Law Commons^™

Shareholder Primacy And The Moral Obligation Of Directors, Mark J. Loewenstein, Jay Geyer

Publications

One of the most written-about and important topics in corporate law is the fiduciary obligations of corporate directors. Increasingly, critics of American capitalism have urged that corporations, and implicitly, corporate directors, act in a more socially responsible fashion and thus eschew the notion that shareholder primacy is the exclusive guide to a director’s fiduciary duty. Under this view, directors must consider the effect of their actions on “stakeholders” other than shareholders and be guided by morality—doing the right thing—when making business judgments.

When directors move away from shareholder primacy, however, decision-making becomes more difficult and problematic. This article analyzes the …

Mandatory Disclosure In Primary Markets, Andrew A. Schwartz

Publications

Mandatory disclosure—the idea that companies must be legally required to disclose certain, specified information to public investors—is the first principle of modern securities law. Despite the high costs it imposes, mandatory disclosure has been well defended by legal scholars on two theoretical grounds: ‘Agency costs’ and ‘information underproduction.’ While these two concepts are a good fit for secondary markets (where investors trade securities with one another), this Article shows that they are largely irrelevant in the context of primary markets (where companies offer securities directly to investors). The surprising result is that primary offerings—such as an IPO—may not require mandatory …

The Evolution Of Entrepreneurial Finance: A New Typology, J. Brad Bernthal

Publications

There has been an explosion in new types of startup finance instruments. Whereas twenty years ago preferred stock dominated the field, startup companies and investors now use at least eight different instruments—six of which have only become widely used in the last decade. Legal scholars have yet to reflect upon the proliferation of instrument types in the aggregate. Notably missing is a way to organize instruments into a common framework that highlights their similarities and differences.

This Article makes four contributions. First, it catalogues the variety of startup investment forms. I describe novel instruments, such as revenue-based financing, which remain …

Agency Law And The New Economy, Mark J. Loewenstein

Publications

This article considers the status of workers in the "new economy," defined as the sharing economy (e.g., Uber, Lyft) and the on-demand economy. The latter refers to the extensive and growing use of staffing companies by established businesses in many different industries to provide all or a portion of their workforce. Workers in both the sharing economy and the on-demand economy are, generally speaking, at a disadvantage in comparison to traditional employees. Uber drivers, for example, are typically considered independent contractors, not employees, and therefore are not covered under federal and state laws that protect or provide benefits to employees. …

Reflections On Teaching Business Associations: The Case For Teaching More Agency And Unincorporated Business Entity Law, Mark J. Loewenstein

Publications

This paper argues for increased coverage of the law of agency and alternative entities in business associations courses.

Imputation, The Adverse Interest Exception, And The Curious Case Of The Restatement (Third) Of Agency, Mark J. Loewenstein

Publications

The imputation doctrine in the common law of agency provides that knowledge of an agent acquired in the course of the agency relationship is imputed to the principal. An important exception to the imputation doctrine, known as the adverse interest exception, provides that knowledge is not imputed if it is acquired by the agent in a course of conduct that is entirely adverse to the principal. These doctrines play an important role in sorting out liability when senior management of a corporation engages in a financial fraud that harms the company. Typically, new management is brought in and it sues …

Privacy & The Personal Prospectus: Should We Introduce Privacy Agents Or Regulate Privacy Intermediaries, Scott R. Peppet

Publications

No abstract provided.

Veil Piercing To Non-Owners: A Practical And Theoretical Inquiry, Mark J. Loewenstein

Publications

In the typical veil piercing case, the plaintiff seeks to hold the owners of an entity liable for the entity’s obligations. Recently, however, plaintiffs have sought to hold managers of an entity liable for the entity’s obligations even if the manager is not an owner. This article considers this phenomenon in light of the underlying theory of veil piercing and in the context of both corporate law and the law of limited liability companies. In brief, the theory of veil piercing in its traditional application – to shareholders of a corporation – is weak, and it is weaker still when …

Implementing American Health Care Reform: The Fiduciary Imperative, Dayna Bowen Matthew

Publications

The success of health reform under the Patient Protection and Affordable Care Act of 2010 will depend upon the sustainability of a brand new and infrastructure of entities, relationships, and procedures. So far, neither jurists, legislators, policy-makers, providers, payers, nor patients have identified an organizing paradigm to implement or regulate this vast new infrastructure. Legal scholars have been curiously absent from this policy discussion, offering little if any insight into the role law plays beyond the familiar political debates about health reform. This article draws a legal chair to the table and takes a refined look at the legal basis …

Fiduciary Duties And Unincorporated Business Entities: In Defense Of The "Manifestly Unreasonable" Standard, Mark J. Loewenstein

