Law Commons^™

Politics And The Business Corporation, Robert H. Sitkoff

Law & Economics Working Papers Archive: 2003-2009

This essay explores the policy bases for, and the political economy of, the law's long-standing regulation of corporate political speech. The essay has three parts. First, it contends that the conventional justifications for regulating corporate interventions in politics -- that corporate donations unnaturally skew the political discourse (bad politics) and that corporate political donations harm shareholders (agency costs) -- assume irrational investors and substantial capital market inefficiency. Drawing on public choice theory, the essay also explores the aim of retarding rent-seeking as an alternative justification for regulating corporate interventions in politics. Second, the essay reexamines the history of the regulation …

Dying To Get Out Of Debt: Consumer Insolvency Law And Suicide In Japan, Mark West

Law & Economics Working Papers Archive: 2003-2009

This Article explores the complex relation between consumer insolvency law and suicide in Japan, where bankruptcies and suicides have increased dramatically in recent years. The statistical and interview evidence, some of which relates to the creation of a relatively efficient and socially acceptable insolvency mechanism in 2001, suggests that law is at least indirectly relevant to decisions to take one’s own life. Law can bring about debt control and stigma mitigation, each of which can lead to lower levels of stress and depression, each of which can lead to lower suicide rates. Still, responses to the law, even in relatively …

Employment Market Institutions And Japanese Working Hours, Mark West

Law & Economics Working Papers Archive: 2003-2009

Why do Japanese workers work such long hours? Beginning with a series of cases in the 1950s, Japanese courts drastically curtailed firms’ abilities to dismiss workers. As a consequence of the inability to dismiss workers legally, large Japanese firms hired a smaller number of workers than were necessary to fulfill capacity without overtime. Employers rely on the working hours of this undersized cadre of workers, carefully screened to rule out the slothful, as a buffer. In bad times, the size of the work force makes dismissal unnecessary. In good times, workers are forced to work long hours. While these court …

Recent Books, Michigan Law Review

Michigan Law Review

A list of books recenlty received by Michigan Law Review.

The "Horizontal Effect" Of Constitutional Rights, Stephen Gardbaum

Michigan Law Review

Among the most fundamental issues in constitutional law is the scope of application of individual rights provisions and, in particular, their reach into the private sphere. This issue is also currently one of the most important and hotly debated in comparative constitutional law, where it is known under the rubric of "vertical" and "horizontal effect." These alternatives refer to whether constitutional rights regulate only the conduct of governmental actors in their dealings with private individuals (vertical) or also relations between private individuals (horizontal). In recent years, the horizontal position has been adopted to varying degrees, and after systematic scholarly and …

Law, Share Price Accuracy, And Economic Performance: The New Evidence, Merritt B. Fox, Randall Morck, Bernard Yeung, Artyom Durnev

Michigan Law Review

Mandatory disclosure has been at the core of U.S. securities regulation since its adoption in the early 1930s. For many decades, this fixture of our financial system was accepted with little examination. Over the last twenty years, however, mandatory disclosure has been subject to intensifying intellectual crosscurrents. Some commentators hold out the U.S. system as the standard for the world. They argue that adoption by other countries of a U.S.-styled system, with its greater corporate transparency, would enhance their economic performance. Other commentators, in contrast, insist that the U.S. mandatory disclosure regime represents a mistake, not a model. These crosscurrents …

Apologies And Legal Settlement: An Empirical Examination, Jennifer K. Robbennolt

Michigan Law Review

It is often said that U.S. legal culture discourages apologies. Defendants, defense counsel, and insurers worry that statements of apology will be admissible at trial and will be interpreted by jurors and judges as admissions of responsibility. In recent years, however, several legal commentators have suggested that disputants in civil lawsuits should be encouraged to apologize to opposing parties. They claim that apologies will avert lawsuits and promote settlement. Consistent with this view, legislatures in several states have enacted statutes that are intended to encourage and protect apologies by making them inadmissible. In addition, some commentators argue that defendants might …

Boring Lessons: Defining The Limits Of A Teacher's First Amendment Right To Speak Through The Curriculum, R. Weston Donehower

Michigan Law Review

Margaret Boring's classes were anything but boring. She taught Advanced Acting at Owen High School in rural Buncombe County, North Carolina, and her classes' performances regularly won regional and state awards. In the fall of 1991, Ms. Boring chose a controversial play, Independence by Lee Blessing, for her students to perform. Independence "powerfully depicts the dynamics within a dysfunctional, single-parent family - a divorced mother and three daughters; one a lesbian, another pregnant with an illegitimate child." Prior to the first performance at the school, Ms. Boring informed the principal of the play's title but not its content. After the …

