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Unformatted text preview: Property Outline Theories Behind Property Rights:- Law and Economics: o Property system allows gov. to operate efficiently Minimize gov. interference and promote law and order o Items, land, intellectual property: Capable of being owned Transferable Exclusivity: ability to protect your property o Property rights maximize efficiency and best use of resources o Clear property rights reduce transaction costs o Coase Theorem: ?- Individual rights: o Ability to exclude others ability to interfere w/ your enjoyment of you property- Systemic: o Property Rights determine how a country functions o Broad policy issues- Possession: o 9/10s of the law o Law sides w/ individual who possesses item- Use: o Use it or lose it If property not used by owner, it passes to those who use or develop it o Incentivize action over inaction Ownership v. Bundles of Rights:- Sticks of rights: o Land, air, sub-surface, easements (sell ability for others to use the property), LL/T (long term owner v. short term owner)- Each stick is limited in different ways: o K, law Finders Law: look at strengths/weaknesses of each side, goals of property: paragraph of black letter, give the policies, then tell what to do w/ 3+ people: organization is important Rules of Finders Law:- True owner has the highest rights o Though cut off at some point by statutes- 1 st Finder has property rights against all but the true owner: Armory : boy finds jewel, jeweler steals it o Why?: listed in order they are put forth Labor: Reward finders: reward the labor of the finder Finders keepers: jives w/ our sense of this axiom People wont act on found items if they possess no ownership rights o Dont want to Incentivize people to pocket the item Encourage labor: incentive in future to pick-up lost items W/ modern minimum wage employee: no incentive to check aisles after work, so more labor is needed to find it and thus labor becomes more important Law and Order: Society interest in discouraging theft o If finder had no property rights, found property would be subject to theft o Dont want to Incentivize theft and lesson ability of true owner to recover property Non-possessed property causes problems Against Finder: dont want to incentivize people to dig through others land True owner recovery: 1 st finder is closer to true owner o Knows where, when item was lost o If 1 st finder retain possession, more likely true owner will recover item Exceptions: shop owners get property rights b/c they are closer to true owner than 1 st finder: people remember losing items in a place and have a better chance of recovering if the shop owner keeps the item Clear Rights: Vesting clear rights in finder allows them to bring the item to commerce o Disincentive to hide and never sell item Economic interest: law and economics: title in finder means they can improve and resell item SOL cut off true owners rights: convert finders rights to...
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This note was uploaded on 08/28/2008 for the course LAW 431 taught by Professor Dzienkowski during the Spring '08 term at University of Texas at Austin.
- Spring '08