Week 3: Regulating Economic Control

Question 1

What is Legalism?

Answer 1

Rational, rule-based legal order. Weber’s category. NOT tradition based. Capitalism REQUIRES legalism for calculability

Question 2

What is interpendence?

Answer 2

Self-interest → actors depend on each other → instability. Law
steps in to manage instability through contracts

Question 3

What is Calculability?

Answer 3

Ability to plan and predict economic outcomes — essential to capitalism. Weber’s two aspects = calculability + rationality

Question 4

What is formal equality?

Answer 4

Everyone equal before law → gives factual autonomy to elites.

Law appears neutral but benefits those with resources (Rudder v
Microsoft)

Question 5

What is the Hobbesian Order?

Answer 5

Tension between self-interest and SOCIAL ORDER.

Self-interest is limitless → requires external legal coercion

Question 6

what is private law?

Answer 6

regulates relationships between individuals in society

Question 7

what is public law?

Answer 7

regulates relationship between individuals and the state

Question 8

what is capitalism?

Answer 8

an economic system in which ownership, investment and control of the means of production reside with private individuals (as opposed to the state) within a free-market system

Question 9

For Trubek capitalism and legalism are intertwined, what is the goal of this system?

Answer 9

to achieve predictability

Question 10

what are to two aspects of law that are important to capitalism?

Answer 10

1. relative degree of calculability
2. capacity of law to make rules

Question 11

what does predictabilty cause?

Answer 11

safety and comfort

Question 12

How is Weber’s model of social action achieved internally?

Answer 12

people internalize the norms of proper behaviour and encourage unconscious fulfilment of social expectations

Question 13

How is Weber’s model of social action achieved externally?

Answer 13

a market based society it is about the law

Question 14

What was the main issue in Rudder v. Microsoft? What did the courts decide? What is the key takeaway?

Answer 14

Plaintiff got charged by microsoft, due to them clicking “I Agree”

Argued it was not fair,
the courts said it was valid as scrolling did not constitute ‘fine print’ and was equivalent to flipping the pages of an actual contract

digital contracts became valid

Question 15

What is a ‘Clickwrap’ agreement?

Answer 15

Clickwrap agreements require a user to actively manifest consent, such as by clicking an “I Agree” button