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I. The Common Law Method Overview COMPLETELY INDETERMINATE--------------------------------COMPLETELY DETERMINATE Indeterminate: There could be many outcomes to a legal question o More flexible, similar to legal realism Determinate: There is one right answer to a legal question o More rigid, similar to formalism Critical Legal Theorists argue that law is completely indeterminate: in every possible case, any possible outcome is legally correct Solem’s article: way to refute strong indeterminacy thesis is to show that there is at least one possible case where one outcome is legally incorrect o Ex.: Is guy at beach guilty of antitrust violation? Legal Realists Holmes-Social Science Must look at the substance behind the logic o Bad if rationale for rule is gone but continues to persist b/c of imitation of past Law is through experience, not logic—imagination and intelligence (questioning the reasoning behind the role) is most important Sometimes need to make changes if it is better for society (more just)—emphasis on social benefit Law is trying to predict what the “bad man” will do (morality doesn’t deter him but law might) Legal realists focus on prediction—precedent doesn’t help shape society Need social science to predict consequences of rules o Look at consequences of decisions, not just the history Cohen-Transcendental Nonsense Law is not a science but a practical activity Evaluate law in terms of substance and social changes, not just based on logic Need to look at consequences of legal rules (substance) Uses example of Cardozo opinion trying to determine where a corporation is to be sued, basis in precedent (PA corp in NY; court bases rationale on whether corp was physically in NY even though it had business in NY) o Law doesn’t focus on social factors but rather on technicalities that aren’t that important; too much logic = nonsense Kronman, “The Lost Lawyer” Judicial creativity is constrained by rules and traditions—gave rise to interpretation

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  • I. The Common Law Method

    Overview COMPLETELY INDETERMINATE--------------------------------COMPLETELY DETERMINATE

    Indeterminate: There could be many outcomes to a legal question o More flexible, similar to legal realism

    Determinate: There is one right answer to a legal question o More rigid, similar to formalism

    Critical Legal Theorists argue that law is completely indeterminate: in every possible case, any possible outcome is legally correct

    Solems article: way to refute strong indeterminacy thesis is to show that there is at least one possible case where one outcome is legally incorrect o Ex.: Is guy at beach guilty of antitrust violation?

    Legal Realists

    Holmes-Social Science Must look at the substance behind the logic

    o Bad if rationale for rule is gone but continues to persist b/c of imitation of past Law is through experience, not logicimagination and intelligence (questioning the

    reasoning behind the role) is most important Sometimes need to make changes if it is better for society (more just)emphasis on

    social benefit Law is trying to predict what the bad man will do (morality doesnt deter him but law

    might) Legal realists focus on predictionprecedent doesnt help shape society Need social science to predict consequences of rules

    o Look at consequences of decisions, not just the history

    Cohen-Transcendental Nonsense Law is not a science but a practical activity Evaluate law in terms of substance and social changes, not just based on logic Need to look at consequences of legal rules (substance) Uses example of Cardozo opinion trying to determine where a corporation is to be

    sued, basis in precedent (PA corp in NY; court bases rationale on whether corp was physically in NY even though it had business in NY) o Law doesnt focus on social factors but rather on technicalities that arent that

    important; too much logic = nonsense

    Kronman, The Lost Lawyer Judicial creativity is constrained by rules and traditionsgave rise to interpretation

  • The In-Betweens

    Cardozo, Nature of Judicial Process Judges have discretion but there is a limit to how much freedom they have Dont fully rely on precedent but precedent can be controlling and useful for cases

    o If abandon precedent judicial anarchy The main tools that shape the progress of law: logic, history, custom, accepted

    standards of right conduct, morality

    Dworkin-Chain Novel Dont invent lawneed to look for principles that both fit and justify complex part of

    legal practice o Horizontal consistency of principles across range of legal standards community

    now enforces Two concerns of each legal question:

    o (1) FIT: How do well make legal novel move forward? Must decide what will fit given what is provided before (judge is not free to write whatever he pleases)

    o (2) BEST OPTION: Find the best option given the circumstancesthere may be more than one correct answer but there is a line b/w correct and incorrect interpretations

    o Overall, must decide which will be best fit in overall comparison with other interpretations

