Some Points About PowerPoint

AALS Annual Meeting

January 3, 2004

Eric J. GouvinAssociate Dean &Professor of Law

Western New England School of Lawegouvin@law.wnec.edu

How Not to Use PowerPoint

What’s the likely outcome?

If Player 1 knew that Player 2 was going left, he would too, and vise versa

If Player 1 wanted to play left, but heard ahead of time that Player 2 was choosing right, then Player would would abandon his strategy and go right.

Although Player 1 slightly prefers left, he would rather have right than no payoff

Nash Equilibrium

Although neither player has a dominant strategy, this game is said to have two “Nash equilibria.”

A Nash Equilibrium is the combination of strategies that players are likely to choose because no player could do better by choosing a different strategy given the strategy the other chooses.

That is, the strategy of each player is the best response to the strategy of the other.

Ways that I Use PowerPoint

• Text of Statutes/Restatements/Opinions

• Present drawings I would have made on the Board

• Liven up the presentation

Text of Statutes, etc.

§ 24. OFFER DEFINED

An offer is the manifestation of willingness to enter into a

bargain, so made as to justify another person in understanding

that his assent to that bargain is invited and will conclude it.

§9-301 Governing Law

Except as otherwise provided in Sections 9-303 through 9-306, the following rules determine the law governing perfection, the effect of perfection or nonperfection, and the priority of a security interest in collateral:

(1) Except as otherwise provided in this section, while a debtor is located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in collateral.

§9-301 Governing Law

Except as otherwise provided in Sections 9-303 through 9-306, the following rules determine the law governing perfection, the effect of perfection or nonperfection, and the priority of a security interest in collateral:

(1) Except as otherwise provided in this section, while a debtor is located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in collateral.

PROPERTY COVERED BY ARTICLE 9

Goods 9-102(a)(44)Consumer goods (23)Farm products (34)Inventory (48)Equipment (33)

Semi- IntangiblesInstruments (47)

Promissory notes (65)

Documents (30)

Investment property (49)

Chattel paper (11)

Money Letter of credit rights (51)Supporting Obligations (77)

IntangiblesAccounts (2)

Health ins. receivables (46)

Commercial tort claims (13)Deposit accounts (29)

General intangibles (42)

Payment intangibles (61)

Software (75)

Things in action

Real Estate Related ItemsFixtures (41)

Standing Timber/Crops (44)

“As extracted Collateral” (6)

Next

Drawings

Timelines

8/4 a.m. noon

House listedw/ Hawkins

Byer showshouse to N&K

Byer helps N&Kpp offer -- must accept by 5 pm on 8/5

eve. later 8/5 5 pm

Miller makescounteroffer

N&K wantto sleep on it

B inks dealw/ Segal

2 pm

“You snooze You lose”

N&K acceptCO

12:30 am!

March1952

3/26 4/7

Ad inpaper

L makesinquiry

S sendsletter

L writesto S

4/8 4/12 4/14 4/28

S writes back“better actfast”

S sells to3rd party

L rec’s4/8 ltr

4/15

L“accepts”

S refuses to convey

March1952

3/26 4/7

Ad inpaper

L makesinquiry

S sendsletter

L writesto S

4/8 4/12 4/14

S writes back“better actfast”

S sells to3rd party

L rec’s4/8 ltr

4/15

L putsacceptancein the mail

What if….. 4/13

S rec’s L’s4/12 ltr

Illustrating the case/problem

Acme, Inc.

Mortgagee

Mortgage and Note

$$$

Working Capital Lender

$$$

InventoryEquipment

Fixtures

Instruments &Intangibles

Accounts

Note andSecurity Agmt

Vendor

?

BNIOCOBBankruptcy T’eeStatutory LienorJudgment CreditorGeneral Creditors

BIOCOB

Right FieldBleachers

Visitor’sBullpen

Chain LinkFence

(Re-enactment)

(Re-enactment)

ManningGrimsely

Orioles Suck!

I’ve had enoughof that guy

D’OH!

HA HA!