Publications

This article wades into the debate between contractarians and anti-contractarians over the extent to which statutes on unincorporated business entities should limit the ability of the participants in those entities to contract around fiduciary duties. Statutes enacted in the past several years provide considerable, but not complete, freedom to limit fiduciary duties. Contractarians argue that statutory limitations are inefficient and unnecessary, while anti-contractarians take the view that the statutes provide too much freedom of contract. This article stakes out a middle ground, arguing that the drafters of the statutes got it right and that in the absence of statutory limitations …

Trust, Guilt, And Securities Regulation, Peter H. Huang

Publications

This Article analyzes the importance of trust in securities investing and how guilt about breaching such trust has implications for securities regulation. Both U.S. federal securities laws and the regulations of the National Association of Securities Dealers impose high standards of professional conduct upon securities professionals. But exactly what are and should be the legal responsibilities of securities professionals remain the subject of much debate. In particular, courts disagree over when broker-dealers are fiduciaries of their clients. A legal consequence of a fiduciary relationship is a duty of fair dealing. This Article is the first to analyze the emotional, moral, …

Agenda: A Cartography Of Governance: Exploring The Province Of Environmental Ngos, University Of Colorado Boulder. School Of Law, University Of Colorado Boulder. Environmental Program, University Of Tulsa. National Energy-Environment Law & Policy Institute, University Of Colorado Boulder. United Government Of Graduate Students

A Cartography of Governance: Exploring the Province of Environmental NGOs (April 7-8)

Presented by: the Colorado Journal of International Environmental Law and Policy on April 7 & 8, 2001. Symposium director: Lakshman D. Guruswamy.

Co-sponsored by: University of Colorado School of Law, University of Colorado Environmental Program, University of Tulsa National Energy-Environment Law and Policy Institute, University of Colorado United Government of Graduate Students.

The papers and edited proceedings of the conference will be published in a special symposium issue of the Colorado Journal of International Environmental Law & Policy (CJIELP).

"The first objective of the Symposium was to understand and explore the growing importance of nongovernmental actors, and delineate the manner …

Globalization And The Nation State, Jayantha Dhanapala

A Cartography of Governance: Exploring the Province of Environmental NGOs (April 7-8)

15 pages.

The United Nations And Civil Society, Jayantha Dhanapala

A Cartography of Governance: Exploring the Province of Environmental NGOs (April 7-8)

7 pages.

The Conundrum Of Executive Compensation, Mark J. Loewenstein

Publications

Much of the scholarship on executive compensation that appears in law reviews assumes that large U.S. corporations overpay their chief executive officers ("CEOs"). This assumption is understandable, as many of these compensation packages are indeed stunning. The question of whether CEOs are overpaid, however, is complicated. Some scholars in other disciplines, principally in economics and management science, have studied the issue but, as this Article demonstrates, this literature does not confirm the assumption. Indeed, some studies suggest that CEO pay is competitive. Moreover, efforts to reduce the level of executive compensation may have the unintended consequence of achieving the opposite …

Notice And Notification Under The Revised Uniform Partnership Act: Some Suggested Changes, J. Dennis Hynes

Publications

This Article addresses the decision by the drafters of the revised Uniform Partnership Act (1996) (RUPA) to reduce the traditional defenses available to partnerships in apparent authority cases. RUPA eliminated the requirement that apparent authority claims against a partnership be based on the claimant's reasonable expectations. Under RUPA a partnership is liable for a partner's unauthorized act even when the claimant had reason to know the act was unauthorized. A defense based on the claimant's knowledge is effective only when the claimant actually knows--is cognitively aware--that the act was unauthorized. This Article argues that this places an unfair burden on …

Freedom Of Contract, Fiduciary Duties, And Partnerships: The Bargain Principle And The Law Of Agency, J. Dennis Hynes

Publications

No abstract provided.

Legislative Development, The Attorney Accountability Act: A Case Study Of The Complexities Of Incentive-Based Legal Reform, Jamie S. Henikoff, Scott R. Peppet

Publications

No abstract provided.

Chaos And The Law Of Borrowed Servant: An Argument For Consistency, J. Dennis Hynes

Publications

No abstract provided.

Lender Liability: The Dilemma Of The Controlling Creditor, J. Dennis Hynes

Publications

No abstract provided.

The Federal Coconspirator Exception: Action, Assertion, And Hearsay, Christopher B. Mueller

Publications

No abstract provided.

Agency And Insurance: Should The Defense Of Fraud By Its Own Agent Be Available To An Insurance Company Issuing Automobile Insurance?, J. Dennis Hynes

Publications

No abstract provided.

Removal Of The Corporate Director During His Term Of Office, Arthur H. Travers Jr.

Publications

The traditional rules governing the removal of corporate directors have evolved so as to insulate the board of directors from the shareholders who elect them. Professor Travers in his article examines initially the interests being advanced by protecting the board members from removal by their electorate. He then critically analyzes the law as it relates to these interests in order to suggest a more rational approach.