Digital Commons Network^™

The Mechanisms Of Market Efficiency Twenty Years Later: The Hindsight Bias, Ronald J. Gilson, Reinier Kraakman

Faculty Scholarship

Twenty years ago we published a paper, "The Mechanisms of Market Efficiency," that sought to describe the institutional underpinnings of price formation in the securities market. Since that time, financial economics has moved forward on many fronts. The sub-discipline of behavioral finance has struggled to bring yet more descriptive realism to the study of financial markets. Two important questions are (1) how much has this new discipline changed our understanding of the efficiency and nature of the institutional mechanisms that set price in financial markets; and (2) how far does this discipline carry novel implications for the regulation of financial …

Managing A Correctional Marketplace: Prison Privatization In The United States And The United Kingdom, David Pozen

Faculty Scholarship

This article traces the recent history and development of privately operated prisons in the United States and the United Kingdom, and it compares their current role in the countries' correctional systems. The privatization movements of the U.S. and the U.K. were driven by similar factors, but the relative weight of these factors varied between the two. In the U.S., legal pressures to alleviate prison overcrowding and fiscal incentives to contract out prison construction were stronger, while in the U.K. the ideological and political aims of the governing party exerted more influence in stimulating privatization. America's experience with private prisons in …

Theorizing Community Justice Through Community Courts, Jeffery Fagan, Victoria Malkin

Faculty Scholarship

Community justice practitioners argue that the justice system has long ignored its biggest clients-citizens and neighborhoods that suffer the everyday consequences of high crime levels. One response from legal elites has been a package of court innovations and new practices known as "community justice," part of a broader appeal to "community" and "partnership" common now in modern discourse on crime control. This concept incorporates several contemporary visions and expressions of justice within the popular and legal literatures: problem-solving courts (such as drug courts, mental health courts, domestic violence courts, gun courts, and, of course, juvenile courts); the inclusion of victims …

Contract Theory And The Limits Of Contract Law, Alan Schwartz, Robert E. Scott

Faculty Scholarship

Contract law has neither a complete descriptive theory, explaining what the law is, nor a complete normative theory, explaining what the law should be. These gaps are unsurprising given the traditional definition of contract as embracing all promises that the law will enforce. Even a theory of contract law that focuses only on the enforcement of bargains must still consider the entire continuum from standard form contracts between firms and consumers to commercial contracts among businesses. No descriptive theory has yet explained a law of contract that comprehends such a broad domain. Normative theories that are grounded in a single …

Equality And The Forms Of Justice, Susan Sturm

Faculty Scholarship

Justice and equality are simultaneously noble and messy aspirations for law. They inspire and demand collective striving toward principle, through the unflinching comparison of the "is" and the "ought." Yet, law operates in the world of the practical, tethered to the realities of dispute processing and implementation. The work of many great legal scholars and activists occupies this unstable space between principle and practice. Owen Fiss is one such scholar, attempting to straddle the world of the here-and-now and the imagined and then deliberately constructed future, the contours of which have been established during the founding moments of our constitutional …

What Did They Do And What Does It Mean? The Three-Judge Court's Decision In Mcconnell V. Fec And The Implications For The Supreme Court, Richard Briffault

Faculty Scholarship

My role at this symposium is to provide a brief overview of the three-judge court's decision in McConnell v. FEC, review the opinions, piece together what the court actually decided, and see how the Bipartisan Campaign Reform Act of 2002 ("BCRA") now stands. I will try to do that briefly, while giving a few general comments about what the court's opinions tell us about the state of campaign finance law today. As a preliminary matter, the three-judge court's opinions provide us with two radically different world views – almost two different intellectual universes – for thinking about campaign finance …

Whom (Or What) Does The Organization's Lawyer Represent?: An Anatomy Of Intraclient Conflict, William H. Simon

Faculty Scholarship

Professional responsibility issues involving organizational clients are distinctively difficult because organizations consist of constituents with conflicting interests. Legal doctrine has only recently begun to address the effect of internal conflict on a lawyer's responsibilities to an organizational client. Under current doctrine, the lawyer's responsibilities differ strongly depending on whether the representation is characterized as 'joint" representation of the organization 's constituents or "entity" representation. This Article argues that the choice between the two characterizations often has been arbitrary and that the underlying differences between them have been misunderstood. With respect to entity representation, it criticizes a prominent tendency in the …

Who Needs The Bar?: Professionalism Without Monopoly, William H. Simon

Faculty Scholarship

Professionalism has an idealistic dimension and an institutional one. The idealistic dimension is the notion of voluntary commitment to both client interests and public values. The institutional dimension is the ideal of self-regulation by the bar.