    Establishes some level of constraint (judges act as check on each other), but also some room for creativity

    Formalists

    Burke Incrementalism-Precedent is Good Precedent is importantwe inherent our rights from the past; societies rely and build

    upon a foundation Change the common law judges do is incrementaldraws from past wisdom and

    applies to present Individuals ignorant relative to mass of individuals (wisdom of crowds) Important to respect precedent because:

    o Legitimacy: people will respect law and unelected judges if respect precedent o Accuracy: knowledge in pre-existing decisions might have info content o Distrust of Abstract Theory o Information: If something has been a certain way for a long time, then it is

    probably working relatively well o Law of Unintended Consequences: Leads to uncertainty/instability-not certain

    that drastic change will lead to a better result than incremental change o Wisdom of crowds: Judges of past generations are like a crowd, and collectively

    have incrementally created better changes rather than working individually

    Slippery Slopes All legal change could create slippery slope that could lead to more legal change

  • Cause of Slippery Slope: 1. Lowers Cost: one action might lower costs of second action

    Ex: Gun registration makes it easier to find guns confiscation 2. Attitude Changes: once first decision is made, it becomes a presumption and

    affects attitudes brought by second decision Ex: If legalize same-sex marriage, could change attitudes about polygamous

    marriage 3. Equal Treatment Requirement: Two decisions, A and B, will appear to be the

    same to the public and it will be difficult to distinguish the two (more likely to approve both decisions) Condescending idea: elite can see distinction but majority of public cannot

    4. Empowers Interest Groups: affects powers of those wanting to change rules for second decision Ex: marijuana legalization can create lobby groups that can push for

    advertising of marijuana 5. External Societal Factors: unforeseen factors might move society from decision A

    to decision B being logical extension but unintended consequence Katz: as technology advances and becomes more standard, it becomes easier

    for government to encroach on publics privacy and no convos will be private Adaptive preferences lead to slippery slope: can adjust and justify any bad behavior

    Fourth Amendment Search Cases Olmstead (SCOTUS 1928): wiretapping disclosed private convos not violation of 4th Am

    o No search/seizure of any tangible, material effects and no physical invasion of house; just a recorded convo (convos dont fall under category of tangible, material effects)

    Goldman (SCOTUS 1942): convo heard through detectaphone not illegal by trespass or unlawful entry and use of detectaphone was not violation of 4th Am

    o Use of detectaphone was not physical invasion of Ps space (have to actually cross property line in order for it to be trespass)

    Silverman (SCOTUS 1961): Physical invasion of Ps premises to secretly hear/record convos was violation of 4th Am

    o Didnt acknowledge whether it constituted trespass b/c not sure if spike mic actually crossed the line into Ps property

    o Court started to recognize that what is important is not trespass but privacy rights Katz (SCOTUS 1967): Electronic device to hear persons convos in phone booth when P expected privacy) is violation of 4th Am (even though didnt physically penetrate barrier)

    o Phone booth qualifies as private space when it being used for personal convos o Overruled prior cases (dramatic decision); this is a constitutional decision o Protecting property is not a good way to protect privacy with advance in tech

    Slippery slope: From 1928-1967 shift in interpretation of 4th Am o Initially, it was necessary to trespass in order for it to be 4th Am violation o Later, just invading someones privacy rights is enough for it to be 4th Am violation

  • II. Rules v. Standards

    Overview Rule: more binding to the facts, less discretion, captures background principle/policy Standard: decreases error of over- and under- inclusiveness by giving more discretion,

    includes all relevant factors, different decision produced from different cases Rules are more constraining and determinate than standards

    Cases Papachristou (vagrancy case)

    o Rule better than standard (lack of fair notice) o Void because of vaguenessinefficient if law trying to induce certain behavior o Rule of law must be evenly applied to all in order to hold society together

    Mcaller (fraud case) o Standard better than rule (certain types of fraud permissible) o Rule gives clear definition of fraud and it tells crafty people how to avoid being

    punished; better to surprise people with the law Stanley (unwed father case)

    o Standard better than rule (determine fitness of the father) o Admin costs v. justice might be cheaper/more efficient to have categorical rules

    but Due Process protects values of vulnerable citizens from efficiency concerns Constitution recognizes higher values than efficiency

    o Focus on purpose behind the rule (to protect best interest of children) One way to resolve rules v. standards issue is to create a hierarchy of rightsif it is

    important, use standard; if not important, use rule o Categorical rules: fitness of parent (important), voting age (not as important)

