Law Commons^™

Lessons For Competition Policy From The Vitamins Cartel, William E. Kovacic

GW Law Faculty Publications & Other Works

Mergers have the potential for negative social welfare consequences from increased likelihood or effectiveness of future collusion. This raises the question of whether there are meaningful thresholds for the post-merger industry that should trigger significant scrutiny by the Department of Justice or Federal Trade Commission. This paper provides empirical analysis relevant to this question. The data does not come from an industry in which there were mergers, but instead from an industry in which explicit collusion was admittedly rampant in the 1990's, the Vitamins Industry. Different vitamin products are produced by different numbers of firms, and for different vitamin products, …

Taking Multinational Corporate Codes Of Conduct To The Next Level, Sean D. Murphy

GW Law Faculty Publications & Other Works

Over the course of the past thirty years, numerous non-state actor codes of conduct have emerged that seek to promote socially-responsible conduct of multinational corporations (MNCs), especially in the developing world. The objective of such codes is to prevent harm or mistreatment of persons or things caused by MNC operations (e.g., the existence of unhealthy worker conditions in an MNC factory). Such harm or mistreatment need not be a core concern for the corporate actor. Indeed, the MNC - in theory driven to maximize its profits although in practice driven by various factors - may benefit far more by inflicting …

Spare The Rod, Spoil The Director? Revitalizing Directors' Fiduciary Duty Through Legal Liability, Lisa M. Fairfax

GW Law Faculty Publications & Other Works

It appears that our society has tacitly agreed to spare corporate directors any significant legal liability - which includes both financial and incarceration - for failing to perform their duties as board members. Thus, over the last twenty years, there has been a virtual elimination of legal liability - particularly in the form of financial penalties - for directors who breach their fiduciary duty of care. This is true despite the fact that we entrust directors with the awesome responsibility of monitoring all of America's corporations as well as the officers and agents within those corporations. More surprisingly, this tacit …

The Bottom Line On Board Diversity: A Cost-Benefit Analysis Of The Business Rationales For Diversity On Corporate Boards, Lisa M. Fairfax

GW Law Faculty Publications & Other Works

The Bottom Line on Board Diversity: A Cost Benefit Analysis of the Business Rationales for Diversity on Corporate Boards critically examines the business rationales for diversity in order to determine whether they can or should be used to encourage greater diversity on the boards of major corporations. The Article acknowledges the validity of some of the business rationales for diversity within corporations more generally, but questions whether those rationales apply with as much force in the context of corporate boards and the obligations board members undertake. On this point, the Article concludes that such rationales promise more, and in some …

'Murder And The Reasonable Man' Revisited: A Response To Victoria Nourse, Cynthia Lee

GW Law Faculty Publications & Other Works

As King Solomon understood, custody disputes ordinarily allow no easy answers. Increasingly, legal actors have begun to rely on the child's custodial preference as a proxy for her best interests. In an effort to ascertain this preference without subjecting the child to the trauma of courtroom testimony, many states authorize courts to interview children in camera. Good intentions notwithstanding, these custody interviews pose considerable risk to children, to their parents, and to the State's best-interests quest.

These risks increase dramatically when in-camera interviews serve as tools for searching out preferences that have not been publicly volunteered; when children's preferences are …

Liberty Takings: A Framework For Compensating Pretrial Detainees, Jeffrey Manns

GW Law Faculty Publications & Other Works

This Article shows how the application of a takings paradigm to pretrial detention can mitigate the distorted incentives which shape bail hearings and plea bargaining. The case for compensating pretrial detainees poses challenges because the existence of probable cause of having committed a criminal offense combined with the presence of other risk factors formally legitimizes bail hearing decisions. However, this Article analogizes the taking of people to the taking of property to argue that pretrial detention constitutes a liberty taking which inflicts punishment on unconvicted defendants and creates incentives for false pleas and other perversions of justice. While society faces …

