ESF:MPP_EACP Economic analysis of civil law - Course Information

MPP_EACP Economic analysis of civil law

Extent and Intensity

2/0/0. 4 credit(s). Type of Completion: zk (examination).

Teacher(s)

JUDr. Dušan Tříška, CSc. (lecturer)
Ing. Hana Lipovská, Ph.D. (lecturer)

Guaranteed by

JUDr. Dušan Tříška, CSc.
Department of Law – Faculty of Economics and Administration
Contact Person: Lenka Hráčková
Supplier department: Department of Law – Faculty of Economics and Administration

Timetable

Wed 14:00–15:50 P304

Prerequisites

The course builds on the basic knowledge in the area of: basics of private law (New Civil Code). Students get the above mentioned knowledge in the following course: the Introduction to Law. Note:Students can meet all the demands placed on them within the scope of economic analysis of civil law without completed course the Introduction to Law provided intensive self-study under the guidance of a teacher .

Course Enrolment Limitations

The course is also offered to the students of the fields other than those the course is directly associated with.
The capacity limit for the course is 20 student(s).
Current registration and enrolment status: enrolled: 0/20, only registered: 0/20, only registered with preference (fields directly associated with the programme): 0/20

fields of study / plans the course is directly associated with

there are 26 fields of study the course is directly associated with, display

Course objectives

The main objective of the the Economic Analysis of Civil Law is to introduce the economic analysis of the law as a method of access to the law , which measure the costs and benefits. This can be used in the interpretation and application level. Another goal of this interdisciplinary subject is to show students that the method of costs and benefits is possible to use to analyze all the legal rules of the private sector. The course should contribute to a better understanding the economic context of the law and realization that behind many legal standards is economic thinking , or what can be called a common sense.

Learning outcomes

The student will not only have a broader legal consciousness after completing the subject, but he/she will also think in a broader social ties and contexts, he/she will make decisions within the legal framework, he/she will save time and money thanks to the knowledge of what rational decisions are being supported by a community treaty called Law. Student will be able to: - describe the history of economic analysis of law in the US and Europe; - explain what microeconomic theories can be used in creation, application and interpretation of legal rules; - use the method of economic analysis of the law for the application and interpretation of legal standards; - analyze the issue of externalities and clarify the need for their internalization (the transfer of externalities to the subject which created them); - analyze different forms of ownership from the perspective of efficiency and distribution; - analyze contractual law in terms of effectiveness; - to apply the Learned Hand rule in the tort law; - describe the family-law institutes from the economic point of view; - explain how labor law overcomes with greater or lesser successes labor market shortcomings such as the asymmetry of information of the contracting parties and the market power of the employer; - analyze the key supply and demand factors affecting the efficiency of the judicial system; - identify the economic thinking behind legal rules; - apply rational choice theory when choosing a dispute settlement method (litigation, mediation, arbitration, conferences with lawyers, etc.); - proceed efficiently when concluding contracts; - orientate at elementary level in selected legal rules of civil law (legal institutes of civil and procedural law, commercial law, labor law and family law); - use the methodology of economic analysis of the law for its own scientific work.

