Introductory concepts of Business Law (2014)Apunte Inglés
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Mitigation of damages doctrine: If someone breaks a contract with you, you gain the right to send the breacher a
bill for the damages, but the law requires that you make reasonable efforts to keep the size of the bill down.
Statutes of limitations: They give a plaintiff a fixed period of time and no more to bring a lawsuit about an accident, a breach of contract, or whatever other claims.
Rent seeking: wasteful efforts to gain a prize.
Direct rent-seeking: Suborn.
Principal-agent problem: The agent is the person supposed to be working to the principal’s behalf. Between them is a conflict of interest and the principal cannot be sure of the effort the agent is making, so the agent shirks.
Cascade: When people are not sure about the results of a decision or what decision to take, they rely on what others think, and then others rely on what others seem to think, and so on.
Suppressed markets: The law create a suppress market and puts market competition out of the community under the auspices of the law.
Slippery slopes: The first decision lowers the cost of the second one. The first decision affects the attitudes brought to the second one. Ideas about equal treatment require the second decision to be made like the first one. The first decision affects the power of those interested in the second one.
Acoustic separation: Actions would be different if the rules told to people in the world and the rules that courts actually enforce were different. People would act more carefully but then wouldn’t be punished so hard if they make a mistake.
Property rules: Invasion is punished, whether with jail, fines or punitive damages.
Liability rules: A right is protected by a liability rule if someone can get away with destroying it so long as he pays the cost. The rule doesn’t apply to things but to situations.
Efficient breach: Breach of a contract because it’s cheaper. On an economic view, a rule invites you to compare the cost of keeping a promise with the cost of breaking it, and to do whichever is cheaper.
Baselines: It is understood as a limit to your actions or rights. If it is excessive the state is considered paternalist.
Paternalism: A policy of treating people in a fatherly manner, especially by providing for their needs without giving them rights or responsibilities.