Trust Law, Corporate Law, And Capital Market Efficiency, Robert H. Sitkoff

Law & Economics Working Papers Archive: 2003-2009

In both the publicly-traded corporation and the private donative trust a crucial task is to minimize the agency costs that arise from the separation of risk-bearing and management. But where the law of corporate governance evolved in the shadow of capital-market checks on agency costs, trust governance did not. Thus, even more than that of close corporations, the law and study of private trusts offers an illuminating counterfactual -- a control, as it were -­ for a playful thought experiment about the importance of capital market efficiency to the law and study of public corporations. The animating idea for this …

Vol. 54, No. 7, November 25, 2003, University Of Michigan Law School

Res Gestae

•Professor Points out Problems, Pitfalls of Police Profiling Practices •A Ticket to Ride, Straight to the Big House •Robert Rubin Welcomed at 2003 Dean's Special Lecture •New Student Group Takes Aim at School Policy, Federal Legislation •Treatment of JAG Corps Threatens Academic Freedom, Institutional Identity •Quick, Legal Ways to Earn Extra Holiday Cash •Your Brain on Drugs : How Not to Take Law School Exams •Of Earrings and Other Symbols: An Hour with Professor Sherman Clark •Transnational Law, Base-Jumping and Lederhosen- You Guessed it, Professor Mathias Reimann •Just in Time for Autumn: The Shins Chutes Too Narrow •What's in an …

Vol. 54, No. 6, November 11, 2003, University Of Michigan Law School

Res Gestae

•Flyin' High with J.J. White •Summer Jobs Involving "Something (il)Legal" •Are Animals People Too? SALDF Hosts Talk on Integration of Animals into the Legal System •Students Discuss Summer Jobs in Criminal Law •Analysis: FEC Commissioner Skeptical of Finance Reform •Can We Trust Cops? Visiting Professor Warns to Think Twice •What to Do When the First Wave of Recruiters Passes You By •NLRB Chairman Returns to Law School, Talks Shop •A Big Carrot for 3Ls to Give Back •Immigration Law After 9/11: A Discussion with Prof. Bo Cooper •Date Auction Photos •Students and Professors Mingle Over Wine and Cheese •Unprecedented Pressure …

For And Against Marriage: A Revision, Anita Bernstein

Michigan Law Review

When anthropologist Henry Sumner Maine issued his famous proclamation that modern legal development evolved "from Status to Contract," he used juridical categories to make a statement about progress. Voluntary relations now build the law, Maine declared. The alternative to voluntary relations - identity-based legal labels to decree what people may and may not do - must relocate to the dustbin of history. Only a backwater society would keep them. American legal change in the century-plus since Maine's death in 1888 gives credence to the claim that status inexorably yields to contract. At one level, newer developments refute the Maine thesis. …

Recent Books, Michigan Law Review

Michigan Law Review

Books received by the Law Review.

The False Promise Of One Person, One Vote, Grant M. Hayden

Michigan Law Review

It has now been four decades since the Supreme Court stepped into the political thicket with its groundbreaking series of reapportionment cases. Those cases rather quickly brought about radical changes in the structure of our national, state, and local governments and, in so doing, reshaped the political landscape of the country in many, mostly beneficial, ways. The reapportionment cases also signaled the beginning of a revolution in the way we view the rights associated with meaningful participation in a democratic society, a revolution that continues to this day. We now enjoy a right to vote that is much more comprehensive …

Vol. 54, No. 5, October 28, 2003, University Of Michigan Law School

Res Gestae

•Caught on Tape: Yale Kamisar Talks About End of Teaching Career •ACS and BLSA Host Assault on Gun Violence •Lecture on Academic Freedom Features Professor's Thoughts on Civil Liberties •Students Take Time Our in Dean's Corner •Werewolves as Friends: A Trip to Cedar Point •Identity Theft and Financial Aid: Should You be Worried? •An American in Oxford: What's History Got to do With it Anyway? •She May Have Stolen Your Soul, But my Jacket's Missing •Sports v. Memo, and State's Little Brother Syndrome •Will Work for Food: French Laundry Dreams and Taillevant Fantasies... •There ARE Republicans at the University of …

