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Multiple-choice questions 1) All Greeks are happy / Theodor is Greek // Theodor is happy This inference is: a) valid b) sound c) neither valid nor sound 2) Beccaria was in favor of: a) the purposive interpretation of statutes b) judicial decisions based on single syllogisms c) judicial decisions based on internal and external justification 3) Meta-arguments in interpretation: a) resolve conflicts between interpreters b) prevent conflicts between high courts c) resolve conflicts between interpretive arguments 4) Kaldor-Hicks efficiency: a) requires compensation b) is based on the agents’ monetary evaluation of an outcome c) ignores the intensity of individual preferences 5) The residents of Smallville hold a referendum to decide whether or not to dedicate a statue to Clark Kent in the town’s public part. 80% vote in favor; 20% vote against. Building the statue is: a) Pareto efficient b) Pareto inefficient c) Kaldor-Hicks efficient * Problem solving in LA Nix v. Hedden (1893) Under the U.S. Tariff Act of 1883, a 10% import duty must be levied on “vegetables”, but not on “fruit”. Nix imported tomatoes and pointed out that, from a botanical point of view, a tomato is fruit due to its seed-bearing structure growing from the flowering part of a plant. Hedden, the Tax Collector of the Port of New York, rejected the argument. So, although tomatoes are botanical fruits, should they be considered “vegetables” within the meaning of the Act? Comment and suggest how to decide (max 200 words) The case is about the literal interpretation of the Act. [Explain briefly what literal interpretation is]. Nix argues that the words “vegetables” and “fruit” must be interpreted according to their scientific meaning, to the effect that importing tomatoes is excluded from the 10% import duty since tomatoes are fruit from a botanical viewpoint. Hedden rejects the claim, supposedly arguing that such words must be interpreted according to their ordinary meaning, so that “vegetables” include tomatoes and the import duty is due. If the text doesn’t specify how those words are to be read, to resolve the interpretive conflict, it is appropriate considering legislative intentions or the purposes of the Act. [Explain briefly what purposive interpretation is]. Unless such intent or purpose had to do with the scientific nature of the goods at stake, it is sensible to prefer the ordinary meaning of the words.

* Problem solving in EA A opens a meditation center next to the kindergarten managed by B. A’s clients are annoyed by the cheerful screams of the children attending the kindergarten. A sues B asking for an injunction or, subordinately, that B is condemned to pay for A’s meditation center soundproofing. Identify and justify the efficient solution (max 200 words) A is asking for either a property rule or damages. The EAL recommends considering the level of transaction and adjudication costs, as well as who the cheapest cost avoider is. [explain why] In this case, TC are lower than AC [explain why]. Accordingly, a property rule is preferable. The court should reject A’s action. This means granting a property right to B. This result is justified by the fact that A could have avoided the conflict in the first place [elaborate] Note. You can use abbreviations, such as: EAL for economic analysis of law; TC for trnsaction costs; AC for adjudication costs; P-efficiency for Pareto-efficiency, and K-H-efficiency for Kaldor-Hicks efficiency....