This course is an introduction to the basic legal rules and principles governing the relations among managers, investors, and creditors in the business enterprise. The course is the foundation for advanced business courses. It focuses on problems that arise because a firm's managers and owners have conflicting interests. It examines the costs associated with this conflict and how markets, legal rules, and contracts might reduce them. Agency and partnership law are covered briefly, but the course emphasizes the financing, control, and conflicts of publicly held corporations.
Exposure to Quantitative Methods: Finance (Law 468) is helpful in this course and in a number of advanced courses in the business and commercial law concentration.