Vol. 54, No. 4, October 14, 2003, University Of Michigan Law School

Res Gestae

•Downloaders Beware! Record Industry Lawsuits are Indeed 2 Legit 2 Quit •Burning the Midnight Oil with the Insomniac-In-Chief •Letter to the Editor: Taking the MPRE- It's a Mystery to Us •Alcohol Policy Abused: Training Sessions Needs Redirection •ACLU Celebrates Banned Books •The Empire Strokes Back •Fifty Ways to Leave Your Laptop

Main Street Multidisciplinary Practice Firms: Laboratories For The Future, Susan Poser

University of Michigan Journal of Law Reform

This Article examines the debate over multidisciplinary practice in the wake of the collapse of Enron and Arthur Andersen. Part I addresses the history of the scholarly debate about multidisciplinary practice in the United States. It discusses the focus on large multidisciplinary firms, feared threats to independent professional judgment, and the current rule concerning lawyers and multidisciplinary practice.

Part II examines the reasons for allowing multidisciplinary practice. The author argues that client demand, lawyer demand, and policy reasons all provide valid reasons for permitting "one-stop" shopping. Part I also discusses existing forms of multidisciplinary practice. The author argues that the …

Three Steps And You're Out: The Misuse Of The Sequential Evaluation Process In Child Ssi Disability Determinations, Frank S. Bloch

University of Michigan Journal of Law Reform

The federal Supplemental Security Income (SSI) program provides cash benefits to financially needy persons who are 65 years of age or older, blind, or disabled. It also provides cash benefits to children with disabilities under the age of 18. This Article examines three sets of regulatory efforts to implement special disability standards for children, based first on the original SSI legislation, then on a seminal Supreme Court decision, and finally on amendments to the Social Security Act overruling the Court's decision, and shows how the "sequential evaluation process," which has been useful for adjudicating adult disability claims, has been a …

Executing The Laws Or Executing An Agenda: Usurpation Of Statutory And Constitutional Rights By The Department Of Justice, Christopher C. Sabis

University of Michigan Journal of Law Reform

The Department ofJustice (DOJ) can compel individuals and entities to sacrifice their constitutional or statutory rights. The DOJ can do so through brute political force, settlements and consent decrees, selective statutory enforcement, and prosecutions that coerce future actors not to pursue goals contrary to the policy desires of the executive branch. The current regime provides few constraints on the DOJ's ability to abuse its legal authority to achieve political objectives. This unbridled power jeopardizes the rights of both opposing and third parties.

This Note examines, in a bipartisan manner, the methods the Justice Department employs that deprive opponents or third …

Eldred's Aftermath: Tradition, The Copyright Clause, And The Constitutionalization Of Fair Use, Stephen M. Mcjohn

Michigan Telecommunications & Technology Law Review

Eldred v. Ashcroft offered the Supreme Court broad issues about the scope of Congress's constitutional power to legislate in the area of intellectual property. In 1998, Congress added twenty years to the term of all copyrights, both existing and future copyrights. But for this term extension, works created during the 1920s and 1930s would be entering the public domain. Now such works will remain under copyright until 2018 and beyond. Eldred v. Ashcroft rejected two challenges to the constitutionality of the copyright extension. The first challenge contended that Congress had exceeded its power to grant copyrights for "limited Times" in …

Verdugo In Cyberspace: Boundaries Of Fourth Amendment Rights For Foreign Nationals In Cybercrime Cases, Stewart M. Young

Michigan Telecommunications & Technology Law Review

This Comment examines the current legal framework governing Fourth Amendment rights for foreign nationals accused of committing crimes within the United States. Over the past three years, federal courts have tried several cases charging foreign nationals with committing crimes through the use of the Internet; these cases demonstrate a lack of clarity in the standard for warrant requirements regarding these searches. Utilizing these cases, this Comment creates a hypothetical case that presents the issues of Fourth Amendment rights for foreign nationals and seeks to determine how such a question should be answered. It advocates the clear application of United States …

The Need For Revisions To The Law Of Wiretapping And Interception Of Email, Robert A. Pikowsky

Michigan Telecommunications & Technology Law Review

I argue that a person's privacy interest in his email is the same as his privacy interest in a telephone conversation. Moreover, the privacy interest in email remains unchanged regardless of whether it is intercepted in transmission or covertly accessed from the recipient's mailbox. If one accepts this assumption, it follows that the level of protection against surveillance by law enforcement officers should be the same[...] As technology continues to blur the distinction between wire and electronic communication, it becomes apparent that a new methodology must be developed in order to provide logical and consistent protection to private communications. The …

Life Sciences, Technology, And The Law - Symosium Transcript - March 7, 2003, Philip R. Reilly, David H. Kaye, Jonathan J. Koehler, Richard O. Lempert

Michigan Telecommunications & Technology Law Review

Life sciences, Technology, and the Law Symposium held at the University of Michigan Law School Friday, March 7, 2003

Recent Books, Michigan Law Review

Michigan Law Review

Books received by the Law Review.

