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ELEMENTS D2 & D1 POWER POINT SLIDES

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1 ELEMENTS D2 & D1 POWER POINT SLIDES
Class #13 Friday, September 29, 2016 National Coffee Day

2 MUSIC (to accompany demsetz): The Beatles MAGICAL MYSTERY TOUR (1967)
D1/D2 Lunch Today Meet on 12:30 Fernandez * Gonzalez Molasky * Rub Seale * Seals * White Pass-Fail Briefs 12:20 Today: Sign-Up Sheet Posted for URANIUM Meetings 3:00 Today: OXYGEN Written Manning Briefs Due [Teams that Haven’t: Sign-Up for Your Meetings ASAP]

3 1L YEAR & HARRY POTTER TIME

4 SCHEDULE ADJUSTMENTS: ELEMENTS et al.
To Avoid Rushing & Ensure Basic Skills: We won’t do third substantive unit We’ll do more exam-style problems Specific Adjustments: No Friday Afternoon or Weekend Make-Ups Maybe additional long joint Fridays Week before T-Giving: D1 + D2 Monday Only Week after T-Giving: D1 + D2 Tuesday Only Brief Note on Fall Break (Ignore 2Ls) QUESTIONS?

5 EXAM ADJUSTMENT: ELEMENTS FINAL
Traditional Format: Three Units  Three Equally Weighted Qs Q1 & Q2: Single Fact-Pattern (Not Animals) Q1 = Issue-Spotter Assume Animals Cases (ACs) Govern Covers Two or Three of 1st Possession. Escape, Custom Q2: Analogy Q: Discuss Whether ACs are Good Tool for this Type of Problem

6 EXAM ADJUSTMENT: ELEMENTS FINAL
Traditional Format: Three Units  Three Equally Weighted Qs Q1 & Q2: Issue-Spotter & Analogy This Year Only Two Units Yields One Long Fact Pattern Three-Part Issue-Spotter: (a) 1st Possession & (b) Escape & (c) Custon Each 30 min & 20% Analogy Q: 60 min & 40% I’ll Give You Directions in Advance & Lots of Examples & Opportunities for Qs

7 THINKING ABOUT & PREPARING FOR ISSUE-SPOTTING EXAM Qs
Generally: Exam-Taking Workshops: Nov. 6 & 7 Prof’s Perspective & Sunken Boat Hypo Technical Meaning: Abandonment 1st Possession Problems Escape Problems

8 DQ1.27: Thinking About Sunken Boat as Exam Q
Should the result in Shaw be the same if the fishermen used a sunken boat instead of a net to trap the fish? Assume the boat retains the same percentage of fish that enter it as the net in Shaw. (E.g., <4% of fish that enter escape both nets & boat) Take My Hypothetical as I Give It to You Not helpful to explain why it couldn’t work. Not helpful to ignore because you don’t like it. I get to make up the rules.

9 DQ1.27: Thinking About Sunken Boat as Exam Q
Should the result in Shaw be the same if the fishermen used a sunken boat instead of a net to trap the fish? Assume the boat retains the same percentage of fish that enter it as the net in Shaw. (E.g., <4% of fish that enter escape both nets & boat) Look for Comparisons Relevant to Doctrine Boat could have been stolen (so could net) No way to raise boat (must be or pointless to use it to catch fish)

10 STATE v. SHAW DQ1.27: Krypton
Marking/Notice of Claim to Others is an important recurring policy concern See Shaw test part 2: “so maintain his control as to show that he does not intend to abandon” See Pierson: Mortal wounding + pursuit OK because hunter “thereby manifests an unequivocal intention of appropriating the animal” Could address w sunken boat with clear sign on buoy attached to boat.

11 STATE v. SHAW DQ1.27: Krypton
Marking/Notice of Claim to Others is an important recurring policy concern See Shaw test part 2: “so maintain his control as to show that he does not intend to abandon” See Pierson: Mortal wounding + pursuit OK because hunter “thereby manifests an unequivocal intention of appropriating the animal” NOTE: 1st Possession Cases DO NOT Make Notice to 2d Hunter Pivotal Pierson has notoice of Post’s chase, yet wins Wanie may not have notice of Liesners’ claim, but loses.