LoC Transaction -- Set Up

Buyer(Applicant)

Seller(Beneficiary)

Correspondent

IssuerAdvising

Bank

Negotiated K Terms

Applies for LoC, Pays fee

Transmit LoC

Confirm

LoC Transaction -- Payment

Buyer(Applicant)

Seller(Beneficiary)

Correspondent

IssuerAdvising

Bank

Ship Goods

$

$

$

Maps

Warren

Graphs

Supply and Demand

Quantity

PriceDemand

Supply

p*

q*

Supply and Demand

Quantity

Price

DemandSupply

p*

q*

Consumer Surplus

Producer Surplus

Legal Restrictions on Interest rates

Quantity

PriceDemand for Loans

Supply of Loans

p*

q*

Maximum Interest Rate

qdqs

Legal Restrictions on Interest rates

Quantity

PriceDemand for Loans

Supply of Loans

p*

q*

Maximum Interest Rate

qd

qs

Gained Consumer Surplus

Legal Restrictions on Interest rates

Quantity

PriceDemand for Loans

Supply of Loans

p*

q*

Maximum Interest Rate

qd

qs

Lost Producer Surplus

Legal Restrictions on Interest rates

Quantity

PriceDemand for Loans

Supply of Loans

p*

q*

Maximum Interest Rate

qd

qs

Lost Producer Surplus

Lost Consumer Surplus

Deadweight Loss

Legal Restrictions on Interest rates

Quantity

PriceDemand for Loans

Supply of Loans

p*

q*

Maximum Interest Rate

qdqs

Lost Producer Surplus

Lost Consumer Surplus

Deadweight Loss

Numbers

Strategy A Medium-Risk Allocation of Assets

Scenario Yield on Assets Owners' Profit Cost to Depositors

Worst Case 7 % 0 0 (25 percent)

Middle Case 8 % 1 0 (50 percent)

Best Case 9 % 2 0 (25 percent)

AVERAGE 8 % 1 0

Strategy B Low-Risk Allocation of Assets

Scenario Yield on Assets Owners' Profit Cost to Depositors

Worst Case 7.25 % 0.25 0 (25 percent)

Middle Case 7.5 % 0.50 0 (50 percent)

Best Case 7.75 % 0.75 0 (25 percent)

AVERAGE 7.5 % 0.5 0

Strategy CHigher-Risk Allocation of Assets

Scenario Yield on Assets Owners' Profit Cost to Depositors

Worst Case 5 % (1) (1) (25 percent)

Middle Case 9 % 2 0 (50 percent)

Best Case 13 % 6 0 (25 percent)

AVERAGE 9 % 2.25 (0.25)

Comparison of Returns

Strategy Ave Return Expected Expected Cost Profit for Owner to

Depositors

A 8.0% $ 1 $0

B 7.5% $ 0.5 $0

C 9.0% $ 2.25 ($0.25)

Liven Up the Presentation

Livening things up

• Stuff you can’t do on the board:

Web LinksPicturesSoundsMovies

Web Links

Mechanics of Incorporation

CALI Lesson

Pictures

Mrs. Carlill

Wampum

Continental Notes -- 1776

Private Notes-- Banks

Stonington Bank -- 1858-1865

1862 -- The “Greenback” -- U.S. Notes

These were obligations of the US government

1863 -- National Bank Notes

Issued by a local National Bank

1913 -- Federal Reserve Notes

Issued by the 12 federal reserve banks --First truly national currency

Plucky Americans

Industrial Workers

Wm. J. Bryan

American Farmers

McKinley’s Minions

Listing to Port in the Bushey Shipyard

“The Coast Guard’s Only Submarine”

Sounds

Clauses

Movies

Rules For Monica

What is the “Holding”?

The Normal Form Game Player 2 Cooperate Defect

Cooperate

Player 1

Defect

(Player 1 Payoff, Player 2 Payoff)

1 payoff, 2 payoff

1 payoff, 2 payoff 1 payoff, 2 payoff

The Prisoners’ DilemmaA Game of Cooperation

Prisoner 2 Silent Confess

Silent

Prisoner 1

Confess

-2, -2 -10, 0

0, -10 -6,-6

An Application -- Bank Runs

The IAWL Bank Run Game

Everybody Else Leave $ Sell to Potter

Leave $

Tom

Sell to Potter

100%, 100% 0, 50%

50%, 100% 50%, 50%

The Bank Run Game w/ Deposit Insurance

Other Insured Depositors Leave $ Withdraw $

Leave $

Tom

Withdraw

100%, 100% 100%, 100%

100%, 100% 100%, 100%

The End