    Factors 1. Potential for Abuse

    o Rules: more protection by making it clear and better at controlling parties o Standards: rules are easy targets for evasion (edge of cliff argument)

    2. Fair Notice v. Vagueness o Rules: more precise so alert people about lawful/unlawful conduct o Standards: sometimes element of surprise is good (edge of cliff)

    3. Precision o Rules: more predictable; clear in advance but crude in application o Standards: less clear in advance; uncertainty has its own costs

    4. Expertise o Rules: requires more expertise b/c rules try to predict best outcome in as many

    situations as possible o Standards: if less expertise, err on side of standardresolving cases can provide

    necessary info to create adequate rules 5. Blame and Accountability

    o Rules: emboldening idea-gives judge a way to enforce law w/o worrying about blame; more accountable

    o Standards: requires users to explain rationale (appears more accountable)

  • 6. Uncertainty and Conflict o Sometimes not sure what right rule will be, so better to make decision case by case

    7. Admin Costs o Rules: cheaper, more efficient, but maybe doesnt lead to just results o Standards: more expensive but lead to more just results o NOTES: increase in use of standards = increase in wealth of society; need to think

    about how often standard will be used (worth it if not used often); hidden costs of rule-time and investigation required to make rules and that can be expensive

    8. Rent-Seeking o Rules: clear-written rule and less discretion reduces rent-seeking o Standards: encourages rent-seeking; with more discretion, interest groups lobby

    Rules v. Standards Debate Standards Good Rules Good

    o Rules are over and under inclusive: they are inaccurate

    o Rules may drive discretion underground

    o Rules can be roadmap for evasion o Judicial Activism: make broad

    judgments

    o Prevent unfair surprise o Restrict arbitrary and discretionary

    enforcement o Saves on admin costs o Appearance of equal treatment:

    treating like cases the same o Predictability o Greater judicial restraint o Greater judicial independence

    o NOTE: Scalia adds that there should be caution in framing a standard of behavior: when there is no background experience, it will lead to an artificially developed standard of behavior

    III. Interpreting Statutes

    Textualism v. Purpose-Driven

    Textualism: Judges do not have authority to pursue broader social purposes or to write new law; text should be construed to contain all that it fairly means; formalist approach b/c law is about form o Scalias exception is scrivenors error: clear that mistake of expression was made

    Purpose-Driven: Rather than take literal reading of text, need to look at the spirit of the statute and what was the legislators purpose for writing it

    Debate Agreement: first look at text before interpretation; text receives significant weight; text

    cannot control if it is ambiguous or open-ended Textualism Purpose Analysis

    1. Restraint on judges (similar to rules) 2. Discipline legislator: penalty default

    1. Speakers meaning: interpreting (not re-writing) statute to seek authors intent

  • idea-pressure on leg to think harder

    when writing statute

    3. Best evidence of intent: if majority of time text reflects intent, purpose driven

    approach might get statutes intent wrong

    4. Incoherence: difficult to determine intent of group than intent of individual

    5. Bargain: possible that there were different compromises leg made in creating statute

    2. Context: meaning to parties dependent on context of communication

    3. Faithful agent: leg wants courts to use discretion and J to avoid absurd results

    4. Cheaper: leg not always able to perceive problems that can result from not including

    each term

    5. Legislative inertia: if problems are inevitable and leg inertia is high (too busy to focus on

    this statute), better to have agent fix problem

    Scalias arguments: o Judges must look for objectified intent (gathered from text of law) o Prevents one from exercising his/her biases when interpreting statute o It is not job of judges to create the law; must solely rely on text (unless clear mistake) o Unexpressed leg intent is excuse for judges to change laws that serve their interests

    Easterbrook Approach: o First determine if statute is general or specific

    If specific, then it is result of compromise and no identifiable purpose (not made for public good)

