1 хомута Typically the cart would be attached to the collar, and as the horse moved forward its shoulders would propel the collar forward and pull the cart behind. Without such a collar, the peasant decides to attach the cart to the horse in a less traditional way and with an unfortunate result.
2 приказал богатому отдать лошадь убогому, пока у нее хвост вырастет The foolish judgment that turns out to be wise has antecedants in Solomon’s judgment in the Bible (1 Kings 3:16–28). This particular anecdote from Шемякин судwas picked up in the Russian film Илья Муромец (released in English as The Sword and the Dragon), which incorporates many other themes from Russian folklore.
3 Слава богу, что я по нем судил! On the one hand, the poor brother feels that he cannot defy the bailiff, and must go to court because he could not otherwise afford the bailiff’s “walking fee”. On the other hand, he has no reservations about defying (specifically, threatening) the judge (even though the judge misreads the threat at the time). As is common in folk texts, the story does not treat these different attitudes toward authority as contradictory.
4 пять We expect five hundred rubles, and not five.