Business Associations
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Steinbuch 2008 |
Business Associations
|
Steinbuch Spring 2008 |
|
Chapter 1: Introduction to the Law of Enterprise Organization
* Efficiency and the Social Significance of Enterprise Organization, Public policy
* Wealth Creation and the Corporate Form of Organization
* Corp law deals with the creation and governance of the private legal entities that are the principal economic actors in the modern world
* Dominates in all instances where technology creates economies of scale
* Balancing several goals
* Allow parties to do what they want to do in business
* Protecting people both inside/outside business enterprise
* What do we mean by Efficiency?
* economic efficiency: the principal standard by which corporate law should be evaluated; elevation of utility; a subjective perspective
* the ‘American way of business’ is accepted argument today, but not whole argument for this nature
* address problems of having a small group of people run a business that effects thousands
* Pareto Efficiency: a given distribution of resources is efficient when, and only when, resources are distributed in such a way (within a given group or territory) that no reallocation of resources can make at least one person better off without making at least one other person worse off
* Happens only through voluntary exchange
* These transfers are those that are certain to increase social welfare starting from a fixed starting point; legitimacy of this distribution is often contested
* Bad way to evaluate/criticize law of ent org.
* Kaldor-Hicks Efficiency: what we refer to when say ‘efficiency’
* Actual payment of any compensation is NOT stipulated in this def
* Because information is imperfect and transactions are costly,...
Business Associations
|
Steinbuch Spring 2008 |
|
Chapter 1: Introduction to the Law of Enterprise Organization
* Efficiency and the Social Significance of Enterprise Organization, Public policy
* Wealth Creation and the Corporate Form of Organization
* Corp law deals with the creation and governance of the private legal entities that are the principal economic actors in the modern world
* Dominates in all instances where technology creates economies of scale
* Balancing several goals
* Allow parties to do what they want to do in business
* Protecting people both inside/outside business enterprise
* What do we mean by Efficiency?
* economic efficiency: the principal standard by which corporate law should be evaluated; elevation of utility; a subjective perspective
* the ‘American way of business’ is accepted argument today, but not whole argument for this nature
* address problems of having a small group of people run a business that effects thousands
* Pareto Efficiency: a given distribution of resources is efficient when, and only when, resources are distributed in such a way (within a given group or territory) that no reallocation of resources can make at least one person better off without making at least one other person worse off
* Happens only through voluntary exchange
* These transfers are those that are certain to increase social welfare starting from a fixed starting point; legitimacy of this distribution is often contested
* Bad way to evaluate/criticize law of ent org.
* Kaldor-Hicks Efficiency: what we refer to when say ‘efficiency’
* Actual payment of any compensation is NOT stipulated in this def
* Because information is imperfect and transactions are costly,...