    If general, clear purpose judicial freedom

    Cases Church of Holy Trinity v. US (pastor case) o Shouldnt interpret term literally if it leads to injustice or absurd result; look to spirit

    of the statute o When text is written broadly and is being interpreted incorrectly, duty of Court is to

    determine whether text is within legs intent o SCALIA: disagrees, Congress can enact foolish and wise statutes but courts cannot

    decide which ones to change Riggs v. Palmer (will case) o Rational interpretation: writers of law dont always express their intentions perfectly

    so it is job of courts to collect from it probably/rational conjectures In this case, obvious the leg wouldnt allow murderer to collect inheritance SCALIA: courts cannot determine intent of will; by sticking to text, this could be

    leg punishment and force them to think strongly when creating law o Judges construe statute to be close to principles of justice

    US Steelworkers v. Weber (racial quota case) o Majority: Congress intent in creating law was plight of Negroes; need to correct

    racial imbalance o Concurrence: arguable violation theory-reasonable response w/o fear of L in order

    to correct possible violations of Title VII o Dissent: looks at leg history and says that no racial discrimination is permitted

    NOTE: Interesting point is that in several cases, both the majority and the dissent use leg history/intent to interpret statute and they both reach different conclusionsshows

  • that problem with purpose approach is hard to analyze w/o adding bias and hard to determine which interpretation is the right one

    Voter Paradox and Public Choice Response to idea of legislative intent: process controls outcome; cannot be certain that

    statute accurately reflects desired outcome (esp if bargaining is involved) Group preference can sometimes lead to cycling (leads to different outcome each time

    based on agenda setting); groups preferences arent always transitive o Paradox may make democracy an illusion o Issue of agenda setting can lead to rent-seeking behavior

    Arrows Impossibility Theorem BASIC: if more than two choices, majority will always prefer a different outcome to the

    one chosen (process controls outcome) No method of combining individual preferences can satisfy 5 basic requirements: o 1) Minimum rationality: If society prefers A to B and B to C, then prefers A to C o 2) Pareto standard: If one prefers A to B and nobody cares, then society A to B o 3) Non-dictatorship: Societys preferences are not dictated by one persons desires o 4) Independence of Irrelevant Alternatives: If C is not on agenda, whether A is

    preferred to B should not depend on how either compares to C o 5) Universal Applicability: Method has to work for any possible combo of individual

    preferences, not just one particular solution

    Public Choice Theory Public Choice Theory: o 1) Compromise: statutes are products of deals between legislators and not

    purposeful endeavors; product of relative $$ and power Courts enforce deals b/w different groups with different agendas Ex: Title VII was compromise among diverse groups

    o 2) Interest group politics can systematically produce bad results (systemic divergence from public interest) Smaller groups can more effectively organize than larger groups

    Possible Solution Congress votes of spectrum scaleliberal to conservative, so theres clear preference,

    not incoherent one Two party system solution: parties identify what voters want and make policy choices

    based on those preference in order to win election Uni-peaked preferences: assumes bell curve of preferences, choose median (where there

    is height of preferences)

    IV. Autonomy, Coercion, Freedom of Contract

    Overview Autonomy: when and to what extent is it right for law to make people live with the

    consequences of their choices and what they didnt choose?

  • Cases Lochner v. NY (baker case) o No reason to interfere in freedom of contract (having a job is better than starving)

    Issue of whether or not these contracts are a form of coercion Courts have to draw the line somewhere or else can lead to slippery slope (any job

    can be dangerous) o CAP issue: no baker wants to be the first one to ask for shorter hours (fear of fired)

    Surrogate Parenting Associates v. KY (surrogate/parental rights case) o Freedom of contract: recognize parental rights for both parties-equal bargaining

    power b/c both have some parental rights (similar to divorce/custody battle) o Statutory interpretation: both majority and dissent used leg history/intent to support

    their rationale-problem of which interpretation is the correct one Harris v. Forklift Systems (sexual harassment case) o Example of case where there are many reasons to limit freedom of contract:

    Unequal bargaining power: During 60s, women not prevalent in workforce and had less of a say in terms of contract

    Coercion: Fear of losing job if dont give into demands/hostile working environment (if this environment was common in workplaces, likely that women did not have employment alternatives of non-hostile work environment)

