The need for lawyers to work out a legal agreement between the flower nursery and the butterfly farm contradic?

the need for lawyers to work out a legal agreement between the flower nursery and the butterfly farm contradicts an important requirement of ( arrow's impossibility theorem, the Laffer curve,the Coase theorem)- namely, that the parties experiencing an externality must be able to(bargain at zero cost, go to small claims court, agree upon an equitable initial distribution of rights).Neverrtheless,private solutions to externalities do not always work. One of the primary occurrences of this is when communications barriers or customs are important enought relative to the potential gains involved that (the market system has a crisis, a private solution is not feasible, the government must step in). which one it correct.?