12 STATE v. SHAW DQ1.27: Krypton
Additional Reason to Treat Sunken Boat Differently May not want to reward trap that is dangerous to humans Net in Shaw is easily visible (28-foot square & top 4 feet above water) Sunken boat may not be visible so may be safety hazard to lake traffic if not very well marked I think always reasonable to believe a court will care about significant threats to human health & safety even if you have no case that raises these concerns in the relevant section of the cours

13 THINKING ABOUT & PREPARING FOR ISSUE-SPOTTING EXAM Qs
Generally: Exam-Taking Workshops: Nov. 6 & 7 Prof’s Perspective & Sunken Boat Hypo Technical Meaning: Abandonment 1st Possession Problems Escape Problems

14 Transition: Shaw to Escape (including GWA#1)
“Abandonment” of Property & Technical (Legal) Meanings of Terms

15 Technical Meaning of Terms
When people use a word or phrase in a specialized context, they often intend to employ only the meaning that is most relevant to, or most commonly used in, that context. Might be one of several common meanings. Might be different than meanings used in other contexts. Can call the definition that best fits a specialized context the “technical meaning” of the word or phrase, even when the context is not especially technical or scientific.

16 Technical Meanings of Terms
Three contexts in which people commonly use “technical meanings” of ordinary words/phrases: Sports Reporting Cooking Law. Use of technical meanings so familiar that you probably take it for granted in the contexts of sports reporting and/or cooking. An example …

17 Technical Meanings of Terms: To “WHIP”
Webster’s lists 15+ definitions of this verb including “To strike forcefully with a slender lithe instrument, especially as a punishment” “To move very quickly” (e.g., whip across a highway) “To drive or urge on (as if using a whip) “To stir up or incite” (e.g., whip a crowd into a frenzy) Obviously derived from uses of the object called a “whip” consisting of a handle and a lash.

18 Terms with Technical Meanings: To “WHIP”
Webster’s lists 15+ definitions of this verb BUT When a sports reporter says that “the 49ers whipped the Rams,” we know from the context that no actual whips were used. Here, the relevant definition must be: “To overcome or defeat decisively.”

19 Terms with Technical Meanings: To “WHIP”
Webster’s lists 15+ definitions of this verb BUT When a cookbook instructs us “to whip a cup of cream,” we know from the context that we don’t need to go buy a whip. Here, the relevant definition must be: “To beat into a froth using a utensil like a whisk or fork.”

20 Terms with Technical (Legal) Meanings
For your work in law, look out for situations where common words have technical legal meanings (like “duty” in Torts or “improvements” in Property) and make sure you memorize those meanings and use them where appropriate. E.g., …

21 Terms with Technical (Legal) Meanings To “Abandon” Property
Webster’s definitions of the verb “abandon” include: “to give up to the control or influence of another person” “to withdraw protection, support, or help from” “to give oneself over unrestrainedly” People commonly use the term very loosely: “He’s abandoned me!” can mean things like “forgotten about” or “ignores” or “favors someone else.”

22 Terms with Technical (Legal) Meanings To “Abandon” Property
Definitions of “abandon” include, “to give up with the intent of never again claiming a right or interest.” Use this definition in Elements, emphasizing Intentional decisions (v. careless or negligent acts); Meant to be permanent (v. temporary or of uncertain duration); and (Ideally) Clearly shown by a specific action or statement.

23 Terms with Technical (Legal) Meanings To “Abandon” Property
Definitions of “abandon” include, “to give up with the intent of never again claiming a right or interest.” Use this definition in Elements, emphasizing Intentional decisions (v. careless or negligent acts); Meant to be permanent (v. temporary or of uncertain duration); and (Ideally) Clearly shown by a specific action or statement. Enforcers: Fernand-onment

24 THINKING ABOUT & PREPARING FOR ISSUE-SPOTTING EXAM Qs
Generally: Practicing1st Possession Problems Group Written Assignment #1 2016 Final Exam Q DQ1.28 Escape Problems

25 GROUP WRITTEN ASSIGNMENT #1 Questions
Three Types of Qs Useful for Most Issue-Spotters I’ll Take Qs in Class Today & Tuesday/Wednesday 10/3-10/4 Monday 10/9 (Both Classes Meet Together) I’ll Take Qs By until Sunday 11:59 p.m. In Person until the End of Break on Mon 10/9 QUESTIONS?

