1. Use the theory of transaction costs to justify protecting the following rights by injunction or damages:
a. a land owner’s right to exclude from his property a neighbor’s gas line
b. a new car owner’s right to have her car’s defective transmission replaced by the seller
c. a homeowner’s right to be free from air pollution by a nearby factory
d. a spouse’s right to half the house on divorce
2. Suppose that two people choose to litigate a dispute. Should the law presume that if two parties are prepared to litigate, transaction costs must be high, and therefore the court should choose damages as the remedy, not an injunction?