The idealistic dimension remains powerful. However disappointed we are by the distance between the profession's ideals and its members' practices, these ideals continue to inspire valuable efforts. Various professional organizations are making admirable contributions through pro bono representation of disadvantaged people, public education, and disinterested law reform efforts in a range of areas, such as litigation procedure, prisons, and judicial selection. Moreover, the bar's …

Controlling Controlling Shareholders, Ronald J. Gilson, Jeffrey N. Gordon

Faculty Scholarship

The rules governing controlling shareholders sit at the intersection of the two facets of the agency problem at the core of public corporations law. The first is the familiar principal-agency problem that arises from the separation of ownership and control. With only this facet in mind, a large shareholder may better police management than the standard panoply of market-oriented techniques. The second is the agency problem that arises between controlling and non-controlling shareholders, which produces the potential for private benefits of control. There is, however, a point of tangency between these facets. Because there are costs associated with holding a …

Consensual Sex And The Limits Of Harassment Law, Carol Sanger

Faculty Scholarship

This chapter discusses an enormous achievement of the campaign against the harassment of working women, which is the establishment of a set of facts about sex at work that had previously been denied, mocked, and misunderstood. It is now understood that sex can be unwelcome, that unwelcome overtures are neither harmless nor fun, and that consent to sex demanded on the job does not shift the behavior from the category of unwanted sex to the category of the welcome. On the other hand, one of the most ferocious complaints against the establishment of sexual harassment as a legal wrong is …

Publishing Privacy: Intellectual Property, Self-Expression, And The Victorian Novel, Jessica Bulman-Pozen

Faculty Scholarship

The relationship between privacy and intellectual property has resurfaced with a twist at the turn of the twenty-first century. If Victorian authors regarded intellectual property as private, contemporary proposals instead urge us to regard private information as property. In response to technological developments that have facilitated unprecedented invasions of individuals’ privacy, some scholars have advocated legally classifying private information as a form of property. These scholars insist that the best way to respond to privacy violations, particularly corporate commodification of personal data, is to invest people with property rights that would furnish control over their personal information. Insofar as intellectual …

Achieving Balance In International Copyright Law, Jane C. Ginsburg

Faculty Scholarship

In 1996, the World Intellectual Property Organization (WIPO) adopted two related treaties, the WIPO Copyright Treaty, and the WIPO Performances and Phonograms Treaty (the WIPO Treaties). Though now often referred to as the "WIPO Internet Treaties," the agreements emerged after five years of preparation, only the last two of which focused on a "digital agenda." These treaties, following on the 1994 World Trade Organization TRIPs Accord, have substantially expanded, and somewhat harmonized, the role of international copyright and neighboring rights norms in the international exchange of works of authorship and related productions. When enactment of the WIPO Treaties with their …

The Cyberian Captivity Of Copyright: Territoriality And Authors' Rights In A Networked World, Jane C. Ginsburg

Faculty Scholarship

In this essay, the point of view I wish to take is that of authors who create or disseminate works over digital networks. I believe that their situation reflects both perspectives. Like the Avignon popes and the fifth century Roman emperors, authors might be considered displaced persons, because others might cast their works into the digital Empyrean, disconnected from physical points of attachment to any particular jurisdiction. But, like the Germanic tribes that crossed the Rhine River late in December 406, at least some authors might also be considered the displacers, because they choose to exploit the newly-found technological irrelevance …

Employee Stock Ownership After Enron: Proceedings Of The 2003 Annual Meeting, Association Of American Law Schools Section On Employee Benefits, Norman P. Stein, Colleen E. Medill, Susan J. Stabile, Jeffrey N. Gordon, Louis H. Diamond, Damon Silvers, Patricia E. Dilley

