State enforcement supplanted communal reputation as the guarantor of commercial judgments.

Evidence

The Law Merchant system of judges and reputations was eventually replaced by a system of state enforcement, typically in the late middle ages or the early modern era in Western Europe. Enforcement of the private codes by the state added a new dimension to enforcement, especially in later periods when nationstates exercised extensive geographic control. Rather than depend for punishment upon the decentralized behavior of merchants, state enforcement could seize the property of individuals who resisted paying judgments, or put them into jail. — PAUL R. MILGRO, PAUL R. MILGRO - THE ROLE OF…, 173

Categorization

  • XREF: The transition from decentralized merchant punishment to state seizure/jail is the endgame of private-enforcement theory the reader is tracking — state power absorbs the third-party enforcer role. — connects to: Private legal systems can rival state law when reputation functions as enforcement. — Lisa Bernestein, Opting out of the Legal System, 16; Pre-state trading communities sustained honesty through reputation systems backed by private judges. — PAUL R. MILGRO, PAUL R. MILGRO - THE ROLE OF…, 1; Arbitration judgments are enforced through public shaming and cross-bourse reciprocity. — Lisa Bernestein, Opting out of the Legal System, 93 (+5 more)

Broader Connections