Digital Commons Network^™

Fallacies Of American Constitutionalism, Christian G. Fritz

Faculty Scholarship

Fallacies of American Constitutionalism' examines the pervasive assumptions in the scholarship of historians, lawyers, and political scientists that impute the central role of the federal Constitution to how Americans understood written constitutions after their Revolution. American struggles to come to grips with the meaning of the sovereignty of the people before and after 1787 reveals very different views about the people as the sovereign from those reflected in the federal Constitution and dispel the notion that our prevailing constitutional view is an unbroken chain stretching back to 1787.

Taking Pop-Ups Seriously: The Jurisprudence Of The Infield Fly Rule, Neil B. Cohen, S. W. Waller

Faculty Scholarship

No abstract provided.

Law, Economics, And The Theory Of The Firm, Michael J. Meurer

Faculty Scholarship

Economic analysis of the law assumes the "shadow of the law" influences the behavior of businesses. Thus, business people consider the costs and benefits of contract litigation when they make decisions about contract performance, they consider the costs of tort litigation when they make investments in safety, they consider the costs of violating a regulation when they make decisions about regulatory compliance, and so on. Economic models of law typically abstract from organizational detail and treat businesses as if they are represented by a single manager who controls the firm's behavior and acts to maximize its profit. This abstraction simplifies …

Too Many Markets Or Too Few? Copyright Policy Toward Shared Works, Michael J. Meurer

Faculty Scholarship

Proper analysis of sharing requires attention to the ways copyright law shapes markets. It also requires an analytic framework that identifies the gains and losses to copyright owners and users operating under the different market forms that can be sustained by different versions of copyright law. My framework will help judges avoid two mistakes that a market failure orientation invites. First, some judges overemphasize transaction costs and fail to appreciate the reasons to apply fair use to sharing even when negotiation and payment costs are zero. One reason is well known: sharing that generates positive externalities may be treated as …

History In Journalism And Journalism In History: Anthony Lewis And The Watergate Crisis, Pnina Lahav

Faculty Scholarship

Let me plunge right into a Lewis column to convey his marvelous craft in weaving the past into a contemporary moment. This one is from July 8, 1974. The column is about the oral argument before the Supreme Court in the Executive Privilege case, which was about to enter the constitutional canon as United States v. Nixon. Lewis writes as both eyewitness and commentator. He begins with constitutional history invoking Marbury v. Madison:

"It seemed at times like a constitutional casebook come to life. Marbury v. Madison was not only cited but, for a moment, debated. What exactly …

Agreeing To Disagree: Security Council Resolution 1441 And Intentional Ambiguity, Michael Byers

Faculty Scholarship

No abstract provided.

Mining In Irian Jaya: How Citizens Should Think About Environmental Justice, Jeremy Bendik-Keymer

Faculty Scholarship

"All around me are the facts of my life. But I can't see them, because the way I think gets in the way." I am making a case for environmental justice. We'll explore how questioning our lives and actions helps us grasp environmental justice. I believe environmental justice calls many of us to conceive of our lives in new ways so that we can become true ecological citizens. First, relations between humans and lands need to be articulated, and we need to think of our lives in spatially, temporally and ecologically extended ways. This paper is intended initially as an …

Market Symmetry And The Tax Efficiency Of Equity Compensation, David I. Walker

Faculty Scholarship

At first blush, the deferral of employee income recognition associated with equity compensation appears to provide a tax advantage in a rising market but an offsetting disadvantage in a declining market. Merton Miller and Myron Scholes argued, however, that this apparent symmetry is misleading and that employees can hedge to ensure tax efficiency despite market uncertainty. This article demonstrates that the effect of employee hedging is fairly small, but that a combination of factors, including capital loss limitations, the possibility of employee-favorable ex post adjustments to equity compensation arrangements, and employee hedging, do cause compensatory stock grants and nonqualified options …

The U.S. Consumption Tax: Evolution, Not Revolution, Daniel S. Goldberg

Faculty Scholarship

The article expresses the view that the current Internal Revenue Code has evolved into a hybrid income tax and consumption tax. It begins by explaining the difference between an income tax and a consumption tax and provides the backgrounds of the alternative forms of consumption tax: (1) consumed income, (2) yield exemption, and (3) point-of-sale taxation. Under the consumed income tax model of consumption tax, the individual taxpayer includes all items of income, both from labor and from capital, in its tax base, and then subtracts or deducts the portion of that income that he saves or invests. The resulting …

Not For Attribution: Government's Interest In Protecting The Integrity Of Its Own Expression, Helen L. Norton

Faculty Scholarship

Public entities increasingly maintain that the First Amendment permits them to ensure that private speakers’ views are not mistakenly attributed to the government. Consider, for example, Virginia’s efforts to ban the Sons of Confederate Veterans’ display of the Confederate flag logo on state-sponsored specialty license plates. Seeking to remain neutral in the ongoing debate over whether the Confederate flag is a symbol of “hate” or “heritage,” Virginia argued that the state would be wrongly perceived as endorsing the flag if the logo appeared on a state-issued plate adorned by the identifier “VIRGINIA.” The Fourth Circuit was unpersuaded, holding that the …

Book Review: Differential Treatment In International Environmental Law, Maxwell O. Chibundu

Faculty Scholarship

A review of Differential Treatment in International Environmental Law by Phillippe Cullet. Brookfield, Ashgate Publishing Co., 2003.