Syllabus

• 1. WHAT IS THE ECONOMIC ANALYSIS OF LAW? (Law and Economics, the difference in the thinking of lawyers and economists, positive and normative economic analysis of law, historical background, economic analysis of law in the Czech Republic) Students are introduced to the economic analysis of law as a method of interpretation and application of the law by using the criteria of cost-benefit and outlined the role of this method in the Czech legal system. Briefly describes the genesis of this method in the US and Europe, introduced the main representatives of the economic analysis of law and their major works.
• 2. RATIONALITY, VALUE, EFFICIENCY (Axiom "Man is a rational and wants to maximize his/her utility," the three pillars of rational decision-making, the theory of self-interest, controversy about rationality, efficiency - Pareto improvement, Pareto efficiency, Kaldor-Hicks criterion) Students become familiar with the terms rationality, utility, effectiveness and homo economicus as a rational man who is trying to maximize his/her benefit.
• 3. SOME ISSUES OF PROPERTY RIGHTS AND ECONOMIC ANALYSIS (The legal theory of property rights, the shift of resources to a more valuable benefit, transaction costs, a problem common grassland externalities, Coase theorem, ownership rights vs. the law of obligations) Students are explained the role of property rights in terms of efficient allocation of resources. In the course there are analyzed the effects of different forms of ownership on efficiency and distribution. Students are introduced into the issue of externalities and the need for their internalisation. Students get to know the Coase theorem.
• 4. CONTRACTUAL RIGHT AND ECONOMIC ANALYSIS (The concept of a contract, Why the parties conclude a contract?, freedom of contract, complete and incomplete contract and transaction costs, rebus sic stantibus, exchange of information, good faith and opportunism, productive and unproductive information, asymmetric information and good faith, business conditions, e-contracts a standard form contract, the price clause, liability for breach of contract, contractual penalty and economic analysis, critique of "efficient" breach of contract, warranty, enforcement of performance of the contract) Students are introduced to the legal norms and institutions of contract law in terms of efficiency. Students are introduced to the three rules applied by the courts in filling gaps in the contract: the rule of "the cheapest cost avoider", the rule "the cheapest Insurer" and the rule "the superior risk bearer". On specific institutes of the Contract law students in a broader context can see that behind many of them is economic analysis.
• 5. TORT LAW AND ECONOMIC ANALYSIS (The introduction to the tort law, subjective and objective responsibility in the economic context, bilateral responsibility, due care and Learned Handová rule limitation of damages, the market for lemons, compensation for pain and suffering, punitive damage in private law, the price of special popularity) Students are justified the role of the tort law through the application of the economic analysis of law. Students analyse and try to find the answer to the question: Who and what amount has to pay for the damage? Students are introduced the rule "the cheapest cost avoider" applicable for the liability for damage caused by the wrongful act and the rule Learned Hand.
• 6) INTRODUCTION OF AGENTS CALLED A DESIGNER (ZADAVATEL) AND DESIGNEE (DODAVATEL). Within them, introduction of agents called a Beneficient (Beneficiary), Odpůrce (Defendant) a Referee (Manager) of their respective negotiation.. Express) or implied designs of the roles. Cases when all the above roles are performed by the same person „at the same time“. The opposite case, where into the roles are designed mutually different persons.
• 7) CONTENT OF AN OBLIGATION. INSEPARABILITY OF AN OBLIGATION AND THE CONDITION OR CONDITIONS UNDER WHICH ONLY THE OBLIGATION MAY BE PRESCRIBED. (An obligation in itself has in fact no empirical meaning unless it is supplemented conditions under which it may be prescribed.) Re-interpetation of an obligation as a delivery – of something, somewhere, sometime. Re-interpetation of the terms dare (to give), facere (to akct), omittere (to forbear) a pati (withstand). Differentiation of a Designee (Dodavatel) vs. a „factual“ Executor (Vykonavatel, e.g. an employee of the Designee).
• 8) DEVELOPMENT OF AN OBLIGATION OR A DESIGNEE. A finite number of this development’s stages, namely stages denoted as designed, prescribed and completed – fulfilled or breached.
• 9) THE STAGE PRESCRIBED IS AN OUTCOME OF A NEGOTIATION (COLLECTIVE CHOICE) BETWEEN A BENEFICIARY AND DEFENDANT. Sources and a formal representation of the asymmetries in their negotiation powers. The position of the Referee (Manager) who, among others – in the role of a fact-finder – issues a verdict about whether and how are Beneficiary’s and Defendant’s “moves” valid and justified.
• 10) INTRODUCTION OF THE TERM ORDER SO AS TO UNIFY ALL KINDS OF UNILATERAL LEGAL ACTS .- e.g. claims of an insured damage, vote, proposal, acceptance, verdict … Differentiation between an order’s validity and justifiability.
• 11) SUBMITTING AN ORDER AS AN OUTCOME OF A “FREE” CHOICE” VS. AN “ENFORCED” FULFILLMENT OF THE RESPECTIVE OBLIGATION. A collective submitter of an order. A collective choice to make a proposal for a contract formation. A collective choice (of a collective Designer) whether and how to design a particular Designee. A collective choice of a contract’s couter-parties to design each other into the roles of Designees. Sources and a formal representation of the asymmetries in the voting powers of the members of the collective submitter of the order.
• 12) SALES CONTRACT. Economic impact of the order in which obligations of the Seller and Purchaser are to be performed. As a rule, impliedly is designed the fact-finder who issues the verdict about whether and how are valid and justified counte-parties’ orders. Differentiation between the civil-law Referee (Manager) and eventual public-low authority, namely a justice court. INSURANCE CONTRACT - life insurance and compulsory insurance of vehicles. Contract in the benefit of a “third person”, namely the person designed anonymously and collectively. As a rule, expressly is designed the fact-finder (assessor) who issues the verdict about whether and how are valid and justified Beneficiary’s and Defendant’s orders.
• 13) TOWARDS THE ARROGANCE AND INEFFICIENCY OF JUDICIARY. SELF-REGULATION AND FOR-LIFE APPOINTMENT.

