We have 4 separate fishing resorts that are near a paper mill. The
paper mill dumped waste in the lake. Due to the waste, there is a
decrease in fish. Cleaning the waste is less than the cost of
conpensating the owners but is greater than the cost of having the
fishing resorts changed to family resorts.
Question 1: The courts awards property rights to the fishing reports
and protects the rights with damages. In order to achieve the optimal
solution, the courts must compensate the resort owners for doing what?
Question 2: The courts believes that it is easy for the resorts owners
and the owner of the paper mill to get together and negotiate. Assume
further the court believes that it is very difficult for it to
determne the damages the power plant imposes on the resort owners. Who
should the court award the property rights to and how should the
rights be protected?

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Request for Question Clarification by politicalguru-ga on 06 Aug 2002 06:25 PDT

Dear Ako, 
Is that homework question or "real life" one? If homework - What do
you study and what year?