Hatfield and McCoy Burn with Hatred for Each Other

question 2

Multiple Choice

Hatfield and McCoy burn with hatred for each other. They both consume corn whisky. Hatfield's utility function is U and McCoy's utility is U , where W_H is Hatfield's whisky consumption and W_M is McCoy's whisky consumption, measured in gallons. The sheriff has a total of 48 gallons of confiscated whisky which he could give back to them. For some reason, the sheriff wants them both to be as happy as possible and he wants to treat them equally. The sheriff should give them each

• A) 24 gallons.
• B) 2 gallons and spill 44 gallons in the creek.
• C) 4 gallons and spill 40 gallons in the creek.
• D) 8 gallons and spill the rest in the creek.
• E) 1 gallon and spill the rest in the creek.

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Definitions:

Negligence

Negligence is the failure to take proper care in doing something, leading to damage or injury to another person.

Fictitious Payee Rule

A legal principle stating that if a negotiable instrument is issued to a fictitious payee, it may be treated as payable to bearer, affecting endorsement requirements.

Imposter Rule

A rule that holds that if one obtains a negotiable instrument by impersonating another and endorses it with the impersonated party’s signature, the loss falls on the drawer of the instrument.

Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States, intended to standardize and simplify transactions across state lines.