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Sox And Whistleblowing, Terry Morehead Dworkin
Sox And Whistleblowing, Terry Morehead Dworkin
Michigan Law Review
The language of the Sarbanes-Oxley Act ("SOX") leaves no doubt that Congress intended whistleblowing to be an integral part of its enforcement mechanisms. The Act attempts to encourage and protect whistleblowers in a variety of ways, including providing for anonymous whistleblowing, establishing criminal penalties for retaliation against whistleblowers, and clearly defining whistleblowing channels. Unfortunately, these provisions give the illusion of protection for whistleblowers without effectively providing it. There is increasing evidence that virtually no whistleblower who has suffered retaliation and pursued remedies under SOX has been successful. Additionally, social science research and studies of whistleblowing laws indicate that SOX is …
The Social Construction Of Sarbanes-Oxley, Donald C. Langevoort
The Social Construction Of Sarbanes-Oxley, Donald C. Langevoort
Michigan Law Review
Part I will take a close look at the legitimacy of SOX by examining the two plausible stories of SOX's origins and considering the early post-SOX evidence on its costs and benefits. There is no clear-cut answer to the question of how much SOX benefits investors; both positive and critical positions are plausible. Costs have been far greater than expected, but more from SOX's implementation than from the legislative text. Before turning to how and why implementation has occurred that way-which to me is the central question of interpretation-Part II considers whether there is an alternative interpretation of SOX that …
Now, Later, Or Never: Applying Asymmetric Discount Rates In Nuisance Remedies And Federal Regulations, Yang Wang
Michigan Law Review
Part I of this Note reviews recent literature on the need for asymmetric discount rates in cost-benefit analysis. It observes that even though scholars disagree on the precise value of the appropriate discount rate, many agree that future costs and benefits must be discounted at different rates. Part II then constructs a simple model, consisting of two activities competing for the same resource, and analyzes the consequences of asymmetric discounting under this model. This Part proposes that, to maximize the joint social utility, the resource should be time divided between the competing activities rather than permanently allocated to one or …
Reverse Monitoring: On The Hidden Role Of Employee Stock-Based Compensation, Sharon Hannes
Reverse Monitoring: On The Hidden Role Of Employee Stock-Based Compensation, Sharon Hannes
Michigan Law Review
This Article develops a new understanding of equity-based compensation schemes, such as employee stock option plans. Current literature views such schemes as a measure aimed at motivating the recipient employees to work harder for the firm. Under that view, this method of remuneration either complements or substitutes for other measures used to monitor the performance of the recipient employees. In contrast, this Article proposes that recipient employees be viewed as potential monitors of other employees and that stock options (or similar types of compensation) motivate them to fulfill this task. This view has many applications and can shed light on …
Should Patent Infringement Require Proof Of Copying?, Mark A. Lemley
Should Patent Infringement Require Proof Of Copying?, Mark A. Lemley
Michigan Law Review
Patent infringement is a strict liability offense. Patent law gives patent owners not just the right to prevent others from copying their ideas, but the power to control the use of their idea--even by those who independently develop a technology with no knowledge of the patent or the patentee. This is a power that exists nowhere else in intellectual property (IP) or real property law, but it is a one that patentees have had, with rare exceptions, since the inception of the Republic. In an important paper in the Michigan Law Review, Samson Vermont seeks to change this, arguing …
Proximate Cause In Constitutional Torts: Holding Interrogators Liable For Fifth Amendment Violations At Trial, Joel Flaxman
Proximate Cause In Constitutional Torts: Holding Interrogators Liable For Fifth Amendment Violations At Trial, Joel Flaxman
Michigan Law Review
This Note argues for the approach taken by the Sixth Circuit in McKinley: a proper understanding of the Fifth Amendment requires holding that an officer who coerces a confession that is used at trial to convict a defendant in violation of the right against self-incrimination should face liability for the harm of conviction and imprisonment. Part I examines how the Supreme Court and the circuits have applied the concept of common law proximate causation to constitutional torts and argues that lower courts are wrong to blindly adopt common law rules without reference to the constitutional rights at stake. It …
