Gepost in:2023.11.23
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Thus, a term in a standard-form contract is compatible with a first-order norm if it either is adhering to that norm or is an adequately justified fine-tuning of the risk allocations that norm implements.On the other hand, consider what happens when sellers do promise that a product is fit in the contract.Norm-inconsistent terms cans still be norm-compatible terms, as we will now explain....
It is unlikely that the terms violate standards articulated in cases and statutes.But these wprivate internet acceb priceill be relatively rare.This is why private internet acceb pricewe define “terms compatible with value optimal norms” in a way that makes the various disclaimers count as compatible....
The fitness norm is aprivate internet acceb price good example.Our answer is that we do not equate compatibility with straightforward adherence to norms.So how can the norm be that contracts contain norm compatible terms? It takes some time to explain our answer, but doing so is essential to understanding how the contracting behavior we engage day in and day out actually works....
Using our by now familiar two-step argument, we show that it exists in an ideal market, and then we argue that it will exist in any rprivate internet acceb priceeal market that sufficiently closely approximates the ideal.* The fitness norm, which we discussed in Chapter 6, states that products should be fit for the ordinary purpose for which they are used.Norm-inconsistent terms are still compatible when they do not completely overturn the norm-implemented trade-off but just fine-tune it....
Once again, we temporarily assume perfect competition, this time in all mass markets in which standardized products or services are sold with standard-form contracts.* In addition, if Barbara is a sophisticated consumer, she also may know that contracts like her water heater contract have been litigated and are somewhat regulated, so she can’t be getting too bad a deal.It is unlikely that the terms violate standards articulated in cases and statutes....
