Arbeitspapier
Opportunistic Termination
If a seller delivers a good non-conforming to contract, European and US warranty law allows consumers to choose between some money transfer and termination. Termination rights are, however, widely criticized, mainly for fear that the buyer may use non-conformity as a pretext for getting rid of a contract he no longer wants. We show that this possibility of 'opportunistic termination' might actually have positive effects. Under some circumstances, it will lead to redistribution in favour of the buyer without any loss of efficiency. Moreover, by curbing the monopoly power of the seller, a regime involving termination might increase welfare by enabling a more efficient output level in a setting with multiple buyers.
- Language
-
Englisch
- Bibliographic citation
-
Series: SFB/TR 15 Discussion Paper ; No. 226
- Classification
-
Wirtschaft
Contract Law
Antitrust Issues and Policies: General
Distribution: General
- Subject
-
contract law
warranties
breach remedies
termination
harmonization
- Event
-
Geistige Schöpfung
- (who)
-
Stremitzer, Alexander
- Event
-
Veröffentlichung
- (who)
-
Sonderforschungsbereich/Transregio 15 - Governance and the Efficiency of Economic Systems (GESY)
- (where)
-
München
- (when)
-
2008
- DOI
-
doi:10.5282/ubm/epub.13326
- Handle
- URN
-
urn:nbn:de:bvb:19-epub-13326-0
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Stremitzer, Alexander
- Sonderforschungsbereich/Transregio 15 - Governance and the Efficiency of Economic Systems (GESY)
Time of origin
- 2008
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Opportunistic Monetary Policy: an Alternative Rationalization
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Mobile termination and collusion, revisited
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Bank Capital Regulation with an Opportunistic Rating Agency
Time overruns as opportunistic behavior in public procurement
Capital structure, pay structure and job termination