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Flashcards in Theory - Bundle of Sticks Deck (17)
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1

Right to Exclude - Navigable Waters

Common law - entitled to use the water over his land

Civil Law - reasonable use of the entire surface of the water

2

Name the sticks in the "Bundle of Sticks"

Right to exclude
Right to Use
Right to destroy
Right to transfer
Right to modify

3

Externalities

When one's actions produce a cost which he does not have to bear, or produces a benefit from which he cannot benefit

4

Real Property

Land or anything permanently attached to land

5

Personal Property

Moveable property - includes all property that is not real property

6

Policies behind Property

Economic efficiency, fairness, certainty, personhood, democracy

7

Economic effeciency

The protection of property gives people an incentive to produce and therefore leads to wealth maximization for society as a whole. By making property transferable, the free market will help to ensure land is used for its "Highest and best use."

8

Fairness - Labor theory

When one enhances the value of publicly held property, that property becomes the property of the actor

Ex. Manure

9

Certainty

Increases the value of property because the less certain one regarding their rightful ownership of a piece of property, the less they are willing to pay for it

10

Federal Land Patent

grants Root of title - first in possession, superior title interest over all

11

Personhood

Owning property allows people to express themselves through creative use of the property. Overtime property becomes an extension of one's identity

12

Democracy

A nation of property owners supports stability because people have a stake in maintaining law and order

13

Right to Exclude

One has the right to exclude others from their property

Very important Stick

Always connected to trespass - no actual damage required to recover damages

14

Right to Exclude - Ad Coelum Doctrine

Land ownership extends all the way up to heaven and down to hell

Modern Rule - Owner has exclusive use of airspace immediately above his land

15

Right to Exclude - Public interest

Public interest can outweigh the right to exclude

Ex: Ranch owner cannot exclude aide workers from helping workers who live on property

16

Right to use - exceptions

Zoning, easements, CC&Rs

Unreasonable harm - spite fences

17

Right to destroy - Exception

Historical or architectural signifigance