Faculty Scholarship

This session is entitled "Employee Stock Ownership After Enron," and I assume that title has drawn into this room people who know something about either Enron or employee stock, or both. For our purposes, the Enron story has as its focus the Enron 401(k) plan, which was the principal retirement plan for most Enron employees. Employees could make elective contributions to the 401(k) plan, which offered nineteen investment options, one of which was Enron stock. The 401(k) plan also provided that Enron would match employee contributions up to 3 percent of compensation. Enron's match, however, was made in Enron stock. …

Governance Failures Of The Enron Board And The New Information Order Of Sarbanes-Oxley, Jeffrey N. Gordon

Faculty Scholarship

Analysis of the corporate governance crisis that manifested itself in the United States at the turn of the millennium requires separating its various strands. The Enron Corporation ("Enron") debacle and the dot corn bubble and collapse, for example, share some common elements but in other ways they are quite different. In both cases investors became aggressively enamored of an unsustainable business model. In the dot com case it was the belief that an innovator in a rapidly growing market could attain powerful first mover advantages that would produce an eventual cascade of profits, so that a current and increasing stream …

The Efficiency Of Controlling Corporate Self-Dealing: Theory Meets Reality, Zohar Goshen

Faculty Scholarship

Corporate self-dealing may be controlled either by legal rules or by the unconstrained forces of the market. The regulatory options include an absolute prohibition on self-dealing, a prohibition on voting with conflicting interests (the "majority of the minority" requirement), and an imposition of fairness duties (the 'fairness test"). Using an economic analysis, this Article presents a unique theoretical framework for evaluating the relative efficiency of the attempts to control self-dealing adopted by five countries: The United States (Delaware in particular), the United Kingdom, Canada, Germany, and Italy.

The Article's analysis of the self-dealing problem is based on the novel theory …

Agora: Future Implications Of The Iraq Conflict: Editors' Introduction, Lori Fisler Damrosch, Bernard H. Oxman

Faculty Scholarship

The military action against Iraq in spring 2003 is one of the few events of the UN Charter period holding the potential for fundamental transformation, or possibly even destruction, of the system of law governing the use of force that had evolved during the twentieth century. As with the great debates surrounding U.S. involvement in the two world wars, the establishment of the United Nations, and the challenges to UN Charter norms during the Cold War, this Journal seeks to provide a forum for reasoned and respectful treatment of legal issues that have aroused fierce passions.

Network Effects And Legal Citation: How Antitrust Theory Predicts Who Will Build A Better Bluebook Mousetrap In The Age Of Electronic Mice, A. Christine Hurt

Faculty Scholarship

No abstract provided.

Computer Attacks On Critical National Infrastructure: A Use Of Force Invoking The Right Of Self-Defense, Eric Talbot Jensen

Faculty Scholarship

Computer networks create tremendously increased capabilities but also represent equally increased vulnerabilities. These vulnerabilites are especially acute in relation to potential attacks on critical national infrasturucture. This Article proposes that international law must evolve to recognize that attacks against a nation's critical national infrastructure from any source constitute a use of force. Such attacks, therefore, give the victim state the right to proportional self-defense - including anticipatory self-defense - even if the computer network attack is not an armed attack under Article 51 of the United Nations Charter. Due to the instantaneous nature of computer network attacks, the right to …

The First "Establishment" Clause: Article Vii And The Post-Constitutional Confederation, Gary S. Lawson, Guy I. Seidman

Faculty Scholarship

It is a great pleasure for academics to realize that fellow scholars sometimes read their work and take it seriously. We are genuinely flattered that Vasan Kesavan has chosen to comment on our article, When Did the Constitution Become Law?,1 and has done so with the intellectual rigor and generosity of spirit that characterizes his prodigious scholarship. 2 We are grateful to Mr. Kesavan for engaging us and grateful to the Notre Dame Law Review for accommodating the dialogue.

Apparent Tricritical Behavior At A Nearly Second-Order Nematic-Isotropic Phase Transition Of A Cyclic Liquid Crystalline Trimer, Ishtiaque M. Syed, Virgil Percec, Rolfe G. Petschek, Charles Rosenblatt

Faculty Scholarship

An investigation on the cyclic liquid crystalline trimer TPB-(c)9(3) was performed. The optical retardation and Fréedericksz techniques within a few tens of millikelvins of the superheating limit of the nearly second-order nematic isotropic phase transition were used for the investigation purpose. It was found that both the Fréedericksz bend threshold voltage and optical retardation were in good agreement with tricritical behaviour for the transition.

