Law Commons^™

Labor Relations And Labor Law In Japan, Manabu Matsunaka

Manabu Matsunaka

This article discusses the relationship between Japanese labor law and employment customs, building on this rationalistic understanding of the Japanese employment customs. Our basic conclusion is as follows. The Japanese employment custom developed naturally through an agreement among the members of Japanese employment society and attained efficient economic performance up till the 1990s. During the time, the Japanese labor law mainly worked toward setting the stage for private bargaining and respected its agreement instead of enforcing the desirable result directly through legal regulations. Through this indirect approach toward labor relations in Japan, at least part of the Japanese labor law …

The Next Stage Of Health Care Reform: Controlling Costs By Paying Health Plans Based On Health Outcomes, Dale B. Thompson

Dale Thompson

The predominant form of paying for health care in the United States (Fee-for-Service) creates inefficient incentives and leads to rising costs. A number of changes were incorporated into the health care reform legislative package of 2010, but these changes will not stop rising costs. Instead, this article proposes that the reimbursement structure for the Medicare Advantage program be revised so that medical plans receive their payments based on delivery of health outcomes, not delivery of health services. This approach utilizes centralized enforcement at the level of the plan, to provide incentives for the plan to encourage its providers to improve …

You Infringed My Patent, Now Wait Until I Sue You: The Federal Circuit’S Decision In Avocent Huntsville Corp. V. Aten International Co., Marta Vanegas

Marta R. Vanegas LL.M.

The Federal Circuit recently held that it lacked personal jurisdiction over a foreign defendant, because neither the patentee’s sales within the forum state, nor their patent enforcement letters constituted sufficient contacts for personal jurisdiction. This Note argues that the Federal Circuit erroneously held that a patentee’s sales in the forum state are irrelevant to specific personal jurisdiction. The Note surveys the legal background of personal jurisdiction in declaratory judgment actions, particularly in the patent context. The Note then argues that the Federal Circuit's recent line of cases incorrectly held that a patentee’s sales of the patented product within the forum …

Relational Contract Theory And Management Contracts: A Paradigm For The Application Of The Theory Of The Norms, Michael Diathesopoulos

Michael Diathesopoulos

This paper examines management contracts as a paradigm for the application of relational contracts theory and especially of the theory of contractual and relational norms. This theory, deriving from Macauley's implications, but structured and analysed by I.R. MacNeil gives us a framework for the explanation and understanding of contractual obligations and business relations' rules and practice. After presenting the key literature about the norms theory and especially defining the content of MacNeil's norms, we define management contracts as relations, characterised by a high relational element and we explain why, investigating all their features, which make them a suitable object for …

The Trouble With Investment Banking: Cluelessness, Not Greed, William C. Bunting

W. C. Bunting

We assume that the set of marketable financial instruments can be divided into two distinct categories: (1) easy-to-price and (2) difficult-to-price, and then isolate two behavioral effects as most important with respect to securities trading in difficult-to-price securities; specifically, the house-money-effect and the earned-money-effect. It is shown that these behavioral effects discourage profitable investment in research effort. We then argue that the Private Securities Litigation Reform Act (“PSLRA”) safe harbor should not apply to investment banks that issue/underwrite difficult-to-price securities. We also advocate for the return of the private investment banking partnership as the most sensible way in which to …

The United States – Korea Free Trade Agreement:, Y.S. Lee

Y.S. Lee

The U.S.-Korea Free Trade Agreement, currently awaiting ratification of legislatures of both countries, is known to be the most significant bilateral trade agreement since the conclusion of the North America Free Trade Agreement (NAFTA). Both governments have promoted the U.S.-Korea FTA as the trade agreement that will enhance trade between the two countries and promote economic prosperity. The article critically reviews the inherent features of the U.S.-Korea FTA and examines whether the FTA is expected to promote the promised economic prosperity.

Rights, Privileges And Access To Information, Alina Ng

Alina Ng

Protecting property rights in creative works represent a classic institutional approach to a specific economic problem of non-rivalness and non-excludability of information. By providing the copyright owner with an enforceable right against non-paying members of society, copyright laws encourage the production and dissemination of literary and artistic works to society for the purposes of learning. Implicit in the grant of property rights is the assumption that commercial incentives foster creative activity and productivity. In recent years, literary and artistic works have increasingly become the subject matter of exclusive property rights and control, particularly as new technologies emerge to provide users …

Proposed Horizontal Merger Guidelines: Economists’ Comment, Michael R. Baye, Aaron S. Edlin, Richard J. Gilbert, Jerry A. Hausman, Daniel L. Rubinfeld, Steven C. Salop, Richard L. Schmalensee, Joshua D. Wright

Richard Gilbert

No abstract provided.

