The Enforceability of the GM–Fisher Body Contract: Comment on Goldberg
12 Pages Posted: 2 Oct 2008 Last revised: 9 Jul 2011
Date Written: October 1, 2008
Goldberg unconvincingly claims that the General Motors (GM)–Fisher Body contract was in fact legally unenforceable. But even if Goldberg's contract law conclusion were correct, it is economically irrelevant. It is clear from the actions of Fisher and GM and from the testimonial and other contemporaneous evidence that both transactors considered the contract legally binding and behaved accordingly. Therefore, proper economic analysis of the Fisher–GM case should continue to assume contract enforceability, and the economic determinants of organizational structure illustrated by the case remain fully valid.
JEL Classification: L14, K12
Suggested Citation: Suggested Citation