    Externalities: Even if one woman isnt affected by hostile work environment, perception it creates about women in general (they are easy, can be treated this way) leads to other women being adversely affected by acceptance of behavior Moralism externality: people affected by idea that others are involved in this

    behavior (what does this say about society??) Collective Action Problem: Since women dont have a strong position in workforce,

    it is difficult for them to get together and collectively bargain for more fair terms Fear of being the first one to press issue and nobody follows (you will lose job

    while everyone else will possibly free ride) Information Scarcity: Even if there were a provision to accept a hostile work

    environment in contract, it is possible that women did not understand extent of consequences or what hostile work environment even meant

    o Prisoners Dilemma Issue: how to increase the payoff so eliminate collective action problem (make it advantageous for women to collectively bargain terms); relative standing poses problem (want to get more so will give up right to non-hostile work)

    o Government Intervention as Solution to the problem: Once sexual harassment became a legal claim, it was necessary to change employers and workers preferences so that sexual harassment viewed negatively and that everyone had a right to a non-hostile work environment

    JS Mill: Similar to Stockholm syndrome-cannot adapt preferences to justify hostile work environment; legal system must change employers preferences

    Pros of Freedom of Contract 1. Autonomy Argument: Autonomy is fundamental to human beings and shouldnt

    restrict humans autonomy

  • 2. Consequentialist Argument: contracts have mutual advantage; would be wasteful to interfere in contract (ex: having a job is better than no job) o People know their own preferences best and have best incentive to provide for

    themselvesfreedom of contract results in the best outcomes o JS Mill Coercion Argument: Tyranny of majority is worse than tyranny of individual o Hayek argument: govt might not always know why something in society is

    successfulmust leave room for experiments and preserve individual liberty

    Cons of Freedom of Contract (Reasons to Limit) 1. Externalities: Third Party effects-people affected by decisions they dont consent to o Single owner idea is used to analyze externalitiesjustification for legal rules (L,

    property) to limit contractual freedom o Moralisms: utility harm to society from something it deems immoral Might explain why consent isnt a defense for murder

    o Calabreisi argument: contract oneself to slavery o Commodification of humans: point is that we are no longer repulsed by this

    2. Capacity: not everyone thought to have capacity to make contracts to look after their own interests o Optimism Bias: People tend to believe the things that make them better off o Women & Education: Women unable to demand rights b/c they lacked education and

    were trained by society to be submissive; voluntarily engage in contract o Faulty Telescope: People devote too little concern to future consequences of their

    actions; not able to adequately measure the risks of dangerous jobs o Adaptive Preferences: we adapt preferences to reduce frustration in our lives

    3. Information Scarcity: People dont get all of the info in the agreement (possible justification for govt intervention) o Self-serving bias: people dont process info rationally (optimism bias)

    4. Coercion: o Example: person would die from starvation w/o job o Distinction b/w threats (taking something away from choice set) and offers (adding

    something); threat is coercion, an offer is not o Baseline problem: defining coercion (threat/offer) depends on where to draw the

    line; problem is determining what people are legally entitled to 5. Exploitation/Unequal Bargaining Power: one party gets less than he should have o Unequal bargaining power by itself isnt enough (all contracts due to unequal

    bargaining power)must show that party doesnt have other alternative o If one isnt made worse off, maybe they just arent getting more of contract surplus o Compensation for Risk: when risk is known, employer must compensate labor Assumes that labor understood risk and included it in his assessment; also

    assumes the labor has non-risk employment alternative (higher income less willing to compensated for risk)

    This is example of information scarcity 6. Self-Control: some people are very impulsive b/c of high discount rates (little value for

    money in the future)faulty telescope issue o Troubling when peoples preferences are inconsistent o Need to change payoffs so that larger, later option is more attractive

  • 7. Collective Action Problem: class would be better off if they could cooperate rather than individually defect (fears that others will not cooperate) o Playing it safe puts you at disadvantage if everyone takes risk and benefits o Tragedy of commons scenario

