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Michigan Law Review

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A Business Ethics Perspective On Sarbanes-Oxley And The Organizational Sentencing Guidelines, David Hess Jan 2007

A Business Ethics Perspective On Sarbanes-Oxley And The Organizational Sentencing Guidelines, David Hess

Michigan Law Review

This Article assesses the ability of Sarbanes-Oxley and other recent changes in the law and stock exchange listing requirements to reduce the incidence of fraud and to increase the reporting of financial misconduct. It begins by examining the individual decision-makers within a corporation and analyzing their intentions and behaviors under the Theory of Planned Behavior. It then examines the ability of the organization to influence the employees' intentions and behaviors through codes of ethics and compliance programs, and finds growing support for the usefulness of integrity based compliance programs. Finally, the Article considers how the Sarbanes-Oxley legislation and Organizational Sentencing …


Secondhand Smoke Signals From Prison, Scott C. Wilcox Jan 2007

Secondhand Smoke Signals From Prison, Scott C. Wilcox

Michigan Law Review

This Note argues that courts should acknowledge current societal and medical perspectives on second hand smoke (SHS) and afford real protection to prisoners against SHS through injunctive relief. Part I examines evidence that conclusively demonstrates the serious risk of harm posed by SHS to the health of inmates. It reports that inmates' long-term exposure to SHS increases their risk of contracting lung cancer, heart disease, and other potentially life threatening conditions. Part II argues that, as required by the Helling standard, contemporary society does not tolerate involuntary, long-term exposure to SHS and that prison officials exhibit deliberate indifference by allowing …


Divorcees Turn About In Their Graves As Ex-Spouses Cash In: Codified Constructive Trusts Ensure An Equitable Result Regarding Erisa-Governed Employee Benefit Plans, Sarabeth A. Rayho Jan 2007

Divorcees Turn About In Their Graves As Ex-Spouses Cash In: Codified Constructive Trusts Ensure An Equitable Result Regarding Erisa-Governed Employee Benefit Plans, Sarabeth A. Rayho

Michigan Law Review

A revocation-by-divorce statute essentially nullifies a devise in a divorced decedent's will when the devise bequeaths property to the decedent's ex-spouse and the will was executed during their marriage. Until recently, state revocation-by-divorce statutes unquestionably applied not only to wills but also to will substitutes, including ERISA-governed employee benefit plans. In 2001, the Supreme Court held in Egelhoff v. Egelhoff ex rel. Breiner that ERISA preempts traditional state revocation-by-divorce statutes as applied to ERISA-governed employee benefit plans. In the wake of the Egelhoff decision, plan administrators may automatically pay proceeds to the listed beneficiary, even an ex-spouse, regardless of the …


The Disgorgement Interest In Contract Law, Melvin A. Eisenberg Dec 2006

The Disgorgement Interest In Contract Law, Melvin A. Eisenberg

Michigan Law Review

Restatement Second of Contracts provided that contract law serves to protect one or more of three interests: the expectation interest, the reliance interest, and the restitution interest. There is, however a fourth interest that contract law should and does protect: the disgorgement interest, which is the promisee's interest in requiring the promisor to disgorge a gain that was made possible by the promisor's breach, but did not consist of a benefit conferred on the promisor by the promisee. It is not clear why Restatement Second excluded the disgorgement interest. Perhaps the drafters believed that this position was compelled by positive …


Party On: The Right To Voluntary Blanket Primaries, Margaret P. Aisenbrey Dec 2006

Party On: The Right To Voluntary Blanket Primaries, Margaret P. Aisenbrey

Michigan Law Review

Political parties have unique associational rights. In party primaries, party members associate to further their common political beliefs, and more importantly, to nominate candidates. These candidate are the "standard bearer[s]" for the political party-the people who "best represent[ ] the party's ideologies and preferences." The primary represents a "crucial juncture at which the appeal to common principles may be translated into concerted action, and hence to political power in the community." Because the primary is such a critical moment for the political party, the party's asso-ciational rights are most important at this time.


The Cognitive Psychology Of Circumstantial Evidence, Kevin Jon Heller Nov 2006

The Cognitive Psychology Of Circumstantial Evidence, Kevin Jon Heller

Michigan Law Review

Empirical research indicates that jurors routinely undervalue circumstantial evidence (DNA, fingerprints, and the like) and overvalue direct evidence (eyewitness identifications and confessions) when making verdict choices, even though false-conviction statistics indicate that the former is normally more probative and more reliable than the latter The traditional explanation of this paradox, based on the probability-threshold model of jury decision-making, is that jurors simply do not understand circumstantial evidence and thus routinely underestimate its effect on the objective probability of the defendant's guilt. That may be true in some situations, but it fails to account for what is known in cognitive psychology …


Burkean Minimalism, Cass R. Sunstein Nov 2006

Burkean Minimalism, Cass R. Sunstein

Michigan Law Review

Burkean minimalism has long played an important role in constitutional law. Like other judicial minimalists, Burkeans believe in rulings that are at once narrow and theoretically unambitious; what Burkeans add is an insistence on respect for traditional practices and an intense distrust of those who would renovate social practices by reference to moral or political reasoning of their own. An understanding of the uses and limits of Burkean minimalism helps to illuminate a number of current debates, including those involving substantive due process, the Establishment Clause, and the power of the president to protect national security. Burkean minimalists oppose, and …