Between Mandate And Market: Contract Transition In The Shadow Of The International Order, Robert B. Ahdieh

Faculty Scholarship

Boilerplate in sovereign debt contracts issued in the United States has long dictated the unanimous consent of bondholders to any debt restructuring. This requirement persisted for decades, notwithstanding wide consensus that such unanimous action provisions increased transaction costs, produced inefficient delays in debt restructuring, enhanced the moral hazards of the sovereign debt market, and otherwise encouraged collective action failures. Yet the sovereign debt markets has recently made an about-face, replacing the unanimity requirement for debt restructuring with a less demanding provision for collective, or majority, action by creditors. Completed over the course of just a few months in 2003, this …

The Jekyll And Hyde Story Of International Trade: The Supreme Court In Phrma V. Walsh And The Trips Agreement, Srividhya Ragavan

Faculty Scholarship

The paper analyses the international impact of the approval by the United States Supreme Court to use indirect price control mechanisms to tackle public health and Medicaid issues. It traces similarities in policies implemented by the United States and those it opposed within developing nations. For example, the recent use by the developed nations of compulsory licensing and price control mechanisms, which they opposed as violating TRIPS when used by developing nations, underlines a poverty penalty suffered by developing nation signatories of TRIPS. In effect, TRIPS exempts developed nations from fulfilling obligations developing nations were forced to fulfill and thus …

Why Don’T Doctors & Lawyers (Strangers In The Night) Get Their Act Together?, Frances H. Miller

Faculty Scholarship

Health care in America is an expensive, complicated, inefficient, tangled mess – everybody says so. Patients decry its complexity, health care executives bemoan its lack of coherence, physicians plead for universal coverage to simplify their lives so they can just get on with taking care of patients, and everyone complains about health care costs. The best health care in the world is theoretically available here, but we deliver and pay for it in some of the world’s worst ways. Occam’s razor (“Among competing hypotheses, favor the simplest one”) is of little help here. There are no simple hypotheses – everything …

Windfall Awards Under Pslra, Richard A. Booth Marbury Research Professor Of Law

Faculty Scholarship

In this article, I address a serious problem with the approach to damages embodied in the Private Securities Litigation Reform Act (PSLRA) that artificially increases awards in securities fraud actions in down markets. Congress enacted PSLRA to limit frivolous lawsuits under the federal securities laws. Among the many changes wrought by PSLRA was the imposition of a limit on damages in private securities fraud actions under the Exchange Act. Specifically, PSLRA limits damages in a case of bad news fraud to the difference between the purchase price and the average market price during the ninety-day period following corrective disclosure. As …

Medical Malpractice And Contract Disclosure: An Equilibrium Model Of The Effects Of Legal Rules On Behavior In Health Care Markets, Kathryn Zeiler

Faculty Scholarship

This paper develops a theoretical model of how specific legal rules affect the types of contracts managed care organizations ("MCOs") use to compensate physicians. In addition, the analysis provides insights into how physician treatment decisions and the rate of medical malpractice lawsuits react to different legal rules. In particular, the model predicts that outcomes in jurisdictions forcing MCOs to disclose physician contract terms to patients differ from those that do not. Contracts vary depending on the disclosure rule and how treatment costs relate to expected damages and litigation costs. Moreover, the model predicts that jurisdictions forcing contract disclosure observe higher …

The Application Of Finance Theory To Increased Risk Harms In Toxic Tort Litigation, Robert J. Rhee

Faculty Scholarship

In toxic tort litigation, a plaintiff has no cause of action for increased risk of harm unless that risk is proven by a preponderance of the evidence to lead to a future physical injury. This rule of law is based on an antiquated concept of uncertainty, and evinces the law’s detachment from the knowledge gained from other intellectual disciplines and the everyday workings of the world. This article argues that freedom from increased risk should be a legally cognizable interest, the violation of which gives rise to an independent cause of action. When analyzed under finance theory, increased risk harms …

The Death Of Secured Lending, Edward J. Janger

Faculty Scholarship

No abstract provided.

The Reliance Interest In Insolvency Law: A Response To Harris And Mooney, Edward J. Janger

Faculty Scholarship

No abstract provided.

