Trust me, how so? Trust me because, you see, a man’s word is his bond. Says who? Maybe it sounds sentimental but back in the Victorian Age trust and reputation were not peripheral virtues but were core to the business infrastructure. Now we have contracts.
Contracts for everything it seems. A rider in Van Halen’s roadie contract famously demanded backstage bowls of M&Ms with all the brown ones removed (in all fairness, it was meant to assure all the terms were actually read). More to the broader point, though, are commercial contracts such as this Fourth Amended and Restated Senior Secured Credit, Guaranty, Collateral, Intercreditor, Cash Management, and Hedging Agreement where one sentence can run for half a page, include eight defined terms, and end by referring you to an exhibit that refers you back to another section. People, you see, have ethics; corporations have contracts.
Our discussion goes well beyond contracts to the issue about the nature of trust in general. There are the so-called high-trust societies e.g. Scandinavian countries or, say, Japan, Switzerland, and New Zealand where trust and law are said to work together relatively well. Working well, that is, relative to what we find as we move down the social trust spectrum increasing the need for more time and energy to verify, insure, document, and litigate to protect yourself. Whether causation or correlation, the per capita number of lawyers in the United States dwarfs Japan by some 11-14 times…
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