26 2016 FIRST POSSESSION EXAM Q
Will be Posted Later Today as Part of Info Memo #2 Two Parts: Do One Each of Next Two Weeks in DF Good Sample for You Now b/c Close to Ordinary Animals Case Can Apply Virtually All Ideas except Mortal Wound Good Exercise in Reading Carefully , Using Facts Given & Following Directions

27 STATE v. SHAW DQ1.28: Krypton
Can you frame a single rule that makes sense of the results in Pierson, Liesner, and Shaw? Looking at 2 student submissions from prior classes For substance For clear concise writing I’ll go a little quickly b/c you can review slides in more detail later Note Possible Use on Tests: “It is possible to read the cases together to say …” “Applying this rule here, …”

28 STATE v. SHAW DQ1.28: Krypton
STUDENT #1: Property rights to a wild animal occur when a pursuer, who continues to pursue the animal and has no intent of releasing him back into the wild, has substantially rid the animal of his natural liberty as to render escape highly unlikely under normal circumstances.

29 STATE v. SHAW DQ1.28: Krypton
STUDENT #1: Property rights to a wild animal occur when a pursuer, [ii] who continues to pursue the animal and has no intent of releasing him back into the wild, [i] has substantially rid the animal of his natural liberty as to render escape highly unlikely under normal circumstances. Put in normal chronological sequence.

30 STATE v. SHAW DQ1.28: Krypton
Property rights to a wild animal occur when a pursuer …  A pursuer acquires property rights to a wild animal when the pursuer… Eliminating passive voice.

31 STATE v. SHAW DQ1.28: Krypton
A pursuer acquires property rights to a wild animal when the pursuer… [i] has substantially rid the animal of his natural liberty as to render escape highly unlikely under normal circumstances.

32 STATE v. SHAW DQ1.28: Krypton
A pursuer acquires property rights to a wild animal when the pursuer… [i] has substantially rid the animal of his natural liberty  Need both (a) & (b)??  (b) as to render escape highly unlikely (c) under normal circumstances.

33 STATE v. SHAW DQ1.28: Krypton
A pursuer acquires property rights to a wild animal when the pursuer… [i] has rendered escape highly unlikely (b) under normal circumstances. (Very clever idea)

34 STATE v. SHAW DQ1.28: Krypton
A pursuer acquires property rights to a wild animal when the pursuer [i] has rendered escape highly unlikely under normal circumstances; and [ii] continues to pursue the animal and (b) has no intent of releasing him back into the wild,

35 STATE v. SHAW DQ1.28: Krypton
A pursuer acquires property rights to a wild animal when the pursuer [i] has rendered escape highly unlikely under normal circumstances; and [ii] continues to pursue the animal and (Do you want to require (a) for traps/nets?) (b) has no intent of releasing him back into the wild

36 STATE v. SHAW DQ1.28: Krypton
A pursuer acquires property rights to a wild animal when the pursuer [i] has rendered escape highly unlikely under normal circumstances; and [ii] continues to pursue the animal and (b) has no intent of releasing him [it] back into the wild (Do you want test of pure intent w/o actions?)

37 STATE v. SHAW DQ1.28: Krypton
A pursuer acquires property rights to a wild animal when the pursuer [i] has rendered escape highly unlikely under normal circumstances; and [ii] continues to pursue the animal or otherwise to show he has no intent of releasing it. Takes care of traps & eliminates test based on pure intent.

38 STATE v. SHAW DQ1.28: Krypton
STUDENT #2: A wild animal is deemed property of a person pursuing it if he through his actions made escape of the animal highly unlikely and through his actions has substantially decreased the likelihood of escape since the outset of the pursuit.

39 STATE v. SHAW DQ1.28: Krypton
STUDENT #2: A wild animal is deemed property of a person pursuing it if he [i] through his actions made escape of the animal highly unlikely and [ii] through his actions has substantially decreased the likelihood of escape since the outset of the pursuit. Pronoun ambiguity plus passive voice.