Campaign Finance Disclosure And Section 527 Of The Code: A Look At The District Court's Opinion In National Federation Of Republican Assemblies, Donald B. Tobin

Faculty Scholarship

This report examines the decision of the U.S. District Court for the Southern District of Alabama in National Federation of Republican Assemblies v. United States, which dealt with section 527 political organizations.

Market Failure And Intellectual Property: A Response To Professor Lunney, Wendy J. Gordon

Faculty Scholarship

Professor Lunney's piece in this volume is interesting enough that I forgive him for misportraying my own work. In this short reply I will clarify my position, and then examine both the place of my market failure argument and the place of some of Professor Lunney's arguments within the future of Intellectual Property scholarship as a whole.

A Copernican View Of Health Care Antitrust, William M. Sage, Peter J. Hammer

Faculty Scholarship

Sage and Hammer use the analogy of Copernican astronomy to suggest that understanding the dramatic change wrought by managed care requires a conceptual reorientation regarding the meaning of competition in health care and its appropriate legal and regulatory oversight. Both share the belief that misperceiving the world limits potential for technical and social progress.

Twenty Years Later, Robert J. Desiderio

Faculty Scholarship

No abstract provided.

The First International Competition For Online Dispute Resolution: Is This Big, Different And New?, Benjamin G. Davis, Franklin G. Snyder, Kay Elkins Elliott, Peter B. Manzo, Alan Gaitenby, David Allen Larson

Faculty Scholarship

In February of 2002, the International Competition for Online Dispute Resolution (ICODR) was held to address the issue of new uses of technology is dispute resolution. This article describes the competition with individual presentations from the perspectives of a problem drafter, a coach, a participant, the evaluators, and an organizer. In the conclusion, the author presents some observations on why this International Competition for Online Dispute Resolution is big, different, and new.

Administrative-Law-Like Obligations On Private[Ized] Entities, Jack M. Beermann

Faculty Scholarship

Privatization is often promoted as a cure for many of the problems of government. In this Article, Professor Beermann argues that the effect of privatization is likely to be muted by the fact that several related phenomena have, in recent years, reduced the differences between government and the private sector, especially when privatization is involved. First, private entities are often compelled to make public or provide to government a great deal of information about themselves, much as the Freedom of Information Act and related statutes require transparency in government. Second, discovery in litigation subjects a great deal of private information …

Why Lawyers Should Care, John C. Dernbach

Faculty Scholarship

No abstract provided.

Searching For A Sense Of Control: The Challenge Presented By Community Conflicts Over Concentrated Animal Feeding Operations, Nancy A. Welsh, Barbara Gray

Faculty Scholarship

The growth in the number of concentrated animal feeding operations ("CAFOs"), particularly those involved in swine production, has brought with it increased community concern and outright conflict in many communities across the United States.' Most commentators have focused upon anticipated outcomes to explain the contentiousness of CAFO-related disputes.2 Meanwhile, even though the social dynamics that contribute to the development and escalation of conflicts over CAFOs parallel those exhibited in other kinds of community conflicts, little research has systematically examined the social dynamics associated with CAFO conflicts. One exception to this deficiency is recent work conducted by a team of researchers …

Beyond Observable Prejudice-Moving From Recognition Of Differences To Feasible Solutions: A Critique Of Ian Ayres' Pervasive Prejudice?, Mary Margaret Penrose

Faculty Scholarship

As a female professor working within the academic ranks of a law school, I did not have to read Ian Ayres' work, Pervasive Prejudice? Unconventional Evidence of Race and Gender Discrimination, to know that the odds remain quite high that blacks and women will be subjected to greater instances of discrimination in the marketplace, in medical facilities, and in judicial proceedings than their white male counterparts. Although I would not suggest that such conclusion is axiomatic, it certainly is observable on an experiential level by those falling within the two categories (race and gender) discussed in Professor Ayres' book. …