Article 1. Government shall make no law restricting the right of a willing buyer and a willing seller, or willing employer and willing employee, to enter into any contract the object of which is not itself illegal.

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Nevertheless, there are many laws and regulations which interfere with or prohibit exchanges which would be acceptable to both parties. These laws are based on the idea that the exchange actually harms one of the parties, or that it harms someone else not a party to the transaction.

Laws which require licenses or other forms of government approval before someone can offer to provide a good or service are usually justified as benefiting consumers, who are presumed to be incapable of judging the quality of what they buy. These laws have the effect, whether intended or not, of reducing competition among suppliers, and raising the price of the good or service. Both the buyers and the would-be suppliers who are "frozen out" are harmed by these laws.

All laws which interfere with an otherwise legal transaction between willing buyer and willing seller result in higher costs and reduced efficiency in the economy. However, this is not their worst shortcoming. Ultimately they violate the property rights of people who wish to engage in a voluntary exchange. Their rights are disregarded for the benefit of third parties who do not wish that particular exchange to take place.

The proposed statement of right is not intended to preclude government action to assure that buyers are informed regarding safety and long-term effects.