Law

-most significant of social forces, has the ability to glue together diverse peoples of different backgrounds into very large organized groups -rules that regulate the conduct of individuals, businesses, and other organization of society

Rule of Law

principle that the law applies to everyone, even those who govern -this can never truly exist in any government -embraced by almost all wealthy countries

4 universal principles define the rule of law

1. the government and its officials and agents as well as individuals and private entities are accountable under the law. 2. the laws are clear, publicized, stable, and just: are applied evenly; and protect fundamental rights, including the security of persons and property and certain core human rights 3. the process by which the laws are enacted, administered, and enforced is accessible, fair and efficient 4. justice is delivered timely by competent, ethical, and independent representatives and neutrals who are of sufficient number, have adequate resources, and reflect the makeup of the communities they serve

3 concepts necessary for a successful private market

law, rule of law, property

property/ ownership

the right to turn to public authorities like the police or the courts to help you keep others from interfering with what you own

3 types of properties

public (roads, monuments), common (land that more than one person owns), private

contract law

enables an owner to exchange resources, especially at a future date

tort law

compensates owners whose resources are wrongfully harmed by the actions of others

regulatory law

protects ownership and sets limits on private resource use

antitrust law

forbids owners from monopolizing classes of resources and sets rules for how businesses can compete to acquire ownership in new resources