Literature

required literature
• TŘÍSKA, Dušan. Social Choice and Behavior; the nature of their design and management. Walters Kluwer, 2017. ISBN 978-80-7552-921-3.

recommended literature
• FRIEDMAN, D., Economic Analysis of Law, Santa Clara University Law School, Spring
• TŘÍSKA, D.: Ekonomie jako osud. Praha: Institut Václava Klause, 2016. ISBN 978-80-7542-017-6.
• TŘÍSKA, D.: Veřejná služba poskytovaná soudy a její organizace In: Potřebuje české soudnictví reformu? Ekonomika, právo a politika č. 34/2004. CEP, Praha, 2004
• SCHÄFER, Hans-Bernd, OTT, Claus. The Economic Analysis of Civil Law. Cheltenham UK: Edward Elgar Publishing Limited, 2004, 473 s. ISBN 1 84376 277 3.
• POSNER, R A.: Economic analysis of law. Little, Brown, Boston, 1986, 0-316-71438-0
• COOTER, Robert, ULEN, S. Thomas. Law & Economics. 6. vyd., Courier Westford, Inc., 2011, s. 555. ISBN 978-0132540650.
• TŘÍSKA, D.: Ekonomická analýza smluv, systémů a procesů. Vysoká škola ekonomická, Národohospodářská fakulta, Oeconomica, Praha 2009. ISBN 978-80-245-1575-5.
• TŘÍSKA, D.: K otázkám vědeckosti ekonomie a právní nauky. In: Ekonomické teorie a česká ekonomika. II. Sborník příspěvků ze série ekonomických seminářů, editoři L. Komárek a P. Mezerová, Česká společnost ekonomická 2003.
• TŘÍSKA, D.: Škodný jev, odpovědnost a pojištění. In: Vývoj práva deliktní odpovědnosti za škodu v české Republice, Rakousku a Evropě, Luboš Tichý (ed.) s. 96 – 106, Univerzita Karlova v Praze, Právnická fakulta: Praha 2005,ISBN: 80-85889-63-3.
• TŘÍSKA, D.: K některým možnostem optimalizace smlouvy a závazkových vztahů. Vysoká škola ekonomická, Národohospodářská fakulta, Oeconomica, Praha 2005. ISBN 80-245-0916-4.
• TŘÍSKA, D.: Economics and Its Approach to Causation. In: Causation in Law, Luboš Tichý (ed.) s. 41 – 52, Univerzita Karlova v Praze, Právnická fakulta, Praha 2007, ISBN 80-85889-93-2.
• TŘÍSKA, D.: Ekonomická analýza smluv, systémů a procesů. Vysoká škola ekonomická, Národohospodářská fakulta, Oeconomica, Praha 2009. ISBN 978-80-245-1575-5.
• BOUCKAERT, B: Encyclopedia of Law and Economics, Second Edition. Edward Elgar Publishing; ISBN 978 1 78195 205 4.
• TŘÍSKA, D.: Čtyři přínosy právní nauky pro rozvoj ekonomického myšlení. Acta Oeconomica Pragensia, 2006, roč. 14, č. 2, s. 16–30. ISSN 0572-3043.
• TŘÍSKA, D.: Majetkový podíl na smlouvě, jeho převoditelnost a hodnota. Sborník synopsí referátů pro 1. výroční konferenci České společnosti ekonomické, Praha – listopad 2000, Finance a úvěr, ročník 50, č. 11/2000.

Teaching methods

Teaching methods: - Conventional teaching methods (verbal, practical) - Activating methods (discussion, heuristic) - Comprehensive (frontal teaching, individual, critical thinking, teaching supported by computer, television teaching)

Assessment methods

The course is finished by colloquium. The condition of successful completion of the colloquium is attendance at seminars and passing a check test.

Language of instruction

Czech

Further Comments

Study Materials
The course is taught annually.

• Enrolment Statistics (recent)
  
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