    Game Theory Strategic behavior: make move based on what other party makes which is dependent on

    the move that you will make

    Prisoners Dilemma Deny Confess

    Deny -1, -1 -10, 0

    Confess 0, -10 -5, -5

    In equilibrium, both parties confess (not sure whether other will deny)not collectively

    optimal outcome (better if the both cooperatePareto efficient outcome) Need for govt regulation or contract to ensure that both parties will cooperate Relative standing in society drives prisoners dilemma o Each baker is concerned about how many wages he makes in relation to other o Absolute value of dollar + absolute value gained through going up social ranks =

    incentive to work an hour longer o Problem is that everyone thinks that way and engages in same behavior (both players

    work 12 rather than 10 hours and wages dont increase) One shot game v. repeated interactions: in repeated interactions, it is possible to sustaint

    cooperation until the very last move (tit for tat strategy-similar to stag hunt); possibly that there is no need for govt intervention

    With more than 2 players, leads to same situation but looks like tragedy of the commons

    Other Games Chicken

    Wait Proceed

    Wait 0,0 0,2

    Proceed 2,0 -5, -5

    o Prisoners dilemma can only be solved through legal rules but chicken can be solved through private actionstructure of situation will induce correct behavior

    Stag Hunt Deny Confess

    Deny 0,0 -10, -1

    Confess -1, -10 -5, -5

    o No dominant strategy: each player imitates previous players move o No incentive to liebetter strategy to assure other player to cooperate o Example: bank run (stable, everyone cooperates and better off w/ money in bank) o Not as much need for legal rules as long as players can assure each other to cooperate

  • V. Market Failure, Regulation, Coase

    CAP and Public Goods Public Goods: goods that have external benefits, are non-rivalrous and non-excludable,

    information on public goods is available to everyone o Market will usually undersupply these goods (hard to give incentive to people to

    supply goods if they have to pay and everyone benefits) o Govt regulation (via taxes, subsidies), charities, norms can help solve this problem o Environmental and IP laws are all public goods and are regulated through legal

    precedent (if evolution of precedent leads to better law that is better adopted to the current situation, this helps clarify that law is for everyone and cant exclude)

    Prisoners Dilemma, Tragedy of the Commons, Public Goodsindividually rational decisions that dont lead to collectively beneficial outcomes

    Coase Theorem

    Basic Idea Where transaction costs are zero, rights should naturally flow to highest bidder b/c parties will bargain for the most efficient outcome

    Barriers to Bargaining 1. Multiple Parties: more parties equal higher TCs; holdout problem 2. CAP: fear of free-riding (contracts can solve this problem) 3. Externalities: external costs v. external benefits

    Critiquing Coase 1. Incommensurability

    o Sometimes we cannot assign dollar values to certain things o Rohits point: usually not true b/c people substitute infinite value for something

    when it is very valuable 2. Willingness to Pay (WTP) Willingness to Accept (WTA)

    o Coase assumes one value for any good/right; default rule doesnt have any effect o Farn: people assign higher value to thing they would sell than buy (WTA > WTP) o Wealth Effects: if wealthier, have higher willingness to accept (thing they own

    makes them feel even more wealthy-need something else to preserve wealth) o Endowment Effects: sentimental connection to thing increases its value o People treat opportunity costs as less real than out-of-pocket costs, BUT this

    difference doesnt undermine Coases application in a situationin the end, it depends on the actual difference between WTP and WTA

    3. Stickiness o Caused by gap b/w WTP and WTA o Legal rights might be stickier than what Coase suggests and hard to tell if we

    reached right outcome if there is stickiness in entitlement

  • Pebble Mine-Prisoners Dilemma + Coase o In situation where there is one fishing company and one mining company, socially

    optimal outcome is achieved with no L and damages rule even without bargaining; need bargaining to reach socially optimal outcome for injunction

    No Bargain Bargain Distribution

    No Remedy No PCE, F No PCE, F 2000,300

    Damages Remedy No PCE, F No PCE, F 1900,400

    Injunction

    Remedy

    PCE, No P No PCE, F NB: 1400,400

    B: 1401-1899, 401-899

    o In situation where there are 10 or 100 fishing companies and one mining company,

    socially optimal outcome is achieved with damages rule and injunction without bargaining; need bargaining to reach socially optimal outcome for no L

    No Bargain Bargain Distribution

    No Remedy No PCE, F PCE, No F NB: 2000, 3000

    B: 1401-2001,

    Damages Remedy PCE, No F PCE, No F 1400, 4000

    Injunction Remedy PCE, No F PCE, No F 1400-4000

    o Implications:

