Law Commons^™

Property Rules And Liability Rules: The Cathedral In Another Light, James Krier, Stewart Schwab

Stewart J Schwab

Ronald Coase's essay on "The Problem of Social Cost" introduced the world to transaction costs, and the introduction laid the foundation for an ongoing cottage industry in law and economics. And of all the law-and-economics scholarship built on Coase's insights, perhaps the most widely known and influential contribution has been Calabresi and Melamed's discussion of what they called "property rules" and "liability rules."' Those rules and the methodology behind them are our subjects here. We have a number of objectives, the most basic of which is to provide a much needed primer for those students, scholars, and lawyers who are …

Bankruptcy Or Bailouts?, Kenneth Ayotte, David Skeel

Kenneth Ayotte

The usual reaction if one mentions bankruptcy as a mechanism for addressing a financial institution’s default is incredulity. Those who favor the rescue of troubled financial institutions, and even those who prefer that their assets be promptly sold to a healthier institution, treat bankruptcy as anathema. Everyone seems to agree that nothing good can come from bankruptcy. Indeed, the Chapter 11 filing by Lehman Brothers has been singled out by many the primary cause of the severe economic and financial contraction that followed, and proof that bankruptcy is disorderly and ineffective. As a result, ad-hoc rescue lending to avoid bankruptcy …

Commodification And Contract Formation: Placing The Consideration Doctrine On Stronger Foundations

David Gamage

Under the traditional consideration doctrine, a promise is only legally enforceable if it is made in exchange for something of value. This doctrine lies at the heart of contract law, yet it lacks a sound theoretical justification – a fact that has confounded generations of scholars and created a mess of case law. This paper argues that the failure of traditional justifications for the doctrine comes from two mistaken assumptions. First, previous scholars have assumed that anyone can back a promise with nominal consideration if they wish to do so. We show how social norms against commodification limit the availability …

The Dynamic Of Institutional Discrepancies And Growing Contradiction Within The International Economic Order, Chantal Thomas

Chantal Thomas

No abstract provided.

Transfer Of Technology In The Contemporary International Order, Chantal Thomas

Chantal Thomas

No abstract provided.

On The Rise Of Shareholder Primacy, Signs Of Its Fall, And The Return Of Managerialism (In The Closet), Lynn Stout

Lynn A. Stout

In their 1932 opus "The Modern Corporation and Public Property," Adolf Berle and Gardiner Means famously documented the evolution of a new economic entity—the public corporation. What made the public corporation “public,” of course, was that it had thousands or even hundreds of thousands of shareholders, none of whom owned more than a small fraction of outstanding shares. As a result, the public firm’s shareholders had little individual incentive to pay close attention to what was going on inside the firm, or even to vote. Dispersed shareholders were rationally apathetic. If they voted at all, they usually voted to approve …

Dirty Debts Sold Dirt Cheap, Dalie Jimenez

Dalie Jimenez

More than 77 million Americans have a debt in collections. Many of these debts will be sold to debt buyers for pennies, or fractions of pennies, on the dollar. This Article details the perilous path that debts travel as they move through the collection ecosystem. Using a unique dataset of 84 consumer debt purchase and sale agreement, it examines the manner in which debts are sold, oftentimes as simple data on a spreadsheet, devoid of any documentary evidence. It finds that in many contracts, sellers disclaim all warranties about the underlying debts sold or the information transferred. Sellers also sometimes …

License To Deal: Mandatory Approval Of Complex Financial Products, Saule Omarova

Saule T. Omarova

“There is definitely going to be another financial crisis around the corner because we haven’t solved any of the things that caused the previous crisis,” said hedge fund legend Mark Mobius, speaking in Tokyo nearly a full year after the United States officially embarked upon the greatest reform of financial services regulation since the New Deal. Today, the world is still reeling from the recent financial crisis, which ravaged even the strongest economies and left them battling recession, budget deficits, soaring unemployment, and political discontent. Facing another financial crisis in this situation is a frightening prospect. National governments, individually or …

Bretton Woods 1.0: A Constructive Retrieval For Sustainable Finance, Robert Hockett

Robert C. Hockett

Global trade imbalance and domestic financial fragility are intimately related. When a nation runs persistently massive current account deficits to maintain global liquidity as has the United States now for decades, its central bank effectively relinquishes exchange rate flexibility to become a de facto central bank to the world. That in turn prevents the bank from playing its essential credit-modulatory role at home, at least absent strict capital controls that are difficult to administer and have long been taboo. And this can in turn render credit-fueled asset price bubbles and busts all but impossible to prevent, irrespective of the nation's …

Why (Only) Esops?, Robert Hockett

Robert C. Hockett

No abstract provided.