The Federal Marriage Amendment: To Protect The Sanctity Of Marriage Or Destroy Constitutional Democracy?, Joan Schaffner

GW Law Faculty Publications & Other Works

For the several years, primarily as a political ploy, the President and Republican Congress, proposed an amendment to the US Constitution to prohibit marriage between people of the same sex - the Federal Marriage Amendment. This article analyzed this proposed amendment in light of the constitutional principles that govern our society, individual rights, federalism, separation of powers, and judicial review. The article concludes that the FMA is itself constitutionally suspect and is more destructive, on balance, of the basic democratic constitutional principles than any amendment previously adopted or proposed. The amendment violates every tenet of constitutional democracy by: (1) expressly …

The Polymorphic Principle And The Judicial Role In Statutory Interpretation, Jonathan R. Siegel

GW Law Faculty Publications & Other Works

The Supreme Court's statutory interpretation cases present an ongoing clash between mechanical, textualist, rule-based interpretive methods that seek to limit the role of judicial choice and more flexible methods that call upon courts to exercise intelligent judgment. In the recent case of Clark v. Martinez, 125 S. Ct. 716 (2005), the mechanical view of judging prevailed. The Court applied a purported canon of statutory construction that requires that a single phrase in a single statutory provision must always have a single meaning. The Court said that any other interpretive approach would be novel and dangerous. The Court is wrong on …

A Model Regime Of Privacy Protection (Version 2.0), Daniel J. Solove, Chris Jay Hoofnagle

GW Law Faculty Publications & Other Works

This version incorporates and responds to the many comments that we received to Version 1.1, which we released on March 10, 2005.

Privacy protection in the United States has often been criticized, but critics have too infrequently suggested specific proposals for reform. Recently, there has been significant legislative interest at both the federal and state levels in addressing the privacy of personal information. This was sparked when ChoicePoint, one of the largest data brokers in the United States with records on almost every adult American citizen, sold data on about 145,000 people to fraudulent businesses set up by identity thieves. …

Melville's Billy Budd And Security In Times Of Crisis, Daniel J. Solove

GW Law Faculty Publications & Other Works

During times of crisis, our leaders have made profound sacrifices in the name of security, ones that we later realized need not have been made. Examples include the Palmer Raids, the McCarthy Era anti-Communist movement, and the Japanese-American Internment. After September 11th, this tragic history repeated itself. The Bush Administration has curtailed civil liberties in many ways, including detaining people indefinitely without hearings or counsel. These events give Herman Melville's "Billy Budd" renewed relevance to our times. "Billy Budd" is a moving depiction of a profound sacrifice made in the name of security. This essay diverges from conventional readings that …

Fourth Amendment Codification And Professor Kerr's Misguided Call For Judicial Deference, Daniel J. Solove

GW Law Faculty Publications & Other Works

This essay critiques Professor Orin Kerr's provocative article, The Fourth Amendment and New Technologies: Constitutional Myths and the Case for Caution, 102 Mich. L. Rev. 801 (2004). Increasingly, Fourth Amendment protection is receding from a litany of law enforcement activities, and it is being replaced by federal statutes. Kerr notes these developments and argues that courts should place a thumb on the scale in favor of judicial caution when technology is in flux, and should consider allowing legislatures to provide the primary rules governing law enforcement investigations involving new technologies. Kerr's key contentions are that (1) legislatures create rules …

The Faith-Based Initiative And The Constitution, Ira C. Lupu, Robert W. Tuttle

GW Law Faculty Publications & Other Works

This paper, originally presented as the Annual Lecture at DePaul University's Church/State Center, addresses the many constitutional issues raised by President George W. Bush's Faith-Based and Community Initiative. Part I of the paper provides the political and legal background of the Initiative, up to and including the recent flurry of Executive Branch activity to implement it. Part II of the paper constructs the constitutional prism through which we believe the Initiative, like all constitutional questions relating to religion, should be viewed. In particular, we analyze the law of the Religion Clauses in terms of the constitutional distinctiveness or non-distinctiveness of …

