The Switch in Property Rights from Fault to No- Fault

question 48

Multiple Choice

The switch in property rights from fault to no- fault divorce resulted in a situation where:

• A)property rights are misallocated.
• B)there were large negative externalities.
• C)the property right is held by the spouse who least wants the divorce.
• D)the property right is held by the spouse who most wants the divorce.

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Definitions:

Two-party Instrument

A financial document or contract that involves two parties directly, typically involving a payer and a payee.

Three-party Instrument

A financial document involving three parties, typically referring to negotiable instruments where there is a drawer, drawee, and payee.

Relative Permanence

Pertains to the duration or stability of something compared with others, often indicating that it is more lasting or fixed but not permanent.

Requirements Of Negotiability

Legal criteria that a document must meet to be considered negotiable, enabling the transfer of the document to another party under commercial law.