case Problem

Sequential Games

Moral Philosophy

2Civil Procedure

The Pleading Phase

Case Problems

Under the Microscope—What is the Effect of Detailed Notice Pleading?

The Discovery Phase

Case Problems

Under the Microscope—The Effects of Aggressive Summary Judgment

The Trial Stage

Case Problems

The Appeal Stage

Case Problems

3Torts

Intentional Torts

Case Problems

Long Live Ronald Coase

Negligence

The Breach of a Duty of Care

Case Problems

Proximate and Actual Causation

Case Problems

Damages

Game on—Considering Negligence in Terms of the Prisoner’s Dilemma

Strict Liability

Abnormally Dangerous Activities

Case Problems

Strict Products Liability

Case Problems

Misrepresentation

Case Problems

Defamation

Case Problems

Interference with Economic Relations

Case Problems

First Amendment Limitations on Tort Recovery

4Common Law Contracts

Introduction

Game on!—Contract Performance as a Sequential Turn Game

The Agreement

Case Problems

Game on!—Contract Formation as a Coordination Game

Real Assent

Under the Microscope—Determining Duress by Threat

Case Problem

Case Problem

Case Problems

Under the Microscope—Operating Under Imperfect Information

Under the Microscope—How does Probability Affect Price?

Consideration

Under the Microscope

Getting Real—How do you Settle a Liquidated Debt for Less than its Full Value?

Some Contracts are Enforceable without Consideration

Validity

The Statute of Frauds

Case Problems

Under the Microscope

Case Problems

Unconscionability

Case Problems

Under the Microscope—the Non-compete Clause

Clear Terms

Case Problem

Case Problems

Performance

Excuses for Non-performance

Breach

Damages

5The Sale of Goods

Introduction

Case Problems

Game on—The Sale of Goods Subgames

Warranties in Sale of Goods Contracts

Case Problems

Under the Microscope—Which Privity Theory is Correct?

Risk of Loss and Title

Case Problems

Under the Microscope—The Coase Theorem

Performance and Breach

Case Problems

Game on—The Holdup Problem

Remedies for Breach

Case Problems

6Secured Transactions

Introduction

Under the Microscope

Collateral Classification

Getting Real—How to Sort Through Property Classification

Attachment

Case Problems

Perfection

Case Problems

The Purchase Money Security Interest

Case Problems

Priority

Case Problems

Under the Macroscope—The Quantity Theory of Money

Default and Enforcement

Case Problems

7Agency

Agency Formation and Termination

Long Live Ronald Coase: The Nature of the Firm

Case Problems

Liability in Torts and Contracts

Case Problems

Duties between Principal and Agent

Under the Microscope: The Principal-agent Problem

Case Problems

Employment Law

Getting Real

Case Problems

8Business Associations

Sole Proprietor

Tax Concerns for the Sole Proprietor

General Partnership

Case Problems

Tax Concerns for the General Partnership

Limited Partnership

Case Problems

Tax Concerns for the Limited Partnership

Limited Liability Company

Case Problems

Tax Concerns

The Corporation

Cases Problems

Tax Concerns for the Corporation

Appendix A: Answers to Case Problems

Chapter 1: Introduction to Microeconomics

Chapter 2: Civil Procedure

Chapter 3: Torts

Chapter 4: Common Law Contracts

Chapter 5: Sale of Goods

Chapter 6: Secured Transactions

Chapter 7: Agency

Chapter 8: Business Associations