Law Commons^™

Gatekeeper Failures: Why Important, What To Do, Merritt B. Fox

Michigan Law Review

The United States was hit by a wave of corporate scandals that crested between late 2001 and the end of 2002. Some were traditional scandals involving insiders looting company assets - the most prominent being Tyco, HealthSouth, and Adelphia. But most were what might be called "financial scandals": attempts by an issuer to maximize the market price of its securities by creating misimpressions as to what its future cash flows were likely to be. Enron and WorldCom were the most spectacular examples of these financial scandals. In scores of additional cases, the companies involved and their executives were sued by …

An "Unintended Consequence": Dred Scott Reinterpreted, Sam Erman

Michigan Law Review

Austin Allen's monograph marks the 150th anniversary of the decision in Dred Scott v. Sandford with a revisionist interpretation of that oft-examined case. Many scholars have portrayed the case as a proslavery decision that fanned sectional fires. After all, the Court held that blacks were not U.S. citizens and that Congress was impotent to bar slavery in U.S. territories. Allen, by contrast, understands the case primarily as a judicial attempt to rationalize federal commerce and slavery jurisprudences. Part I argues that this ambitious reinterpretation enriches, but does not topple, existing Dred Scott historiography. In the case of the Court's citizenship …

Law Enforcement In Subordinated Communities: Innovation And Response, Richard Delgado

Michigan Law Review

Policing styles and policy reform today exhibit a ferment that we have not seen since the turbulent sixties. The reasons propelling reform include some of the same forces that propelled it then - minority communities agitating for a greater voice, demands for law and order - but also some that are new, such as the greater premium that society places on security in a post-9/11 world. Three recent books discuss this new emphasis on styles of policing. Each centers on policing in minority communities. Steve Herbert's Citizens, Cops, and Power: Recognizing the Limits of Community examines the innovation known as …

What Do We Talk About When We Talk About Mass Torts?, Anthony J. Sebok

Michigan Law Review

Twenty years ago, Deborah Hensler and a team of scholars at the RAND Corporation's Institute for Civil Justice issued a report entitled Trends in Tort Litigation: The Story Behind the Statistics. Pressure had been mounting both in the business community and the Republican Party to "reform" tort law throughout the 1980s. There was concern that Americans "egged on by avaricious lawyers, sue[d] too readily, and irresponsible juries and activist judges wayla[id] blameless businesses at enormous cost to social and economic well-being." The RAND report argued that the real risk of a torts "explosion" came from the world of mass …

War Tales And War Trials, Patricia M. Wald

Michigan Law Review

In this foreword, I will compare my experiences as a judge on the International Criminal Tribunal for the former Yugoslavia, and the work of war crimes tribunals generally, with a few of the recurrent themes in epic tales of war. Books and trials strive to educate and to persuade their audiences of the barbarity of war and its antipathy to the most fundamental norms of a humane society.3 War crimes tribunals began with Nuremberg and have proliferated in the past fifteen years. These tribunals were established to try and to punish individuals for violations of international humanitarian law ("IHL")-the so-called …

Judging Sex In War, Karen Engle

Michigan Law Review

Rape is often said to constitute a fate worse than death. It has long been deployed as an instrument of war and outlawed by international humanitarian law as a serious-sometimes even capital-crime. While disagreement exists over the meaning of rape and the proof that should be required to convict an individual of the crime, today the view that rape is harmful to women enjoys wide concurrence. Advocates for greater legal protection against rape often argue that rape brings shame upon raped women as well as upon their communities. Shame thus adds to rape's power as a war weapon. Sexual violence …

Scandal, Sukyandaru, And Chouwen, Benjamin L. Liebman

Michigan Law Review

This Review proceeds in four parts. Part I describes West's account of scandal in Japan and the United States and explores some of the ramifications of his account. Part II examines the formation of scandal in contemporary China. Part III compares scandal in China with West's conclusions about scandal in Japan and the United States. Part IV discusses defamation litigation in China, with a view to adding further comparative insight to West's discussion of Japanese libel suits.