Understanding The Current Wave Of Procurement Reform - Devolution Of The Contracting Function, Christopher R. Yukins

GW Law Faculty Publications & Other Works

This brief paper proffers a conceptual model for procurement reform in the United States today. The paper argues that much of the current reform can be understood as an attempt to bring order to the devolution of the contracting function, from users, to agency contracting officials, to centralized purchasing agencies, and now, finally, to private contractors. The paper argues that this devolution is, in fact, an outsourcing of the contracting function, and that therefore classic models of private-sector outsourcing should be applicable. The government should, in other words, be asking whether the contracting function should be outsourced, and if so, …

Sarbanes-Oxley, Corporate Federalism, And The Declining Significance Of Federal Reforms On State Director Independence Standards, Lisa M. Fairfax

GW Law Faculty Publications & Other Works

Commentators have argued that the Sarbanes-Oxley Act of 2002 ("Sarbanes-Oxley" or the "Act") raises federalism concerns because it regulates the internal affairs of a corporation, including the composition of, and qualifications for, corporate boards, in a manner traditionally reserved to states. This Article responds to those claims, arguing that the Act reflects a relatively minimal intrusion into state law, particularly with regard to issues of director independence. This Article further argues that the Act's failure to disturb state law on these issues may impede its ability to tighten director independence standards and by extension may undermine its ability to improve …

Unitary Judicial Review, Bradford R. Clark

GW Law Faculty Publications & Other Works

Two hundred years have passed since the Supreme Court's decision in Marbury v. Madison, yet debate continues over the origins and legitimacy of judicial review. Although modern commentators generally accept judicial review with little or no reservation, some remain skeptical. One of the strongest and most sustained challenges comes from Larry Kramer, who has recently argued that the Founders did not authorize judicial review of the scope of federal powers under the original Constitution. At the same time, Kramer maintains that the Founders expected judicial review both to prevent states from undermining federal supremacy and to enforce individual rights. Such …

Beyond Retribution And Impunity: Responding To War Crimes Of Sexual Violence, Naomi R. Cahn

GW Law Faculty Publications & Other Works

Beyond Retribution and Impunity: Responding to War Crimes of Sexual Violence articulates principles for an approach to gender-based violence during conflict and post-conflict that operates within three different meanings of justice: criminal/civil justice, restorative justice, and what I define as social services justice. The article argues that responses to sexual violence must integrate legal and nonlegal, national, international, and local approaches, and must respond to both short and longer-term needs. It focuses on victims of sexual violence in the Democratic Republic of the Congo during what has been called the First World War in Africa, which occurred from 1996-2003.

Joseph …

Foundations Of International Environmental Law, Dinah L. Shelton

GW Law Faculty Publications & Other Works

The introductory chapter of this book reviews the religious, ethical, and philosophical underpinnings of environmental law. Judeo-Christian religions, Islam, and Buddhism all contain guidance about how to interact with the environment. Although early treaties reflect a belief that humans had the right to use nature to their benefit without any restrictions, later policies aim “to reconcile competing social and economic policies in order to obtain equitable sharing of resources.” The chapter discusses features of the economic system that present challenges to preserving the environment, including tragedy of the commons and competitive disadvantage. Finally, the article describes international law sources of …

Choosing Gatekeepers: The Financial Statement Insurance Alternative To Auditor Liability, Lawrence A. Cunningham

GW Law Faculty Publications & Other Works

Positioned in a lively current debate concerning how to design auditor incentives to optimize financial statement auditing, this Article presents the more ambitious financial statement insurance alternative. This breaks from the existing securities regulation framework to draw directly on insurance markets and law. Based on upon an evaluation of major structural and policy-related features of the concept, the assessment prescribes a framework to permit companies, on an experimental-basis and with investor approval, to use financial statement insurance as an optional alternative to the existing model of financial statement auditing backed by auditor liability.