One Stop, No Stop, Two Stop, Terry Stop: Reasonable Suspicion And Pseudoephedrine Purchases By Suspected Methamphetamine Manufacturers, Andrew C. Goetz
One Stop, No Stop, Two Stop, Terry Stop: Reasonable Suspicion And Pseudoephedrine Purchases By Suspected Methamphetamine Manufacturers, Andrew C. Goetz
Michigan Law Review
This Note attempts to inject some clarity into courts' reasonable suspicion calculus for cold medicine purchases. It argues that the key factor in analyzing such purchases is whether the purchaser or purchasers appear to be circumventing pseudoephedrine purchasing restrictions in order to obtain inordinately large quantities of pseudoephedrine. Part I provides a general background on the domestic manufacture of methamphetamine in small, clandestine laboratories. Part II then examines the interplay between outward innocence and reasonable suspicion under the Supreme Court's Fourth Amendment jurisprudence. Finally, Part III establishes a framework for identifying purchasing strategies that methamphetamine manufacturers commonly use to circumvent …
Life-Giving Speech Amid An Empire Of Silence, Walter Brueggemann
Life-Giving Speech Amid An Empire Of Silence, Walter Brueggemann
Michigan Law Review
It will come as no surprise to readers of the Law Review that James Boyd White is a daring and wise practitioner of what Clifford Geertz terms "blurred genres." By appeal to Kenneth Burke, Victor Turner, and Paul Ricoeur, among others, Geertz envisions a broad interpretive venture that breaks out of the rigid regulations of a particular discipline to the larger constructive enterprise that entertains life and its meaning as a "game" of face-to-face engagement, or as a "drama" that presses on to the next scene. White's work fits that vision precisely. In Living Speech: Resisting the Empire of Force, …
Property, Contracts, And Politics, Mark Tushnet
Property, Contracts, And Politics, Mark Tushnet
Michigan Law Review
Rebecca Scott is a historian, not an economist. Describing how a dispute over a mule's ownership was resolved, Professor Scott reproduces a receipt two claimants left when they took the mule from the plantation whose manager claimed it as well (p. 185). By contrast, analyzing property relations in the pre-Civil War American South, economic historian Jenny Wahl observes, "[E]conomic historians tend to [use] ... frequency tables, graphs, and charts." The differences in visual aids to understanding indicate the various ways historians and economists approach a single topic-the relation between markets and politics, the latter defined to include the deployment of …
Keeping The State Out: The Separation Of Law And State In Classical Islamic Law, Lubna A. Alam
Keeping The State Out: The Separation Of Law And State In Classical Islamic Law, Lubna A. Alam
Michigan Law Review
The implementation and enforcement of Islamic law, especially Islamic criminal law, by modem-day Muslim nation-states is fraught with controversy and challenges. In Pakistan, the documented problems and failures of the country's attempt to codify Islamic law on extramarital sexual relations have led to efforts to remove rape cases from Islamic law courts to civil law courts. In striking contrast to Pakistan's experience, the Republic of the Maldives recently commissioned a draft of a penal law and sentencing guidelines based on Islamic law that abides by international norms. The incorporation of Islamic law into the legal systems of various countries around …
Looking Backward: Richard Epstein Ponders The "Progressive" Peril, Michael Allan Wolf
Looking Backward: Richard Epstein Ponders The "Progressive" Peril, Michael Allan Wolf
Michigan Law Review
In the 1888 novel Looking Backward, Edward Bellamy dreamed up a twentieth century America that was a socialist utopia, a vision invoked four years later by the conservative Justice David J. Brewer as a warning against government regulation. In How Progressives Rewrote the Constitution, Richard Epstein, looking back at the twentieth century through an interpretive lens much more similar to Brewer's than Bellamy's, sees and bemoans the growth of a dominant big government of which the novelist could only dream. Epstein pulls no punches in his attack on those he deems responsible for the shift in the American …
Classic Revisited: Penal Theory In Paradise Lost, Jillisa Brittan, Richard A. Posner
Classic Revisited: Penal Theory In Paradise Lost, Jillisa Brittan, Richard A. Posner
Michigan Law Review
