---
entity_slug: corporation_laws
evaluator: null
evaluated_at: '2026-02-23T05:03:25.603154'
overall_score: 4.6
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition clearly identifies corporation laws as legal privileges
    that create barriers to entry through specific mechanisms (apprenticeship requirements,
    membership fees, etc.) and explains their economic effect (enabling higher prices).
    The definition is precise and non-circular, though it could be slightly more concise.
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: This entity is directly grounded in Smith's analysis in Book I, Chapter
    10, where he extensively discusses how corporation laws restrict competition and
    create inequalities in employment advantages. The definition accurately reflects
    Smith's specific arguments about these legal mechanisms and their economic effects.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: The "Regulation" domain assignment is perfectly appropriate, as corporation
    laws are fundamentally regulatory mechanisms that govern market entry and competition.
    This clearly distinguishes them from pure market phenomena or production concepts.
- name: vsm_relevance
  value: 4.0
  max_value: 5.0
  rationale: Corporation laws map well to S3 (internal regulation) as they represent
    formal regulatory controls within the economic system that monitor and constrain
    market behavior. They also have S2 relevance as coordination mechanisms that prevent
    certain types of competitive "oscillations."
- name: explanatory_value
  value: 5.0
  max_value: 5.0
  rationale: This entity provides excellent explanatory power by identifying a specific
    structural mechanism that Smith uses to explain wage and profit inequalities across
    trades. It illuminates how legal frameworks create artificial scarcities and market
    distortions, which is central to Smith's critique of mercantile policies.
---

# Evaluation: Corporation Laws

## definition_precision — 4.0 / 5.0

The definition clearly identifies corporation laws as legal privileges that create barriers to entry through specific mechanisms (apprenticeship requirements, membership fees, etc.) and explains their economic effect (enabling higher prices). The definition is precise and non-circular, though it could be slightly more concise.

## source_grounding — 5.0 / 5.0

This entity is directly grounded in Smith's analysis in Book I, Chapter 10, where he extensively discusses how corporation laws restrict competition and create inequalities in employment advantages. The definition accurately reflects Smith's specific arguments about these legal mechanisms and their economic effects.

## domain_placement — 5.0 / 5.0

The "Regulation" domain assignment is perfectly appropriate, as corporation laws are fundamentally regulatory mechanisms that govern market entry and competition. This clearly distinguishes them from pure market phenomena or production concepts.

## vsm_relevance — 4.0 / 5.0

Corporation laws map well to S3 (internal regulation) as they represent formal regulatory controls within the economic system that monitor and constrain market behavior. They also have S2 relevance as coordination mechanisms that prevent certain types of competitive "oscillations."

## explanatory_value — 5.0 / 5.0

This entity provides excellent explanatory power by identifying a specific structural mechanism that Smith uses to explain wage and profit inequalities across trades. It illuminates how legal frameworks create artificial scarcities and market distortions, which is central to Smith's critique of mercantile policies.