Ownership And Obligations: The Human Flourishing Theory Of Property, Gregory Alexander

Gregory S Alexander

Private property ordinarily triggers notions of individual rights, not social obligations. The core image of property rights, in the minds of most people, is that the owner has a right to exclude others and owes no further obligation to them. That image is highly misleading. Property owners owe far more responsibilities to others, both owners and non-owners, than the conventional imagery of property rights suggests. Property rights are inherently relational, and because of this characteristic, owners necessarily owe obligations to others. But the responsibility, or obligation, dimension of private ownership has been sorely under-theorised. Inherent in the concept of ownership …

You Want Insurance With That? Using Behavioral Economics To Protect Consumers From Add-On Insurance Products, Tom Baker, Peter Siegelman

Peter Siegelman

No abstract provided.

The End Of Contractarianism? Behavioral Economics And The Law Of Corporations, Kent Greenfield

Kent Greenfield

Reviews the current state of the scholarship in the field of behavioral economics as it relates to corporate and securities law.

How To Avoid Another Shutdown, David Gamage, David Louk

David Gamage

No abstract provided.

Copyright In An Era Of Information Overload: Toward The Privileging Of Categorizers, Frank Pasquale

Frank A. Pasquale

Environmental laws are designed to reduce negative externalities (such as pollution) that harm the natural environment. Copyright law should adjust the rights of content creators in order to compensate for the ways they reduce the usefulness of the information environment as a whole. Every new work created contributes to the store of expression, but also makes it more difficult to find whatever work one wants. Such search costs have been well-documented in information economics. Copyright law should take information overload externalities like search costs into account in its treatment of alleged copyright infringers whose work merely attempts to index, organize, …

Medical Paternalism And The Rule Of Law: A Reply To Dr. Relman, Charles Baron

Charles H. Baron

In this Article, Professor Baron challenges the position taken recently by Dr. Arnold Relman in this journal that the 1977 Saikewicz decision of the Supreme Judicial Court of Massachusetts was incorrect in calling for routine judicial resolution of decisions whether to provide life-prolonging treatment to terminally ill incompetent patients. First, Professor Baron argues that Dr. Relman's position that doctors should make such decisions is based upon an outmoded, paternalistic view of the doctor-patient relationship. Second, he points out the importance of guaranteeing to such decisions the special qualities of process which characterize decision making by courts and which are not …

The Admissibility Of Bayesian Likelihood Ratios, Robert Sanger

Robert M. Sanger

As someone once said, “there are lies, damned lies and statistics.” Anyone who has tried a case where statistics are presented to the jury knows how powerful statistics can be. Jurors are generally not versed in statistics and are vulnerable to being misled. Ironically, judges may not be much better at identifying valid statistical analyses as opposed to bogus ones.

In this Criminal Justice column we will look at statistical analysis and its place in the courtroom. We will look at a recent decision of the British Courts and the implications for that type of thinking on American jurisprudence. To …

La Preconfiguración Del Contrato: Una Propuesta De Definición De Las Reglas Predeterminadas En El Derecho De Contratos, Daniel A. Monroy

Daniel A Monroy C

Increased Market Power As A New Secondary Consideration In Patent Law, Andrew Blair-Stanek

Andrew Blair-Stanek

Courts have developed nine non-technical secondary considerations to help juries and judges in patent litigation decide whether a patent meets the crucial statutory requirement of being non-obvious. This article proposes a new, tenth secondary consideration: increased market power. If a patent measurably increases its holders’ market power, that should weigh in favor of finding the patent non-obvious. This new secondary consideration incorporates the predictive benefits of several existing secondary considerations, while increasing the accuracy and availability of evidence for fact-finders to determine whether a patent is non-obvious.

