Comment: These are all great questions... the answers are long, but...

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These are all great questions... the answers are long, but...

I will try to keep it short. If you want the long answer, I suggest reading Practical Anarchy, available for free on this page.

First, millions of people working in freedom will come up with a better answer than I possibly could, so this is just a guess at how it might be... consider it a worse case scenario.

Your questions, are all about the judicial system, except for the invading army. You already pay for a military, what make you think you would not want to pay for it under freedom? the difference, when you choose to pay for it, you most likely will not be starting wars of aggression against non threatening states like we do. Again, you will have a superior product for far less money.

Onto the judicial system. Lets start small, and move up to murder.

1. Enforcing contract. Ebay has proved that the threat of ostricism is a far greater deterrent than a judicial system. If I send you money, and you don't send me the product, that -1 rating will cost you many thousands of times more money in future profits. Yelp, Angieslist, credit rating system, and tenant rating system prove the same, in restaurant, services, loan repayment, and leasing industries respectively.

These Systems work great for small purchases... but what about million dollar transactions. Well lets extend the idea. I want to buy 1000 cars off of a car manufacturer, and he requires money up front to start building. Without a judicial system I have no recourse if he flies to Bermuda with my money. So I would want to take insurance against him doing that as part of the contract. The premium he pays for that insurance will depend on his history of him honoring his contracts. The insurance company/industry will begin tracking each individuals history of honoring contracts. A few breaches and the premium for insurance is so high that the person can never do business again. The economic cost to screwing someone is too high. Just like screwing someone on Ebay, it is not worth it. And if the customer was screwed, the insurance company pays it out. For simplicity this Insurance companies will be called DRO's(Dispute Resolution Organizations)

Lets compare that to now.... we pay taxes for a judicial, sheriff and prison system. Usually any crime committed requires a fine paid to the government instead of the victims. And the punishment is less than the crime, providing incentive for future crime. Eg: MF global steals money off its customers. They pay a small fine to government, get a slap on the wrist, and the victims get screwed.

Moving on to murder as fast as possible.
Lets split this up. I think 90% or so of murder is because there is an economic incentive to do so. (Gang warfare, organized crime etc.) Hopefully from the above you can see there is no longer an incentive to commit these crimes, but the victims family does receive compensation and the cost will be paid by the murderer.. The other 10% of murders are crimes of passion. Nothing will stop them. But via the same mechanism from above, if a murderer does not agree to the terms of the punishment/payback method prescribed by the DRO, then they will be economically cut off from society.

Remember there are no public places. All property is private. The roads, the grocery stores, the parks will not accept customers without DRO insurance. They are ostracized from life. If they turn to a life of stealing and thuggery, eventually they will get shot by some private guard or responsible citizen protecting their property.

That is what I have as quickly as I can for you... As I said... read the book I suggested if you want a more thorough solution.
Protect your assets and profit from the greatest wealth transfer in history.