Milton's great poem can be enjoyed as a supernatural adventure story in the epic tradition-indeed almost as a science-fiction fantasy. An incredibly powerful supernatural figure-call him Father-lives on planet Heaven somewhere in outer space, surrounded by lesser supernatural beings, called Angels. Father begets Son asexually, and declares his intent to give him vice regal authority. Infuriated at Son's being promoted over him, the foremost Angel, L leads a third of the Angels in violent rebellion against Father and Son. At first it seems the rebels will best the loyal Angels. But Father sends in Son to defeat the rebels all …
Capital Defense Lawyers: The Good, The Bad, And The Ugly, Sean D. O'Brien
Capital Defense Lawyers: The Good, The Bad, And The Ugly, Sean D. O'Brien
Michigan Law Review
Professor Welsh S. White's book Litigating in the Shadow of Death: Defense Attorneys in Capital Cases collects the compelling stories of "a new band of dedicated lawyers" that has "vigorously represented capital defendants, seeking to prevent their executions" (p.3). Sadly, Professor White passed away on New Year's Eve, 2005, days before the release of his final work. To the well-deserved accolades of Professor White that were recently published in the Ohio State Journal of Criminal Law, I can only add a poignant comment in a student blog that captures his excellence as a scholar and educator: "I wanted to …
Young Associates In Trouble, William D. Henderson, David Zaring
Young Associates In Trouble, William D. Henderson, David Zaring
Michigan Law Review
Large law firms have reputations as being tough places to work, and the larger the firm, the tougher the firm. Yet, notwithstanding the grueling hours and the shrinking prospects of partnership, these firms perennially attract a large proportion of the nation's top law school graduates. These young lawyers could go anywhere but choose to work at large firms. Why do they do so if law firms are as inhospitable as their reputations suggest? Two recent novels about the lives of young associates in large, prestigious law firms suggest that such a rational calculation misapprehends the costs. Law professor Kermit Roosevelt's …
"Quotidian" Judges Vs. Al-Qaeda, Mark S. Davies
"Quotidian" Judges Vs. Al-Qaeda, Mark S. Davies
Michigan Law Review
In Terror in the Balance: Security, Liberty, and the Courts, University of Chicago law professors Eric A. Posner and Adrian Vermeule invite those of us worried about the American response to al-Qaeda to consider the proper role of judges. Judges, of course, are not being dispatched to the hills of Pakistan nor are they securing our borders or buildings. But as the executive seeks to implement a range of new policies in the name of protecting us from al-Qaeda, the judicial treatment of these policies shapes the American response. Posner and Vermeule suggest a kind of Hippocratic view of …
The Theory And Practice Of Tax Reform, Lawrence Zelenak
The Theory And Practice Of Tax Reform, Lawrence Zelenak
Michigan Law Review
On January 7, 2005, President Bush-flush with recent electoral victory- issued an Executive Order creating the President's Advisory Panel on Federal Tax Reform. The Order instructed the bipartisan Panel to recommend one or more plans for major reform of the federal income tax. The president did not, however, permit the Panel to begin its work on a blank slate. Instead, the Order required (among other things) that the Panel's proposals be revenue-neutral, simpler than current law, "appropriately progressive," and supportive of homeownership and charity. Although the Order contemplated that the Panel might offer more than one tax reform plan, it …
A Syllabus Of Errors, Douglas Laycock
A Syllabus Of Errors, Douglas Laycock
Michigan Law Review
Modern American society is pervasively regulated. It is also religiously diverse to a degree that is probably unprecedented in the history of the world. It is inevitable that some of these diverse religious practices will violate some of these pervasive regulations, and equally inevitable that if we ask whether all these regulations are really necessary, sometimes the answer will be no. If we take free exercise of religion seriously, sometimes it will make sense to exempt sincere religious practices from generally applicable laws - but only some laws, and only some applications. Hardly anyone thinks that human sacrifice should be …
A Response To Professor Laycock, Marci A. Hamilton
A Response To Professor Laycock, Marci A. Hamilton
Michigan Law Review
Almost a hundred years ago, the American Association of University Professors established guidelines for civility among scholars, saying that academic exchanges "should be set forth with dignity, courtesy, and temperateness of language." I agree wholeheartedly with these principles, and I will not succumb to the temptation to respond in kind to Professor Laycock's review. Tone is much less important than having a frank exchange of views. It is well known that Professor Laycock and I have very different perspectives on the proper interpretation of the Free Exercise Clause. His review and my response should be an opportunity for us to …
