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Much of USA law is based on authoritative texts, such as constitutions and statutes. The common law, in contrast, is that part of the law that is established by the courts. Common law rules predominate in some areas of law, such as torts and contracts, and are extremely important in other areas, such as corporations. Nevertheless, it has not been clear what principles courts use - or should use - in establishing common law rules. In this book, the author develops the principles that govern this process.