The financial statement insurance concept, pioneered by …

A New Product For The State Corporation Law Market: Audit Committee Certifications, Lawrence A. Cunningham

GW Law Faculty Publications & Other Works

Audit committees of corporate boards of directors are central to corporate governance for many corporations. Their effectiveness in supervising financial managers and overseeing the financial reporting process is important to promote reliable financial statements. This centrality suggests that it is likewise important for investors and others to have a basis for justifiable confidence in audit committee effectiveness. At present, there is no such mechanism. This Article explains why, considers a way states can provide it and assesses as low the likelihood that states will do so. In the swirling corporate governance reforms led by SOX, the SEC, SROs and PCAOB, …

A Model Financial Statement Insurance Act, Lawrence A. Cunningham

GW Law Faculty Publications & Other Works

Building on companion work investigating the efficacy of financial statement insurance (FSI) as an alternative to traditional auditor liability (ssrn.com/abstract=554863), this Article presents the terms of a national enabling statute to implement this concept. The Model Financial Statement Insurance Act uses the architecture of the U.S. Trust Indenture Act of 1939. It authorizes issuer application for qualification, in connection with annual proxy statement filings, of policies of financial statement insurance. The Model FSI Act deems a series of provisions necessary to achieve securities law objectives to be part of all financial statement insurance policies so proposed, and requires insurers to …

Sources Of Federalism: An Empirical Analysis Of The Court's Quest For Original Meaning, Peter J. Smith

GW Law Faculty Publications & Other Works

Although a debate continues to rage in the academy and on the Court about the propriety of originalism as a methodology of constitutional interpretation, in federalism cases both the majority and the dissent on the current Court appear to have embraced the approach. Yet their agreement ends there; the Court has consistently divided 5-4 in federalism cases. What explains the disagreement among Justices who appear to agree that the original understanding of the Constitution is also its current meaning? This article presents the results of a study of citation patterns in federalism cases since 1970. The study demonstrates that the …

The Centrality Of Military Procurement: Explaining The Exceptionalist Character Of United States Federal Public Procurement Law, Joshua I. Schwartz

GW Law Faculty Publications & Other Works

This study builds upon prior work that delineates opposing tendencies of exceptionalism and congruence that measure the degree to which a body of public contracts law diverges or adheres to the norms of private contract law. This study has two objectives. First, itseeks to define more precisely, and track the incidence and locus of a phenomenon described as exceptionalism in public procurement law. Exceptionalism enhances the powers or reduces the liabilities of the government with respect to its private contracting partners. The first branch of this study also seeks to distinguish such true exceptionalism from a phenomenon of reverse exceptionalism …

The Biological Basis Of Commitment: Does One Size Fit All?, Naomi R. Cahn, June Carbone

GW Law Faculty Publications & Other Works

Understanding the biological roots of intimate behavior is a complex undertaking that involves the integration of evolutionary biology, evolutionary psychology, neuroscience, anthropology and sociology. Evolutionary biology describes theories that explain the persistence of certain types of behavior in terms of presumed evolutionary pressures or advantages, focusing on the human mind. Evolutionary biologists assume that behavior that maximizes the presence of associated genes in the next generation is the behavior most likely to persist. In this paper, we take the growing insights that arise from the study of the biology of attachment to frame the emerging policy choices underlying the governance …

Brown And The Contemporary Brazilian Struggle Against Racial Inequality: Some Preliminary Comparative Thoughts, Robert J. Cottrol

GW Law Faculty Publications & Other Works

Brown v. Board of Education, the Supreme Court's celebrated 1954 decision that ended segregation in the United States, did not end a caste based inequality among the races. One of the nations currently struggling with such a legacy of discrimination is Brazil. Brazil's path to overcome structural inequality has some interesting parallels and differences with the American experience.