40 STATE v. SHAW DQ1.28: Krypton
A wild animal is deemed property of a person pursuing it if he …  A person acquires property rights in a wild animal if the person … through his actions made escape of the animal highly unlikely and through his actions has substantially decreased the likelihood of escape since the outset of the pursuit. How else would you accomplish these tasks?

41 STATE v. SHAW DQ1.28: Krypton
A person acquires ppty rts in a wild animal if the person … made escape of the animal highly unlikely and has substantially decreased the likelihood of escape since the outset of the pursuit. Interesting idea, BUT Hard to prove Not clear would lead to Pierson result Not clear how would apply to traps/nets

42 STATE v. SHAW DQ1.28: Krypton
I’ll do a more extensive write-up of the submissions from this & prior years and put in a future Information Memo. Qs on DQ1.28?

43 THINKING ABOUT & PREPARING FOR ISSUE-SPOTTING EXAM Qs
Generally: 1st Possession Problems Escape Problems Techniques are Same Practice Midterm = Escape Problem So I can use existing materials. You will use Manning, Mullett, Albers Schedule revisions posted over the weekend (We’ll slide Kesler to after Midterm) Facilitating Coverage of Escape Cases

44 Facilitating Coverage of Escape Cases
Recheck & Follow Suggested Briefing Form Use Glossary for Manning & Mullett Do Self-Quizzes: I’ll Explicitly Ask Assigned Panels Related Self-Quiz Qs Do Not Talk in Class…

45 Facilitating Coverage of Escape Cases
Recheck & Follow Suggested Briefing Form Use Glossary for Manning & Mullett Do Self-Quizzes: Do Not Talk in Class, Even in Parseltongue

46 September Fog Calisthenics A Thousand Words
Script for an Ordinary School Year One Month Into Law School: Three Things to Think About September Fog Calisthenics A Thousand Words

47 The Rhythm of the First Year
Same at Every School Where I’ve Taught Same Every Year But One Since 1988

48 The Rhythm of the First Year
Three Typical Fall Semester Low Points: Mid-September Mid-October Mid-November

49 The Rhythm of the First Year: The Mid-September Crisis
You Have Never in Your Life Worked So Hard for a Whole Month Without Feeling on Top of Things!!! Common to Start to Worry That …

50 The Rhythm of the First Year: The Mid-September Crisis
I’m the Stupidest Person Here & They Let Me In By Mistake

51 The Rhythm of the First Year: The Mid-September Crisis
KEEP IN MIND: We’ve Already Discussed: You’re Learning New Language by Immersion

52 The Rhythm of the First Year: The Mid-September Crisis
KEEP IN MIND: We’ve Already Discussed: You’re Learning New Language by Immersion Perception of “Hard” v. “Easy” Questions

53 The Rhythm of the First Year: The Mid-September Crisis
KEEP IN MIND: Learning New Language by Immersion Perception of “Hard” v. “Easy” Questions Nature of Socratic Method: Profs Control Discussion & Decide What’s “Relevant”

54 The Rhythm of the First Year: The Mid-September Crisis
KEEP IN MIND: Second Year Students (No Secret 1L Graveyard)

55 The Rhythm of the First Year: The Mid-September Crisis
So Let Yourself Believe the September Fog is Normal and Nearly Universal

56 The Rhythm of the First Year: The Mid-September Crisis
Almost All of You Will be Worried About Something Else Four Weeks from Now!

57 The Rhythm of the First Year The Mid-September Crisis
Uranium Radium Oxygen Krypton

58 One Month In: Three Things to Think About
September Fog Calisthenics A Thousand Words

59 The Rhythm of the First Year & Elements
Common Mid-September Concern: This class is fun and all, but does any of this really matter?