Free Speech And The Case For Constitutional Exceptionalism, Roger P. Alford

Michigan Law Review

Embodied in the Universal Declaration of Human Rights is the evocative proposition that "[e]veryone has the right to freedom of opinion and expression." Beneath that abstraction there is anything but universal agreement. Modern democratic societies disagree on the text, content, theory, and practice of this liberty. They disagree on whether it is a privileged right or a subordinate value. They disagree on what constitutes speech and what speech is worthy of protection. They disagree on theoretical foundations, uncertain if the right is grounded in libertarian impulses, the promotion of a marketplace of ideas, or the advancement of participatory democracy. They …

Rational Choice, Reputation, And Human Rights Treaties, Alex Geisinger, Michael Ashley Stein

Michigan Law Review

Part I of this Review sets forth Guzman's general theory of international law with specific consideration of the way reputation influences state behavior. Part II then tests Guzman's overarching thesis by applying it to human rights treaties and concludes that explaining states' entry into human rights treaties requires a broader conception of reputation than Rational Choice allows.

Senator Mccain’S Corporate Tax Proposals: A Critical Examination, Reuven S. Avi-Yonah

Other Publications

Senator John McCain (R-AZ) has proposed two major changes to the corporate tax code: cutting the corporate tax rate from 35 percent to 25 percent and allowing corporations to deduct the full cost of investments in technology and equipment in the first year, an accounting process known as expensing. The first proposal aims to enhance U.S. economic competitiveness, create jobs, and increase wages. The second proposal aims in particular to boost capital expenditures and “reward investment in cutting-edge technologies.”

Both measures, if enacted by Congress, would greatly alter the role of corporate revenues in our tax system. Corporate taxes account …

Vol. 59, No. 3, September 30, 2008, University Of Michigan Law School

Res Gestae

•The Inaugural ELPP Conference •Letter to the Editor •MLawLive •Kennedy •Best of LawOpen •Generation Project •Kicking it Old School •Mamdouh •The Food Court •Between the Briefs •LSSS Statements

Vol. 58, No. 11, March 18, 2008, University Of Michigan Law School

Res Gestae

•Law School Building Expansion •PRS, Part Deux •SFF Photos •Lethal Injection Debate •Symposia! •Blast From the Past •New Tax Group

Corporate Governance, Enforcement, And Firm Value: Evidence From India, Dhammika Dharmapala, Vikramaditya Khanna

Law & Economics Working Papers Archive: 2003-2009

This paper analyzes the effects of corporate governance reforms and enforcement on stock market development and firm value, using a sequence of corporate governance reforms in India. Our results, taken together, present a strong case for a causal effect of the reforms on firm value, and also underscore the importance of enforcement. The reforms (referred to as Clause 49 of the listing agreement) were phased in over the period 2000-2003. A large number of firms were completely exempt from the new rules, and the complex criteria for the application of Clause 49 created considerable overlap in the characteristics of affected …

Accredited Indians: Increasing The Flow Of Private Equity Into Indian Country As A Domestic Emerging Market, Gavin Clarkson

Law & Economics Working Papers Archive: 2003-2009

Indian Country is America’s domestic emerging market, and as in a number of emerging markets, many successful businesses in Indian Country are starving for expansion capital. The US Treasury estimates that the private equity deficit in Indian Country is $44 billion. While the handful of wealthier tribes might be logical investors in private equity funds deploying capital in Indian Country, the existing securities laws present a significant impediment. In particular, Regulation D of the Securities Act of 1933 does not treat tribes as “accredited investors,” thus denying those tribes the ability to participate in the private equity market. Since there …

Hustle And Flow: A Social Network Analysis Of The American Federal Judiciary, Daniel Martin Katz, Derek Stafford

Law & Economics Working Papers Archive: 2003-2009

Scholars have long asserted that social structure is an important feature of a variety of societal institutions. As part of a larger effort to develop a fully integrated model of judicial decision making, we argue that social structure—operationalized as the professional and social connections between judicial actors—partially directs outcomes in the hierarchical federal judiciary.