Reassessing The Scope Of Conduct Prohibited By Section 10(B) And The Elements Of Rule 10b-5: Reflections On Securities Fraud And Secondary Actors, Andrew S. Gold

Faculty Scholarship

No abstract provided.

A Constitution For Judicial Lawmaking, Adam N. Steinman

Faculty Scholarship

When courts decide cases, the decisions make law because they become precedent that binds future courts under the doctrine of stare decisis. This article argues that some principles governing judicial lawmaking are functionally constitutional principles because they go to the validity of a particular attempt at judicial lawmaking (just as the constitutional principles governing legislative lawmaking determine the validity of lawmaking by legislatures). Because even poorly reasoned judicial decisions can still be effective lawmaking acts, it is important to distinguish between constitutional and non-constitutional principles and arguments. While a non-constitutional principle can be a basis for examining the wisdom or …

Negotiation As One Among Many Tools, Jennifer Gerarda Brown, Marcia Caton Campbell, Jayne Seminare Docherty, Nancy A. Welsh

Faculty Scholarship

Article Extract

Even as this symposium examines the "canon" of negotiation, we think it is also important to consider negotiation's context. In many cases, negotiation cannot be the first or the only activity that takes place. To make significant progress in the resolution or management of some conflicts, other activities will have to precede or supplement negotiation. This can be particularly true in large-scale, multi-party public disputes.

Consider the following situation, one that might be unfolding even as you read this in any number of places in the United States. The setting is the state of Grace, a relatively small …

The Law Of Bargaining, Russell Korobkin, Michael Moffitt, Nancy A. Welsh

Faculty Scholarship

This brief essay, written for a symposium on The Emerging Interdisciplinary Cannon of Negotiation, describes three categories of rules which comprise the law of bargaining. First, common law limitations govern virtually all negotiators: the doctrines of fraud and misrepresentation limit the extent to which negotiators may deceive, and the doctrine of duress limits the extent to which bargainers can use superior bargaining power to coerce agreement. Second, context-specific laws sometimes circumscribe negotiating behavior in specific settings when general rules are less restrictive. Third, the conduct of certain negotiators is constrained by professional or organizational regulations inapplicable to the general public. …

Perceptions Of Fairness In Negotiation, Nancy A. Welsh

Faculty Scholarship

In all of negotiation, there is no bigger trap than "fairness." This chapter from the Negotiator's Fieldbook explains why among multiple models of fairness, people tend to believe that the one that applies here is the one that happens to favor them. This often creates a bitter element in negotiation, as each party proceeds from the unexamined assumption that its standpoint is the truly fair one. For a negotiation to end well, it is imperative for both parties to assess the fairness of their own proposals from multiple points of view, not just their instinctive one – and to consider …

Legal Malpractice Insurance: Surviving The Perfect Storm, Susan Saab Fortney

Faculty Scholarship

This article serves as a practical guide to legal malpractice insurance. Part I introduces the topic of legal malpractice insurance with a brief overview of the changes that occurred in market conditions in 2000 and the subsequent effect on insurance premiums and coverage. Part II outlines the different types of insurance coverage that are available to legal professionals by describing common policy terms, exclusions, and conditions that affect coverage. Part III describes changes in law firms that may affect coverage. Part IV provides legal professionals with useful advice to consider when choosing an insurance policy. Part V reveals important factors …

The Securities And Exchange Commission Goes Abroad To Regulate Corporate Governance, Roberta S. Karmel

Faculty Scholarship

No abstract provided.

The Death Of Secured Lending, Edward J. Janger

Faculty Scholarship

No abstract provided.

The Securities And Exchange Commission Goes Abroad To Regulate Corporate Governance, Roberta S. Karmel

Faculty Scholarship

No abstract provided.

Lawrence's Republic, James E. Fleming

Faculty Scholarship

I am delighted and honored to participate in this symposium critiquing and celebrating the remarkable scholarship of Frank Michelman. I was a student of Frank-but of course we all are students of Frank. I also have had the good fortune to be a colleague of Frank-he has been a distinguished visiting professor at Fordham and has generously participated in a number of our conferences there. The only problem I had in preparing for the symposium is that Frank's scholarship is so rich and wide-ranging that it was difficult to decide what to write about. I initially planned to write a …

Who's The Boss? Controlling Auditor Incentives Through Random Selection, David B. Kahn, Gary S. Lawson

Faculty Scholarship

It took the promise of knowledge to get Eve to yield to temptation. For people outside the Garden of Eden, money often does the job nicely. The U.S. capital markets are the locus of an enormous amount of money-and therefore of an enormous temptation for people who provide financial information to those markets to skew the reporting process to promote their own interests. The risk and potential consequences of skewed financial reporting are matters of grave concern.