Proposed Horizontal Merger Guidelines: Economists’ Comment, Michael R. Baye, Aaron S. Edlin, Richard J. Gilbert, Jerry A. Hausman, Daniel L. Rubinfeld, Steven C. Salop, Richard L. Schmalensee, Joshua D. Wright

Aaron Edlin

No abstract provided.

Law Firms Competing On The "Edge Of Chaos": Pro Bono's Role In A Winning Competitive Strategy, Tom Spahn

Tom Spahn

My Article takes an interdisciplinary approach to arguing that robust pro bono practices can give law firms a strategic advantage in the modern economy. I use modern economic theories, from game theory to complexity theory, to consider a pro bono practice’s role in responding to both internal and external competitive pressures. This leads to several key insights, such as pro bono’s ability to offset the dead-weight loss incurred when oligopolistic firms merge, its power to cause a paredo improvement to a firm’s position by moving it away from a non-cooperative Nash equilibrium, and the iterative recombination effect that such a …

Personal Bankruptcy And Tax Debt: An Examination Of The Usefulness Of Chapter 13 In Managing Irs Claims, Matthew Q. Mcpherson, Donald D. Hackney, Daniel L. Friesner, Candice L. Correia

Matthew Q McPherson

The bankruptcy code has been used, with varying degrees of success, to mitigate debtor obligations for certain classes of financial claims. Taxes are a unique class of claim. The IRS, as the enforcement tool of the Federal Government’s revenue generating operations, is armed with collection powers not available to ordinary creditors. These include, but are not limited to, liens, levies, attachments, assessment penalties, and, most significantly, the power to ignore debtor homestead protections. Bankruptcy can be very valuable to a debtor caught in an active IRS tax collection. For example, filing Chapter 13 bankruptcy stops the running of interest on …

Roe V Nebbia: Could Roe Be In Constitutional Jeopardy?, R. Morris Coats, Victor Parker, Shane Sanders, Bhavneet Walia

Shane D. Sanders

This study provides a positive analysis of abortion price regulation. Given Court precedent on the issues of abortion and state price regulation, the implementation of an abortion price control would create a potential legal conundrum. The price of abortion best meeting a state’s needs may affect incidence of legal abortion as would a direct market limitation or ban. Abortion price controls are evaluated with respect to relevant issues of liberty and confiscation. Given the Court's allowance of abortion as a marketable service allocated by a (restrictive) price mechanism, it is ambiguous and confounding that a state-controlled abortion price would present …

The International Anti-Money Laundering And The Combating The Financing Of Terrorism Regulation: A Critical Analysis Of Compliance Determinants In International Law., Navin Beekarry

Navin Beekarry

Concerns about risks of money laundering (ML) and terrorist financing (TF) to the stability of the international financial system have resurfaced in the context of the liquidity problems faced by financial institutions resulting from the recent credit crisis (2007). Because of their constantly evolving nature linked with new criminal activities and methodologies, ML and TF present threats of a systemic nature to the stability of the financial system. Addressing those changing faces of ML/TF and associated risks requires the design of a sufficiently flexible and adaptable international regulatory strategy. In this paper, I examine the international anti-money laundering and combating …

Measuring Business Damages In Fraudulent Inducement Cases, George P. Roach

George P Roach

Measuring Business Damages In Fraudulent Inducement Cases Abstract A cause of action for fraudulent inducement provides for expectancy damages and punitive damages, as well as legal fees and mental anguish in some statutory claims, prompting the Texas Supreme Court to express concern that fraudulent inducement can overwhelm other claims such as breach of contract. Litigation relating to the measure of damages for fraudulent inducement has resulted in a substantial number of cases in which juries, trial courts and courts of appeal are over-ruled or reversed. For example, in the last 30 years, more than two-thirds of the Texas Supreme Court’s …

The Effect Of Economic Integration With China On The Future Of American Corporate Law, Joseph Vining

Law & Economics Working Papers

China's development into a world economic power and its continuing integration with the United States economy raise the question whether China's own history and the socialist context of its domestic corporate law may affect the meaning of business terms in use both internationally and in American domestic corporate law. Of particular interest is the question whether China's entry and impact may blunt the late-twentieth century effort in the United States to change the legal sense of the purpose of an American business corporation.

