Cole, Daniel and Peter Grossman. Principles of Law & Economics. 2^nd ed. Wolters Kluwer. 2011. ISBN:  9781454803959

This course uses the tools of microeconomic analysis to investigate the legal system of the United States. A variety of specific topics are covered, including property rights, contracts, tort law, and crime and punishment.

Upon completion of this course the student will

1. Be familiar with the basic economic concepts and institutions that are crucial to the understanding of the economic analysis of the law.
2. Be familiar with the legal institutions that make up the American legal system and the process by which laws are made.
3. Be able to explain the importance of the “rule of law.”
4. Be able to explain what economic analysis has to offer the legal system
5. Understand the history and evolution of the field of Law & Economics and the different perspectives it offers.
6. Be able to explain the crucial importance of Ronald Coase’s work to the filed of Law & Economics
7. Appreciate the economist’s approach to property law, including different views of how property can be acquired and why property rights need to be protected.
8. Be able to explain the difference between strict liability and nuisance law and the possible remedies for violations of property rights.
9. Explain the different ways in which limits have been placed on property rights -why they are there and their economic consequences.
10. Understand the nature of the tort law system in the U.S. including the idea of precaution and negligence.
11. Be able to explain the emergence of strict liability as a replacement for negligence in tort law and the consequences of this change.
12. Understand the arguments for and against tort reform and be familiar with the results of reform experiments in the U.S. and around the world.
13. Explain the elements of a contract and appreciate the crucial importance of contracts to the functioning of an economic system.
14. Explain reasons for breach of contract and the remedies used when breaches occur.
15. Understand the notion of efficient breach and the alternative approaches to calculating damages.
16. Understand the differences between criminal law and civil law.
17. Be able to explain why zero crime is an unattainable goal.
18. Understand the different approaches to deterring crime.
19. Be familiar with the analysis of the war on drugs, gun control laws, and the death penalty.
20. Will be able to analyze current news articles relating to Law and Economics using the tools presented in the class.