60 The Rhythm of the First Year
Same at Every School Where I’ve Taught Same Every Year But One

61 FALL 2001

62 Pierson v. Al-Qaeda???? FALL 2001

63 The Rhythm of the First Year & Elements
Analogy to Calisthenics

64 The Rhythm of the First Year & Elements
Analogy to Calisthenics Apply Language of Case to New Facts Compare Facts of Case to New Facts Apply Policy Concerns to New Facts Identify Key Similarities & Differences

65 The Rhythm of the First Year: The Mid-September Crisis
KEEP IN MIND: Analogy to Calisthenics: You Are Starting to Use New Muscles, So You’ll Be a Little Sore

66 One Month In: Three Things to Think About
September Fog Calisthenics A Thousand Words

67 The Rhythm of the First Year
Staying Motivated

68 The Rhythm of the First Year Staying Motivated
Fall 2014: Ray Rice, the Elevator Videotape & the Failure of Words

69 The Rhythm of the First Year Staying Motivated
Storytelling Will Be Your Responsibility

70 The Rhythm of the First Year Staying Motivated
Storytelling Will Be Your Responsibility Development Project

71 The Rhythm of the First Year Staying Motivated
Storytelling Will Be Your Responsibility Development Project Parental Rights

72 The Rhythm of the First Year Staying Motivated
Storytelling Will Be Your Responsibility Development Project Parental Rights Environmental Partnership

73 The Rhythm of the First Year Staying Motivated
Storytelling Will Be Your Responsibility Development Project Parental Rights Environmental Partnership Less Visible Assault

74 The Rhythm of the First Year Staying Motivated
Storytelling Will Be Your Responsibility Development Project Parental Rights Environmental Partnership Less Visible Assault Remember the Client Who is Waiting for You!!

75 Back to Work!!

76 Shaw  Demsetz: Intro to Externalities
KRYPTON DQ 1.29 & URANIUM DQ1.31

77 STATE v. SHAW DQ1.29(a): Krypton
Assume net-owners have no enforceable rights in fish caught in their nets until they physically remove the fish from the nets. Thomas chooses to take fish from the owners’ nets. Who might be affected by this decision? Which of these effects is Thomas likely to take into account when deciding whether to take the fish?

78 EXTERNALITIES Costs or benefits external to a decision-making process
Must be with reference to particular decision or activity. Helpful to start by identifying decision-maker

79 EXTERNALITIES Costs or benefits external to a decision-making process Must be with reference to particular decision/activity Helpful to start by identifying decision-maker If decision-maker considers a cost, but chooses to absorb it, not an externality E.g., Thomas considers own exertion necessary to take from nets, but may decide to take anyway

80 STATE v. SHAW DQ1.29(a): Krypton
T Likely to Consider Some Likely Externalities Own Exertions/Cost of Equipment, etc. Benefits to Dependents Benefits to Likely Purchasers Threats of Self-Help by Net-Owners (if any) Costs to Net-Owners, Their Dependents, Their Purchasers Costs to Net Manufacturers Effect on Ecosystem (note might be benefits if “theft” discourages use of big nets) Benefits to Suppliers of Substitutes

81 EXTERNALITIES Examples from outside this problem?
Costs or benefits external to a decision-making process With reference to particular decision or activity Helpful to start by identifying decision-maker Examples from outside this problem? Me not trimming my tree Other examples? URANIUMs Volunteers

82 Questions on DQ1.29(a) or Externalities?
STATE v. SHAW DQ1.29(a) & 1.31 Questions on DQ1.29(a) or Externalities?

83 STATE v. SHAW DQ1.29(b) Assume Net-Owners have no enforceable property rights in fish caught in their nets: If the fish are worth more to the net-owners than to Thomas, presumably there is some amount of money they could contract to pay him to leave the fish alone that would leave all parties better off than before the contract.

84 STATE v. SHAW DQ1.29(b) Krypton
What obstacles stand in the way of the parties entering contract where T promises not to take fish from nets? Assume cost to net-owner is $500/wk & benefit to Thomas is $300/wk. Assume One-on-One Negotiation.

85 STATE v. SHAW DQ1.29(b) Krypton
Costs of One-on-One Negotiation Include: Investigation Costs (e.g., find relevant parties; determine relevant costs/values; legal research) Bargaining Costs (e.g., time, representation) Strategic Behavior (negotiating postures) Enforcement Costs

86 STATE v. SHAW DQ1.29(b) What obstacles stand in the way of the parties entering contract where T promises not to take fish from nets? Assume cost to net-owner is $500/wk & benefit to Thomas is $300/wk. Additional Obstacles if Multi-Party Negotiation (multiple net-owners; multiple fish-takers)?