Since different social structures impose dissimilar consequences upon outputs, the precursor to evaluating the doctrinal consequences that a given social structure imposes is a descriptive effort to characterize its nature. Given the difficulty associated with obtaining appropriate data for federal judges, it is necessary to rely …

Confidence In The Nonprofit Sector Through Sarbanes-Oxley-Style Reforms, Joseph Mead

Michigan Law Review

Over the past several years, the nonprofit sector suffered a series of highly visible scandals that shook the public's confidence in charitable organizations. Concerned politicians and nonprofit leaders responded with a variety of reforms inspired by the Sarbanes-Oxley Act. The Note focuses on three such reforms: requiring nonprofit officers certify financial statements, mandating audits of nonprofits' financial statements, and imposing independent audit committees on nonprofit boards of directors. This Note argues that, contrary to the conclusions of many commentators, these reforms will provide a net benefit to the nonprofit sector by increasing donor confidence while imposing minimal costs.

Don't Cross The Streams: Past And Present Overstatement Of Customary International Law In Connection With Conventional Fair And Equitable Treatment Obligations, Theodore Kill

Michigan Law Review

The obligation to provide fair and equitable treatment to foreign investors and investments has existed as a concept of international economic law at least since the 1919 Covenant of the League of Nations. The fair and equitable treatment provision is a key protection contained in the vast majority of modern bilateral investment treaties. Tribunals adjudicating alleged breaches of these fair and equitable treatment provisions have not arrived at a uniform interpretation of the term. As a threshold issue, however each tribunal must address the question of whether a state's obligations under a given treaty's fair and equitable treatment provision will …

Federal Fairness To State Taxpayers: Irrationality, Unfunded Mandates, And The "Salt" Deduction, Brian Galle

Michigan Law Review

By sheer dollars alone, the largest impact of the Alternative Minimum Tax is to deny many taxpayers the deduction for the taxes they paid to their state and local governments under § 164 of the Internal Revenue Code. This Article provides a fine-grained analysis of the overall fairness of the state-andlocal- tax deduction--and, by implication, the fairness of its partial repeal through the Alternative Minimum Tax. I offer for the first time a close examination of how newly understood limits on taxpayer mobility and rationality might affect individuals' choices of bundles of local taxes and localgovernment services, which in turn …

Vol. 58, No. 9, February 19, 2008, University Of Michigan Law School

Res Gestae

•PRS Registration Explained •Secret Crushes •Sex Answers •Restaurant Review •SFF Auction Preview •Date Auction Pics •Grades

The Significance Of The Local In Immigration Regulation, Cristina M. Rodríguez

Michigan Law Review

The proliferation of state and local regulation designed to control immigrant movement generated considerable media attention and high-profile lawsuits in 2006 and 2007. Proponents and opponents of these measures share one basic assumption, with deep roots in constitutional doctrine and political rhetoric: immigration control is the exclusive responsibility of the federal government. Because of the persistence of this assumption, assessments of this important trend have failed to explain why state and local measures are arising in large numbers, and why the regulatory uniformity both sides claim to seek is neither achievable nor desirable. I argue that the time has come …

Bankruptcy Vérité, Lynn M. Lopucki, Joseph W. Doherty

Michigan Law Review

In the empirical study we report in Bankruptcy Fire Sales, we compared the recoveries from the going-concern bankruptcy sales of twenty-five large, public companies with the recoveries from the bankruptcy reorganizations of thirty large, public companies. We found that, controlling for the asset size of the company and its presale or pre-reorganization earnings ("EBITDA"), reorganization recoveries were more than double sale recovenes. We are honored that Professor James J. White has chosen to comment on our study. White is an eloquent defender of the status quo, pulls no punches, and always has something interesting to say. Bankruptcy Noir is …

Addressing Default Trends In Patent-Based Section 337 Proceedings In The United States International Trade Commission, John C. Evans

Michigan Law Review

Section 337 of the Tarif Act of 1930 empowers the United States International Trade Commission to investigate imports to ensure imports do not infringe on U.S. trademarks. The Commission permits patent, copyright, and trademark owners to notify the Commission of possibly infringing imports and to obtain exclusion orders that prevent importation of products that infringe their intellectual property. The total number of investigations increased from 1996 to 2005, yet the proportion of respondent defaults rose as well. The increase in defaults suggests there is some systemic difficulty in ensuring full participation. This Note argues that the res judicata effects of …