Comparative Efficiency In International Sales Law, Larry A. Dimatteo, Daniel T. Ostas

Larry A DiMatteo

The article employs the method of the economic analysis of law (EAL) in a comparative context. In particular, it assesses the efficiency of select provisions of the United Nations Convention on Contracts for the International Sale of Goods (CISG). The CISG is the law of the United States and over 70 other countries. It reflects a culmination of a century-old process of failed attempts to achieve an international sales law. The drafting process involved intense negotiation and compromise between representatives of the common and civil law legal traditions. As a result, the CISG provides in an interesting amalgam of civil …

Double Marginalization And The Counter-Revolution Against Liberal Airline Competition, Hubert Horan

Hubert Horan

Summary: In the last decade, the Department of Transportation has abandoned its previously liberal, market-oriented policies towards international airline competition. While the policies of the 1980s and 90s were designed to maximize industry competitive dynamics so that consumers could benefit from ongoing improvements in price and efficiency levels, recent DOT policies have sought to reduce competition and entrench the position of the largest carriers. These policies have already led to the consolidation of 26 previously independent transatlantic airlines into three collusive alliances that would be virtually immune from future competitive challenges, and in 2009 the DOT has initiated a process …

The Relation Between Firm-Level Corporate Governance And Market Value: A Study Of India, Bala Balasubramanian, Bernard S. Black, Vikramaditya Khanna

Law & Economics Working Papers

Relatively little is known about the corporate governance practice of firms in emerging markets. We provide a detailed overview of the practices of publicly traded firms in India, and identify areas where governance practices are relatively strong or weak, relative to developed countries. We also examine whether there is a cross-sectional relationship between measures of governance and measures of firm performance and find evidence of a positive relationship for an overall governance index and for an index covering shareholder rights. The association is stronger for more profitable firms and firms with stronger growth opportunities.

A Theory Of Direct Democracy And The Single Subject Rule, Robert D. Cooter, Michael D. Gilbert

Michael D. Gilbert

Citizens in many states use direct democracy to make laws on everything from soda bottles and horse meat to affirmative action and same-sex marriage. Does direct democracy save citizens from corrupt legislators, or does it enfeeble competent representatives and empower an ignorant crowd? These ideological extremes often collide in court over a state constitutional provision—the single subject rule—that limits ballot initiatives to one “subject.” Opponents can invalidate an initiative by convincing a court that it contains two subjects (say, marriage and domestic partnerships), while proponents can prevail by showing that it contains only one (say, same-sex unions). Despite hundreds of …

The French Strategic Investment Fund: A Creative Approach To Complement Swf Regulation Or Mere Protectionism?, Jean-Rodolphe W. Fiechter Ll.M.

Jean-Rodolphe W. Fiechter

Sovereign Wealth Funds Regulation and Protectionism: Is the French Fonds Stratégique d’Investissement (FSI) a creative way of complementing the existing review mechanism or is it just another protectionist device? We come to the conclusion that although the FSI is an instrument of economic patriotism, it does not insulate France from the globalized world. It can even be seen as a good instrument to achieve SWF regulation.

Microfinance Regulation: Interest Rate Caps And Concept Of Usury, Gray L. Skinner, William H. Payne

Gray L Skinner

I. Between Scylla and Charybdis: The balancing act of lending to the poor (Abstract)

Over the past two decades, microfinance has grown rapidly, reaching markets around the world and garnering the attention of policy makers and the media. Microfinance is the practice of offering small-scale banking services to communities in developing nations to improve the client's productivity and quality of life. The microfinance industry has attracted investors and practitioners who wish to unlock the profit potential of new markets while also achieving a philanthropic goal. As microfinance has grown, however, so has the need for legal regulation. Experts and practitioners …

How "Big" Became Bad: America's Underage Fling With Universal Banks, Lawrence G. Baxter

Lawrence G. Baxter

In little more than a decade gigantic new financial institutions have emerged in America. These organizations are quite different from their predecessors in that they share the highly complex, diversified characteristics of foreign “universal banks.” They are still in the process of developing experienced and mature operational and risk management systems. During this same period, the regulatory framework necessary to match the size, power and hazards generated by these new universal banks remains underdeveloped, and the primary framework around which the system is being constructed, namely Basel II, lies in tatters in the wake of the financial crisis of 2007-08. …

Gender Budget Analysis In Morocco: Achieving Education Parity For Women And Girls, Christie J. Edwards

Christie J. Edwards Esq.

