Your favorite holiday is Halloween and each year you decorate your yard with pumpkins, skeletons, and tombstones, and you install a noise machine which blasts haunting sounds 24 hours a day. It is such a spectacle that hundreds of people drive by your house each day to gawk at the display. The noise and traffic disturb your neighbors who sue you, and you are required to take down your display permanently. This is an example of
A) the Coase theorem.
B) a liability rule.
C) an injunction.
D) the free-rider problem.

Question

Quizplus · Accepted Answer

This scenario is an example of an injunction, which is a court order requiring a party to do or cease doing a specific action. In this case, the court orders the removal of the Halloween display due to the disturbance it causes to the neighbors.

Your Favorite Holiday Is Halloween and Each Year You Decorate