Legal Notes - Legal Studies Chapter 1 01/12/09 Dependency...

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Legal Studies Chapter 1 01/12/09 Dependency Theory - This theory argues that economically strong nations exploit the resources and labor of weaker nations through trade. Natural resources as well as education and technology help explain economic prosperity Private Market - According to many economists, the presence or absence of a modern private market is the single most significant reason why some economies are strong and others are weak Law and the Legal System - An adequately enforced system of equally applies law is increasingly recognized as a necessary foundation for strong, productive economies. Law secures the elements of trust and certainty that are vital to economic transactions among strangers. A certain type of legal system is the most fundamental part to national wealth creation Law, the Rule of Law, and Property - the three concepts that establishes the necessary framework for the most effectively functioning market in the modern nation Law - tells people what they can and cannot do. To maintain order in society, adequate enforcement institutions such as courts and police are necessary Rule of Law - Laws that are made that are generally and equally applicable. They apply to all or most members of society and they apply to various groups in the same way Rule of law nations adopt laws supporting the private market because it is in everyone’s interest, including the lawmakers’ “An environment in which courts cannot be relied upon to adhere to the rule of law is an environment in which businesses will be reluctant to invest and in which development will be stunned. The rule of law is a corner stone of free trade Rule of law is more of an ideal than complete fact in even the most democratic nations Property -Is a legal right that allows you to exclude others from your resources. It makes what is yours “yours” Three ways of applying the exclusionary right of property are: public(state), private(individual), common(more than one individual) The exclusionary right of property provides a basis for the private market and modern business Without law that guarantees property in resources, there is little incentive for anyone to develop resources since they may be seized by the state or others who want them Where there is inadequate property law , individuals either have few resources or must guard their resources by force, and the conduct of modern business is almost impossible due to lack of trust Do not think of property as the things owned. In law property means “ownership” Do remember that the property right gives a major incentive to develop resources 1
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Legal Studies Chapter 1 01/12/09 It is a property-based legal system that enables control by allowing people to exclude others from interfering with what their efforts produce. Importantly, such a system protects and assists the poor as well as the wealthy In property based legal systems , you can come to own resources in various ways: Gift, exchange, accession(changing a raw material into a finished project), confusion, first possession, adverse
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This note was uploaded on 04/02/2011 for the course LEGL 2700 taught by Professor Reed during the Fall '07 term at University of Georgia Athens.

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Legal Notes - Legal Studies Chapter 1 01/12/09 Dependency...

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