Profits As Commercial Success, Andrew Blair-Stanek

Andrew Blair-Stanek

Courts often use the extent of a patented invention’s commercial success as crucial nontechnical proof of the patent’s validity. Relying on misguided economic reasoning, most courts use revenue as the primary yardstick for commercial success. This Note argues that courts instead should use profits as the proper measure of an invention’s commercial success. Current jurisprudence’s use of revenue reflects the flawed premise that firms maximize revenues rather than maximizing profits. As a result, courts will often find commercial success when the financial data suggest otherwise and vice versa. This Note finds the accounting and economic issues involved to be insubstantial, …

States Rights > Gay Rights, Kent Greenfield

Kent Greenfield

By now you've heard from the various news sources that, in this week’s Supreme Court arguments on California's Proposition 8 and the Defense of Marriage Act, a majority of justices expressed skepticism over both. So it's imaginable—even probable, if you believe the news—that we will find ourselves at the end of June with DOMA in the junk pile and marriage equality back on the books in California.

But don't put the pink champagne on ice just yet. In both days of argument, the justices spent an extraordinary amount of time dealing with knotty procedural issues. Both cases are complicated by …

Weird Friends Of The Court, Kent Greenfield

Kent Greenfield

If you’ve felt encouraged by recent trends in favor of gay rights—including the new Washington Post poll showing 58 percent of Americans support marriage equality—swing over to SCOTUSblog and read some of the nearly 60 “friend of the Court” briefs opposing gay marriage.

On Tuesday and Wednesday of next week, the Supreme Court will hear arguments in two cases—the first on California’s Prop 8, the second on the Defense of Marriage Act—that could determine whether the federal government can define marriage as between a man and a woman, and whether state bans on same-sex marriage are unconstitutional. The parties are …

The Glocks Are Falling! The Glocks Are Falling!, Kent Greenfield

Kent Greenfield

The gun crowd is so paranoid about the erosion of their Second Amendment rights that they make Chicken Little look like an actuary.

The president’s recent gun proposals include initiatives such as expanded background checks, a ban on certain military-type rifles, and limits on the size of magazines. But if you listen to the gun folks, even these tepid proposals are—to quote a past president of the National Rifle Association—“unconstitutional schemes to gut the Second Amendment.” Iowa Senator Charles Grassley accused Obama of thinking “the Second Amendment can be tossed aside.” Any skeptical glance in the direction of that Glock …

Reinventing The Development Wheel Of The World Trading System (Reviewing Sonia E. Rolland, Development At The World Trade Organization (2012)), Sungjoon Cho

Sungjoon Cho

No abstract provided.

Attorney-General Of Pakistan - A Brief Overview, Umair Ghori

Umair H. Ghori

The legal system of Pakistan represents a fusion of the Shariah law and common law systems. Traditionally, the Pakistani legal system adapted the pre-1947 colonial law for local use. Amendments to these colonial laws, in particular inspired by the Islamic traditions, have been interspersed in intervals. As a result, the Pakistan legal system retains fundamental common law doctrines (such as binding precedent and delegated legislation) while gradually integrating laws of Islamic origin within the existing common law framework. However, Pakistan's legal system is far from being a complete mirror of the English legal system. One such major distinction is that …

Is The Anti-Muhammad Film Constitutionally Unprotected 'Fighting Words'?, Kent Greenfield

Kent Greenfield

No abstract provided.

A New Strategy To Fight Citizens United, Kent Greenfield

Kent Greenfield

No abstract provided.

Panelist, Control The Corporation Conference, Kent Greenfield

Kent Greenfield

Website for the conference videos: http://csrl.org/2012/04/14/control-the-corporation-conference-videos/

Obama’S Odds Of Winning The Health Care Ruling: 37%, Kent Greenfield

Kent Greenfield

No abstract provided.

Is The Sexual Promiscuity Of Straight Men A Reason To Oppose Gay Marriage?, Kent Greenfield

Kent Greenfield

No abstract provided.