Vol. 58, No. 8, January 29, 2008, University Of Michigan Law School

Res Gestae

•Professor Forman, Jr.'s Dream •Transitioning to Working Life •Bar Month Pics •Between the Briefs •Mr. Wolverine Pics •No Other Warranties Expressed or Implied •Crossword

Condemnation Without Justification, Douglas A. Kahn

Articles

On August 6-8, 2007, Prof. Neil Buchanan posted in Michael Dorf’s blog (http://michaeldorf.org/; for the blog entry regarding the death tax, see http:// michaeldorf.org/2007/08/dishonest-tax-rhetoric-part-3- of-3.html) a three-part series on what he deemed to be examples of political use of terminology to describe tax issues in a manner that is likely to mislead the public. Prof. Buchanan described this practice as ‘‘dishonest tax rhetoric.’’ He awarded first, second, and third prizes for the most egregious examples of dishonest rhetoric. I, however, found no objection to the usages he considered to be the two worst examples. Let us consider his first and …

What Explains Insider Trading Restrictions? International Evidence On The Political Economy Of Insider Trading Regulation, Laura N. Beny

Law & Economics Working Papers Archive: 2003-2009

This article investigates the determinants of insider trading regulation across countries. The article presents a political economy analysis of such regulation that takes into account both private (distributional) and public (economic efficiency) considerations. The model cannot be tested directly because the relevant private preferences and social costs are unobservable. However, existing theories of capital market development suggest that various observable social factors can explain the diversity of insider trading policies across countries. In turn, these social factors should reveal the underlying preferences and social costs motivating such regulation.

The main finding, based on data from a cross section of countries …

A Renewed Role For Conservation In Environmental Policy, Amie Medley

Michigan Law Review First Impressions

Not since President Carter's impassioned speeches in the 1970s, which warned Americans that their country's dependence on oil was "likely to get progressively worse through the rest of this century," has there been serious attention to the role conservation should play in addressing environmental issues such as climate change and sustainability. The next presidential administration should highlight the importance of individuals taking action in their homes and communities in order to decrease the unsustainable demand for natural resources.

America’S Next Move: The United States’ Domestic And International Policies On Global Warming After The Kyoto Protocol, Joshua Van Der Ploeg

Michigan Law Review First Impressions

The international Kyoto Protocol to combat global warming—negotiated in 1997 and ratified by nearly all signatory countries except the United States and Kazakhstan—will expire in 2012, at the end of the upcoming presidential term. Whichever candidate the American people select to lead our nation for the next four years will face two great challenges to confront global climate change: what direction to take the country within the international community as the world decides how to replace Kyoto, and what policies to implement domestically to help curb this impending crisis.

Sustainable Watersheds, Jonathan Z. Cannon

Michigan Law Review First Impressions

By any interpretation of sustainability, additional public and private investment should be made to protect and restore watersheds and their incorporated landscapes as sources of ecosystem services. This investment may require reducing current consumption but is justified because it will enhance the well being of the present generation and also enable future generations to enjoy a quality of life equal to our own.

A U.S.-China Partnership To Protect Our Climate, Thomas P. Lyon

Michigan Law Review First Impressions

Climate change is an environmental problem of global dimensions, but we lack a system of international law that can impose a coordinated response. Bilateral agreements between key nations may present a solution. A partnership between the United States and China to develop technology for carbon capture and sequestration offers hope for mitigating the climate impacts of China’s rapidly growing number of coal-burning electric power plants.

A Climate Agenda For The New President, Lisa Heinzerling

Michigan Law Review First Impressions

The Bush Administration squandered eight years denying the reality of climate change and delaying action on it. Nevertheless, the president who comes into office in January will face two happy realities. First, whatever the Bush Administration has done (through obstruction or inaction) on climate change can easily be undone due to its legal and scientific flimsiness. And second, statutes now on the books provide plenty of legal authority for swift action on the most important environmental issue of our time.