Reflections On Augusta: Judicial, Legislative And Economic Approaches To Private Race And Gender Consciousness, Scott R. Rosner

University of Michigan Journal of Law Reform

In light of the recent controversy surrounding Augusta National Golf Club's exclusionary membership policy, this Article highlights the myriad incentives and disincentives that Augusta and similar clubs have for reforming such policies. The author acknowledges the economic importance of club membership in many business communities and addresses the extent to which club members' claims of rights of privacy and free association are valid. The Article also considers the potential of judicial action in promoting the adoption of more inclusive membership policy; the state action doctrine and the First Amendment right to freedom of association are discussed as frameworks under which …

Of Property And Antiproperty, Abraham Bell, Gideon Parchomovsky

Michigan Law Review

Private property is widely perceived as a potent prodevelopment and anticonservationist force. The drive to accumulate wealth through private property rights is thought to encourage environmentally destructive development; legal protection of such property rights is believed to thwart environmentally friendly public measures. Indeed, property rights advocates and environmentalists are generally described as irreconcilable foes. This presumed clash often leads environmentalists to urge public acquisition of private lands. Interestingly, less attention is paid to the possibility that the government may prove no better a conservator than private owners. Government actors often mismanage conservation properties, collaborating with private developers to dispose of …

The Logic Of Reciprocity: Trust, Collective Action, And Law, Dan M. Kahan

Michigan Law Review

The Logic of Collective Action has for decades supplied the logic of public-policy analysis. In this pioneering application of public choice theory, Mancur Olson elegantly punctured the premise - shared by a variety of political theories - that individuals can be expected to act consistently with the interest of the groups to which they belong. Absent externally imposed incentives, wealth-maximizing individuals, he argued, will rarely find it in their interest to contribute to goods that benefit the group as a whole, but rather will "free ride" on the contributions that other group members make. As a result, too few individuals …

The Indulgence Of Reasonable Presumptions: Federal Court Contractual Civil Jury Trial Waivers, Joel Andersen

Michigan Law Review

Large institutions such as banks, franchisers, international companies, and lessors distrust juries' ability to properly resolve disputes and award reasonable damages. As a result, these and other actors have attempted to limit juries' potential influence on the contracts to which they are parties. They have done so through contractual jury trial waiver clauses in these agreements. The Seventh Amendment to the Constitution guarantees the jury trial right. Whether the right is determined to exist in an individual instance is a matter of federal common law, which merely preserves the jury trial right as it existed when the Amendment was adopted …

Vol. 54, No. 3, September 30, 2003, University Of Michigan Law School

Res Gestae

•Booze Boos: Students Weigh In on the New Alcohol Policy •Getting in Touch With My Inner Gear-Head •U.S. Ambassador to China Delivers Bishop Lecture on International Law •Supreme Court Wrap-Up: Not Much Wrap, but Pizza was Most Excellent! •Dean Caminker Holds Forum on the Virtues of Public Service •So You Want to Win the Campbell Moot Court Competition •Guided by Voices- Earthquake Glue •What I Learned in My First Month: Duck! •On the Fly, On the Cheap, and Healthy? •Singing the Mantra of the Underdog •1Ls Lend Support to Detroit Nine •Annual Canoe Trip Photos •LSSS Funding Allocations for 2003-2004 …

Measuring Recovery For Non-Contractual Investment, Omri Ben-Shahar, Robert A. Mikos

Law & Economics Working Papers Archive: 2003-2009

Parties who make investments that generate externalities may sometimes recover from the beneficiaries, even in the absence of contract. Previous scholarship has shown that granting recovery, based on either the cost of the investment or the benefit it confers, can provide optimal incentives to invest. However, this article demonstrates that the law often awards recovery that is neither purely cost-based, nor purely benefit-based, and instead equals either the greater-of or lesser-of the two measures. These hybrid approaches to recovery distort incentives to invest. The article demonstrates the prevalence of these practices, and explores informational and related reasons why they emerge. …