87 Additional Costs of Multi-Party Negotiation:
STATE v. SHAW DQ1.29(b) Additional Costs of Multi-Party Negotiation: Free-Riding Holdouts Organization/Management Costs Compare Agreement on Restaurant & Movie: Two People? Four People? Your Parents, Your Siblings, Everyone’s Spouses & Kids??

88 Collectively: “Transaction Costs”
STATE v. SHAW DQ1.29(b) Collectively: “Transaction Costs” Investigation Costs Bargaining Costs Strategic Behavior Enforcement Costs Free-Riding Holdouts Organization/Management Costs

89 Transaction Costs Costs of Reaching Agreements
Can Prevent Parties from Reaching Bargains that are “Efficient” (i.e., Would Make Everyone Better Off)

90 Questions on DQ1.29(b) or Transaction Costs?
STATE v. SHAW DQ1.29(b) Questions on DQ1.29(b) or Transaction Costs?

91 INTERNALIZING EXTERNALITIES
Changing Rules, Laws or Circumstances to Force Decision-Maker to Take External Costs or Benefits Into Account Generally Imposed from Outside; Not Done by Decision-Maker (Contrast “Internalizing” in Psychology)

92 INTERNALIZING EXTERNALITIES
Changing Rules, Laws or Circumstances to Force Decision-Maker to Take External Costs or Benefits Into Account. Generally Imposed from Outside. Beneficial Because Means Price of Activities Will Better Reflect Real Costs & Benefits Pollution costs  Damages & Regulation Charitable services  Subsidies/Gov’t Operation

93 INTERNALIZING EXTERNALITIES
Changing Rules, Laws or Circumstances to Force Decision-Maker to Take External Costs or Benefits Into Account; Generally Imposed from Outside. Several Ways to Do: Require Payment of Damages or Fees (or Subsidize) Regulate Activity: Criminalize or Limit (or Require) Private Negotiation (“Bribes” to Do or Not Do Activity) (BUT Limited by Transaction Costs)

94 DEMSETZ ARTICLE DQ1.31: Uranium
Examples of internalizing externalities from outside the reading?

95 DEMSETZ FIRST THESIS (Descriptive)

96 DEMSETZ FIRST THESIS New property rights tend to develop “when the gains of internalization become larger than the cost of internalization.”

97 DEMSETZ 1st THESIS: DQ1.33 New ppty rts tend to develop “when the gains of internalization become larger than the cost of internalization.” Gains = Having more effects considered by decision-maker, presumably leading to: Reduction in harmful effects AND/OR Increase in beneficial effects Maximum Potential Gain = Total elimination of externalities (unlikely)

98 DEMSETZ 1st THESIS: DQ1.33 Uranium
New property rights tend to develop “when the gains of internalization become larger than the cost of internalization.” What are relevant “costs”? Focus on people who might want to change the game (force internalization), not on decision-maker who is source of externalities.

99 DEMSETZ 1st THESIS: DQ1.33 Uranium
New property rights tend to develop “when the gains of internalization become larger than the cost of internalization.” What are relevant “costs”? Costs of bargaining privately Costs of collectively creating new rules (can be expensive) Multi-party negotiation Legislation or agency regulation

100 If harm from externalities > cost of change  change in rule.
DEMSETZ FIRST THESIS New property rights tend to develop “when the gains of internalization become larger than the cost of internalization.” If harm from externalities > cost of change  change in rule.

101 DEMSETZ FIRST THESIS New property rights tend to develop “when the gains of internalization become larger than the cost of internalization.” = If cost of externalities > cost of change  change in rule Rough Approximation (Not Precise Math)

102 DEMSETZ FIRST THESIS New property rights tend to develop “when the gains of internalization become larger than the cost of internalization.” = If cost of externalities > cost of change  change in rule Rough Approximation (Not Precise Math) Resulting Change in Rule Unpredictable E.g., Legislature responding to public outcry must do something Lots of possibilities; legislators might not make good choices


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