The Kingdom of Morocco has a long history of stability and democracy in the North African region, in large part due to the government’s commitment to improving the lives and status of women and girls. In the past few years, Morocco has set ambitious goals for increased access for women and girls to education as key strategies for the country’s economic development. However, although the government has committed to these gender-specific policies, implementation of education and literacy programs has been sporadic and inconsistent due to the enormity of the problem of female illiteracy and the complexity of the solutions proposed …

Taking Bubbles Seriously In Contract Law, John P. Hunt

John P Hunt

This Article argues that bubbles driven by traders with poor judgment exist, can be identified on an aggregate level, and have negative effects on parties that are not involved in the bubble markets. If those premises are accepted, then failing to respect bubble contracts – rescinding bubble transactions – makes sense. Such a rule should deter the formation of bubbles. Moreover, the rule is not in serious tension with the principle of freedom of contract to the degree one might expect. The poor judgment exhibited during a bubble suggests that incapacity should, and mistake and fraud do, apply to a …

The Financial Crisis And The Future Of Law And Economics, Wladimir D. Kraus

Wladimir D. Kraus

A Failure of Capitalism is a multifaceted contribution to our understanding of the Great Recession. But, due to its overwhelmingly macroeconomic character and substance, the nuanced approach of the law and economics scholarship is virtually absent, and so is any plausible explanation of the financial crisis that touched off the great recession. This is puzzling, because attention to the economic consequences of the law seems to provide a much more powerful framework for understanding what caused the financial collapse, and it is a natural approach for scholars of law and economics to pursue.

When Natural Science Meets The Dismal Science, Stephanie Tai

Stephanie Tai

Both the natural sciences—such as ecology, biology, chemistry, and physics—and economics—the so-called “dismal science”— have become integral to contemporary governance. This article examines how the Supreme Court and appellate courts have taken into account developments in natural science and economics in evaluating Commerce Clause challenges to environmental laws, and applies this examination to the context of wetlands regulation. I present a descriptive claim: that courts, especially the Supreme Court, have already been incorporating new developments in science and economics in their Commerce Clause opinions; this use of developments in scientific and economic research, I contend, arises out of the empirical …

The Road To Nowhere: Caterpillar V. Usinor And Cisg Claims By Downstream Buyers Against Remote Sellers, Donald J. Smythe

Donald J. Smythe

The UN Convention on Contracts for the International Sale of Goods (CISG) was intended to unify international sales law and facilitate the expansion of international trade. It was, however, the product of a bargain between representatives from diverse legal systems and its rules are spare. This invites parties to international sales disputes to argue that its preemptive effect is narrow and that domestic legal rules should be used to fill the gaps. Courts are notoriously prone to the “homeward trend bias” and have frequently accepted such arguments. In Caterpillar v. Usinor the federal district court for the Northern District of …

The Elementary Economics Of Application Of Payments Doctrine: Walker Thomas Revisited, James W. Bowers

James W. Bowers

No abstract provided.

Braiding: The Interaction Of Formal And Informal Contracting In Theory, Practice And Doctrine, Ronald J. Gilson, Charles F. Sabel, Robert E. Scott

Ronald J. Gilson

This article studies the relationship between formal contract enforcement, where performance is encouraged by the prospect of judicial intervention, and informal enforcement, where performance is motivated by the threat of lost reputation and expected future dealings or a taste for reciprocity. The incomplete contracting literature treats the two strategies as separate phenomena. By contrast, a rich experimental literature considers whether the introduction of formal contracting and state enforcement “crowds out” or degrades the operation of informal contracting. Both literatures, however, focus too narrowly on formal contracts as a system of incentives for inducing parties to perform substantive actions, while assuming …

Braiding: The Interaction Of Formal And Informal Contracting In Theory, Practice And Doctrine, Ronald J. Gilson, Charles F. Sabel, Robert E. Scott

Ronald J. Gilson

This article studies the relationship between formal contract enforcement, where performance is encouraged by the prospect of judicial intervention, and informal enforcement, where performance is motivated by the threat of lost reputation and expected future dealings or a taste for reciprocity. The incomplete contracting literature treats the two strategies as separate phenomena. By contrast, a rich experimental literature considers whether the introduction of formal contracting and state enforcement “crowds out” or degrades the operation of informal contracting. Both literatures, however, focus too narrowly on formal contracts as a system of incentives for inducing parties to perform substantive actions, while assuming …