    1. TCs block bargaining solution and goal for law is to reduce TCs 2. Externalities dont justify intervention if TCs are low but do when TCs are high 3. Damages remedy works in both cases (always leads to socially optimal solution)

    because it mimics bargain (supplies to the party the minimum to get its consent) In contrast, No L and injunction are property rules (assign entitlements) and do

    not mimic bargaining rule Calabreisi: across domains of law, there is fundamental choice b/w property and L

    rule; in practice, damages rule can be harder than injunction b/c courts have to figure out the correct level of damages

    VI. Egalitarianism

    14th Amendment Equal Protection

    Conditions for Determining Which Test Potential state government equal protection violations evaluated under (1) strict

    scrutiny or (2) rational basis testboth test how well means fit ends o SS is triggered if (considered fatal in fact)Highest level

    Govt classification invokes suspect class (ex: race, national origin) Infringes on a fundamental right (sort of determined by Constitution)

    o RBT for almost everything elselowest level o Intermediate scrutiny is possible

  • Tests 1. Strict Scrutiny: must serve compelling state interest and means are narrowly tailored to

    that interest (very few things survive SS) 2. Intermediate Scrutiny: Brennan requires substantial govt interest o Focus on the legitimate ends of state (very demanding with appellant evidence)

    3. Rational Basis Test: assesses whether govt classification is reasonably related to achieving a legitimate govt interest (usually survives) o Reasonably related: govt doesnt assess whether means will actually achieve end

    Cases Pyler v. Doe o Intermediate scrutiny applied: Not allowing education to illegal immigrant children doesnt actually achieve

    interest of dis-incentivizing illegal entry Court challenges whether basis was real basis by asking why other policies

    associated with X rationale were not implemented (idea that they will leave state and not contribute to the economy)

    KEY ARGUMENT: deny education could lead to a sub-class of illiterates that could lead to negative externalities (crime, welfare, unemployment) Focus on consequences of classifications rather than what motivates class

    San Antonio v. Rodriguez o Rational Basis Test applied: Court doesnt apply SS b/c no suspect class or fundamental right Court considered that TX funding scheme is reasonably related to achieving states

    interest of funding education (income disparities not a factor considered in test)

    Rawls Theory of Justice

    The Theory 1. Each person has equal claim to scheme of basic rights and political liberties are to be

    guaranteed at fair value (must be consistent with liberties everyone believes in) 2. Social and economic inequalities are justified when: o Attached to positions open to all under conditions of fair equality of opportunity Possibly not consistent with Rodriguez b/c education viewed as nec for fair equality

    of opportunity to position of office o Difference principle: they are to be the greatest benefit to the least advantaged

    members of society

    Notes Fair value required to prevent advantaged from banding together to exclude

    disadvantaged from limited public space Under Coase, possible to satisfy difference principle through bargaining and wealth re-

    distribution (transfer wealth from middle and most advantaged to least advantaged) Origin: People would agree on original position under veil of ignorance (they dont

    know their position in society or strengths and weaknesses)

  • o Utilitarianism wouldnt be agreed upon b/c it justifies oppression of minorities if it is outweighed by benefit to majority; if people dont know social position, they wont risk being minority in utilitarianism (would rather choose principles of justice)

    Difference Principle One extreme: strict egalitarianismclearly satisfies DP Can justify inequality under DP if there is baseline assumption that people will work

    harder to earn more $$$ Doesnt speak to the middle class Compared to Pareto efficiency: o Can be consistent; however, if middle class made worse off, satisfies DP but not PE o If least advantaged is left the same, then PE but doesnt satisfy DP

    Nozick

    Entitlement Theory 1. Original Acquisition of Holdings: justice in acquisition 2. Transfer of Holdings: justice in transfer 3. Rectification of Injustice in Holdings: try to restore what wouldve been the case if the

    injustice hadnt occurred An outcome as a result of just transfers is just; just transfer is voluntary (coercion not just)

    Debate with Rawls 1. Rawls is concerned with starting and end points (DP) where as Nozick is concerned with

    procedure (ET) 2. Distribution o Rawls: natural endowments are arbitrary, so they get no moral weight o Nozick: disagrees; one justly acquires wealth if born with it Its your own body and its slavery to claim your natural attributes arent yours