>I'm morbidly curious as to what would happen if it was allowed to do that.

Probably get sued into oblivion after screwing up. It's really easy to do when you're not the government and can't raise taxes to cover your stupidity.

This is the most likely scenario honestly. I was a security guard while I was in college because it gave me time to study. They were very explicit about NOT engaging with anyone in a confrontational manner. You make yourself seen to prevent stuff walking off of job sites and if you see someone doing something you call the police, period. They didn't want to be sued. They even had a limit on how big your mag-lite could be so it wouldn't be considered a weapon.

Or get the courts to give you special liability protection as agents of the state.

'More recently, the company raised alarm for operating an SUV labeled as “private patrol” in downtown Los Angeles, although company representatives insist the vehicle is not engaged in security work.'

It seems like that was what is known in the PR business as "a lie": https://www.vice.com/en/article/v7evbx/citizen-app-private-s...

You don't need to wonder, we have the Icelandic sagas that describe such a society. I especially recommend Hrafnkell's saga.

Hah this is not a reference I was ever expecting to see on this comment. Will check it out!