Abstract
Rules are those legal commands which differentiate legal from illegal behavior in a simple and clear way. Standards, however, are general legal criteria which are unclear and fuzzy and require complicated judiciary decision making (Diver, 1983; Kaplow, 1992). A speed limit whose violation leads to a fine of 100 $ is a rule, whereas a norm for car drivers to “drive carefully” whose violation leads to damage compensation is a standard. In the latter case the legal norm leaves open what exactly the level of due care is and how the damage compensation is to be calculated (Ulen, 1999).
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Schaefer, HB. (2004). Legal Rules and Standards. In: Rowley, C.K., Schneider, F. (eds) The Encyclopedia of Public Choice. Springer, Boston, MA. https://doi.org/10.1007/978-0-306-47828-4_132
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DOI: https://doi.org/10.1007/978-0-306-47828-4_132
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