Writings by Brazilian legal scholars such as Joaquim B. Barbosa Gomes and Hedio Silva Jr. had bolstered the thought that the American civil rights experience has lessons for Brazil. This experience, which was greatly shaped by Brown, contributed to the growth of …

Thomas Jefferson Counts Himself Into The Presidency, David Fontana, Bruce Ackerman

GW Law Faculty Publications & Other Works

The Constitution instructs the President of the Senate to open the ballots submitted by members of the Electoral College, but it provides little guidance when a ballot turns out to be defective. This article provides the first in-depth consideration of two early precedents. Both Vice-President John Adams and Vice-President Thomas Jefferson confronted problems when counting the electoral votes in 1797 and 1801, respectively. Both men were placed in the awkward position of ruling on matters involving an election in which they were leading presidential candidates, but Jefferson's problem was more serious. In 1801, Georgia's electors cast their votes for Jefferson …

Environmental Regulation, Energy, And Market Entry, Richard J. Pierce Jr

GW Law Faculty Publications & Other Works

As my contribution to a symposium, I was asked to identify and to discuss conflicts between environmental regulation and pursuit of the goals of national energy policy. I identify three contexts in which I see clear conflicts between environmental regulation and energy policy - gasoline production, importation of liquefied natural gas, and transmission of electricity. In each case, I conclude that the conflict is attributable to state and local regulations. In the case of the gasoline market, I conclude that the market is beginning to perform poorly because of a combination of state land use regulations that make it impossible …

The Tyranny Of Time: Vulnerable Children, Bad Mothers, And Statutory Deadlines In Parental Termination Proceedings, Catherine J. Ross

GW Law Faculty Publications & Other Works

This paper explores issues raised by the Adoption and Safe Families Act of 1997 (ASFA) and contends that the Act may have unwittingly harmed some children and mothers by creating a categorical imperative that a child's health and safety must be a paramount consideration in child welfare decisions. After discussing the reforms made by the Act, this paper analyzes hard cases, in particular cases involving substance abusing mothers and battered mothers, and concludes that in some instances children's interests in these cases might be better served by a flexible standard where the child asserts a claim to a continued relationship …

The Digital Person: Technology And Privacy In The Information Age (Introduction), Daniel J. Solove

GW Law Faculty Publications & Other Works

THE DIGITAL PERSON: TECHNOLOGY AND PRIVACY IN THE INFORMATION AGE (ISBN: 0814798462) (NYU Press 2004) explores the social, political, and legal implications of the collection and use of personal information in computer databases. In the Information Age, our lives are documented in digital dossiers maintained by hundreds (perhaps thousands) of businesses and government agencies. These dossiers are composed of bits of our personal information, which when assembled together begin to paint a portrait of our personalities. The dossiers are increasingly used to make decisions about our lives - whether we get a loan, a mortgage, a license, or a job; …

The Appeal And Limits Of Internal Controls To Fight Fraud, Terrorism, Other Ills, Lawrence A. Cunningham

GW Law Faculty Publications & Other Works

Congress responded in similar ways to 2001's major national crises: bolstering internal controls in corporate America under the Sarbanes-Oxley Act in response to Enron's debacle and imposing internal controls on its financial services industry under the USA PATRIOT Act in response to 9/11's terrorism. These reflexive legislative responses to national crisis fit a pattern of proliferating controls as a first-order policy option dating to the mid-1970s. Documenting this proliferation and untangling the definition of internal controls, this Article attributes the appeal of internal controls as a policy option to systemic forces including the movements for deregulation and cooperative compliance, resistance …

'But I Thought He Had A Gun' - Race And Police Use Of Deadly Force, Cynthia Lee

GW Law Faculty Publications & Other Works

It is undisputed that Blacks are disproportionately represented among the victims of police shootings. In a comprehensive review of the literature on police use of deadly force, James Fyfe reports that every study that has examined this issue [has] found that blacks are represented disproportionately among those at the wrong end of police guns. Although Blacks represent approximately 13 percent of the population in the United States, in parts of the country they constitute 60 to 85 percent of the victims of police shootings. On average, Blacks are more than six times as likely as Whites to be shot by …