Antitrust Modesty, Daniel A. Crane
Antitrust Modesty, Daniel A. Crane
Michigan Law Review
Given Hovenkamp's influence and intellect, the publication of The Antitrust Enterprise is a major event, particularly since he sets out, according to the book's jacket, to provide "the first authoritative and compact exposition of antitrust law since Robert Bork's classic The Antitrust Paradox was published more than thirty years ago." Nevertheless, one could quibble with the jacket's claim. Richard Posner substantially updated his own authoritative and compact exposition of antitrust law in 2001. In a 2003 book review, Hovenkamp called Posner's second edition a "marvelous and important book." So, before beginning a review of Hovenkamp's new work, it seems necessary …
The Bureaucratic Court, Benjamin C. Mizer
The Bureaucratic Court, Benjamin C. Mizer
Michigan Law Review
In August 2006, the New York Times caused a stir by reporting that the number of female law clerks at the United States Supreme Court has fallen sharply in the first full Term in which Justice Sandra Day O'Connor is no longer on the bench. In an era in which nearly fifty percent of all law school graduates are women, the Times reported, less than twenty percent of the clerks in the Court's 2006 Term - seven of thirty-seven - are women. In interviews, Justices Souter and Breyer viewed the sharp drop in the number of female clerks as an …
Scrutinizing The Second Amendment, Adam Winkler
Scrutinizing The Second Amendment, Adam Winkler
Michigan Law Review
One overlooked issue in the voluminous literature on the Second Amendment is what standard of review should apply to gun control if the Amendment is read to protect an individual right to bear arms. This lack of attention may be due to the assumption that strict scrutiny would necessarily apply because the right would be "fundamental" or because the right is located in the Bill of Rights. In this Article, Professor Winkler challenges that assumption and considers the arguments for a contrary conclusion: that the Second Amendment's individual right to bear arms is appropriately governed by a deferential, reasonableness review …
Legal Fictions In Pierson V. Post, Andrea Mcdowell
Legal Fictions In Pierson V. Post, Andrea Mcdowell
Michigan Law Review
American courts and citizens generally take the importance of private property for granted. Scholars have sought to explain its primacy using numerous legal doctrines, including natural law, the Lockean principle of a right to the product of one's labor, Law & Economics theories about the incentives created by property ownership, and the importance of bright line rules. The leading case on the necessity of private property, Pierson v. Post, makes all four of these points. This Article argues that Pierson has been misunderstood. Pierson was in fact a defective torts case that the judges shoe-horned into a property mold …
Voter Identification, Spencer Overton
Voter Identification, Spencer Overton
Michigan Law Review
In the wake of closely contested elections, calls for laws that require voters to present photo identification as a condition to cast a ballot have become pervasive. Advocates tend to rely on two rhetorical devices: (1) anecdotes about a couple of elections tainted by voter fraud; and (2) "common sense" arguments that voters should produce photo identification because identification is required to board airplanes, buy alcohol, and engage in other activities. This Article explains the analytical shortcomings of anecdote, analogy, and intuition, and applies a cost-benefit approach generally overlooked in election law scholarship. Rather than rushing to impose a photo-identification …
Keeping The Door Ajar For Foreign Plaintiffs In Global Cartel Cases After Empagran, Jeremy M. Suhr
Keeping The Door Ajar For Foreign Plaintiffs In Global Cartel Cases After Empagran, Jeremy M. Suhr
Michigan Law Review
In many ways, the Supreme Court's opinion of F. Hoffmann-LaRoche Ltd. V. Empagran S.A. raised more questions than it answered. Growing out of the massive international vitamins cartel uncovered in the 1990s, Empagran presented a scenario in which all parties were foreign and all conduct occurred abroad. Although it is "well established by now that the Sherman Act applies to foreign conduct that was meant to produce and did in fact produce some substantial effect in the United States," Empagran presented the Court with the first truly foreign antitrust case. It involved not only foreign conduct, but also foreign plaintiffs …
Mostly Harmless: An Analysis Of Post-Aedpa Federal Habeas Corpus Review Of State Harmless Error Determinations, Jeffrey S. Jacobi
Mostly Harmless: An Analysis Of Post-Aedpa Federal Habeas Corpus Review Of State Harmless Error Determinations, Jeffrey S. Jacobi
Michigan Law Review
Sixty years ago, in Kotteakos v. United States, the Supreme Court ruled that a small class of so-called harmless errors committed by courts did not require correction. The Court acknowledged that some judicial errors, though recognizable as errors, did not threaten the validity of criminal convictions and therefore did not quite require reversal. Specifically, the Court held that errors that violated federal statutes should be deemed harmless unless they had a "substantial and injurious effect or influence in determining the jury's verdict." While Kotteakos represented the Supreme Court's first treatment of the concept of harmlessness, other courts had a …
The Folklore Of Legal Biography, Mark Fenster
The Folklore Of Legal Biography, Mark Fenster
Michigan Law Review
Spencer Weber Waller's Thurman Arnold: A Biography faces the problem of making this life stand out, and this Review seeks both to evaluate his rendering-which it does in Part II, after providing more details of the raw materials of Arnold's life in Part I-and to use Arnold's ideas to reflect on the endeavor of the legal biography. Although other works bearing on Arnold's life have been available,' Waller's competent, readable chronicle will provide an authoritative source of information and satisfy the desires of general readers interested in accomplished legal lives and seeking a straightforward account of Arnold's career. But Waller's …
The D'Oh! Of Popular Constitutionalism, Neal Devins
The D'Oh! Of Popular Constitutionalism, Neal Devins
Michigan Law Review
This Review will be divided into three parts. Part I will both summarize The Most Democratic Branch and highlight some of the difficulties that the Supreme Court would face in implementing Rosen's decision-making model. In particular, by allowing the Court to invalidate laws for a host of "antidemocratic" reasons, Rosen's matrix does not constrain the Court in a predictable way. Part II will examine some of the empirical evidence about public attitudes toward the Supreme Court, including public awareness of Supreme Court decisions. I will contend that the Court cannot look to the people to sort out the Constitution's meaning …
Private Ordering And Intimate Spaces: Why The Ability To Negotiate Is Non-Negotiable, Michele Goodwin
Private Ordering And Intimate Spaces: Why The Ability To Negotiate Is Non-Negotiable, Michele Goodwin
Michigan Law Review
This review moves beyond a critique of Cherry's study to incorporate a radical new way of thinking about organ commodification as a social justice issue. Part I provides a brief empirical overview of organ demand in the United States, offering an alternative perspective and introducing data illexamined in commodification debates. Part II challenges the notion that private ordering abandons liberal and egalitarian values in favor of individualism over communitarianism. It also acknowledges the limitations of private ordering and addresses how its more problematic features, including the abuse of power, might be avoided. Part III argues for a hybrid system that …
Interview With James Boyd White, James Boyd White
Interview With James Boyd White, James Boyd White
Michigan Law Review
The occasion of the following interview was the Montesquieu Lecture at the University of Tilburg, which Professor James Boyd White delivered in February 2006. In the lecture, entitled "When Language Meets the Mind," Professor White discussed the manner of interpreting and criticizing texts, both in the law and in other fields, that he has worked out over his career. The heart of this method, as described in the lecture, is to direct attention to three sets of questions: - What is the language in which this text is written, and the culture of which it is a part? How are …
Fixing 404, Joseph A. Grundfest, Steven E. Bochner
Fixing 404, Joseph A. Grundfest, Steven E. Bochner
Michigan Law Review
Although debate persists as to whether the costs of Sarbanes-Oxley's Section 404 regulations exceed their benefits, there is broad consensus that the rules have been inefficiently implemented. Substantive and procedural factors contribute to the rules' inefficiency. From a substantive perspective, the terms "material weakness" and "significant deficiency" are central to the implementing regulations and are easily interpreted to legitimize audits of controls that have only a remote probability of causing an inconsequential effect on the issuer's financial statements. As a quantitative matter the literature suggests that a control with a remote probability of causing an inconsequential effect has an expected …