Inside The Administrative State: A Critical Look At The Practice Of Presidential Control, Lisa Schultz Bressman, Michael P. Vandenbergh Oct 2006

Inside The Administrative State: A Critical Look At The Practice Of Presidential Control, Lisa Schultz Bressman, Michael P. Vandenbergh

Michigan Law Review

From the inception of the administrative state, scholars have proposed various models of agency decision-making to render such decision-making accountable and effective, only to see those models falter when confronted by actual practice. Until now, the "presidential control" model has been largely impervious to this pattern. That model, which brings agency decision-making under the direction of the president, has strengthened over time, winning broad scholarly endorsement and bipartisan political support. But it, like prior models, relies on abstractions - for example, that the president represents public preferences and resists parochial pressures that do not hold up as a factual matter. …


Concurring In Part & Concurring In The Confusion, Sonja R. West Aug 2006

Concurring In Part & Concurring In The Confusion, Sonja R. West

Michigan Law Review

When a federal appellate court decided last year that two reporters must either reveal their confidential sources to a grand jury or face jail time, the court did not hesitate in relying on the majority opinion in the Supreme Court's sole comment on the reporter's privilege-Branzburg v. Hayes. "The Highest Court has spoken and never revisited the question. Without doubt, that is the end of the matter," Judge Sentelle wrote for the three-judge panel of the Circuit Court of Appeals for the District of Columbia. By this declaration, the court dismissed with a wave of its judicial hand the arguments …


Learning The Wrong Lessons From "An American Tragedy": A Critique Of The Berger-Twerski Informed Choice Proposal, David E. Bernstein Aug 2006

Learning The Wrong Lessons From "An American Tragedy": A Critique Of The Berger-Twerski Informed Choice Proposal, David E. Bernstein

Michigan Law Review

Margaret Berger and Aaron Twerski are among the leading scholars in their respective fields of Evidence and Products Liability. I have benefited from their work on many occasions. Precisely because of the deserved respect and esteem in which Berger and Twerski are held-not to mention the prominence of their forum, the Michigan Law Review-their proposal to create a new "informed choice" cause of action in pharmaceutical litigation is likely to receive sympathetic attention. Because I believe that their proposal is ill-conceived and dangerous, I feel compelled (with some trepidation) to write this response. Berger and Twerski propose that courts recognize …


Information Asymmetries And The Rights To Exclude, Lior Jacob Strahilevitz Aug 2006

Information Asymmetries And The Rights To Exclude, Lior Jacob Strahilevitz

Michigan Law Review

The American law generally regards the "bundle of rights" as property's dominant metaphor. On this conception of property, ownership empowers an individual to control a particular resource in any number of ways. For example, he may use it, transfer it, exclude others from it, divide it, and perhaps even destroy it. The various rights in the bundle, however, are not equal in terms of importance. To the contrary, American courts and commentators have deemed the "right to exclude" foremost among the property rights, with the Supreme Court characterizing it as the "hallmark of a protected property interest" and leading property …


The Executive Role In Culturing Export Control Compliance, Matthew G. Morris Jun 2006

The Executive Role In Culturing Export Control Compliance, Matthew G. Morris

Michigan Law Review

Part I argues that the nature of export control enforcement requires extensive self-governing behavior on the part of exporters and that enforcement should be directed toward that end. Part II examines several possible justifications for penalizing a business entity and concludes that deterrence and rehabilitation through education are the most viable, particularly in a self-regulating industry. Part III argues that examining the export compliance program is actually a necessary prerequisite to determining the general culpability required under the general factors, and on that basis alone cannot be relegated to a mitigating factor. Part IV argues that an emphasis on corporate …


The Political Market For Criminal Justice, Rachel E. Barkow Jun 2006

The Political Market For Criminal Justice, Rachel E. Barkow

Michigan Law Review

In 2004, the number of individuals incarcerated in the United States exceeded the two million mark. The current incarceration rate in the United States is 726 per 100,000 residents, the highest incarceration rate in the Western world and a dramatic increase from just three decades ago. Not only are more people serving time, but sentences have markedly lengthened. What should we make of these trends? The answer has been easy for most legal scholars: to them, the incarceration rate in the United States is too high, and reforms are necessary to lower sentences. But many political leaders and voters reach …


Crime, Criminals, And Competitive Crime Control, Wayne A. Logan Jun 2006

Crime, Criminals, And Competitive Crime Control, Wayne A. Logan

Michigan Law Review

Given the negative consequences of crime, it should come as no surprise that states will endeavor to make their dominions less hospitable to potential criminal actors. This predisposition, when played out on a national stage, would appear ripe for a dynamic in which states will seek to "out-tough" one another, leading to a spiral of detrimental competitiveness. Doran Teichman, in an article recently appearing in these pages, advances just such a view. Teichman posits that the decentralized structure of America's federalist system provides states with "an incentive to increasingly harshen" their crime control efforts, with the net result being excessive …


Decentralizing Crime Control: The Political Economy Perspective, Doron Teichman Jun 2006

Decentralizing Crime Control: The Political Economy Perspective, Doron Teichman

Michigan Law Review

In an article recently published on the pages of this Law Review, The Market for Criminal Justice: Federalism, Crime Control, and Jurisdictional Competition ("The Market"), I put forward a theory of crime control in a decentralized government. Specifically, I made three distinct claims. First, criminal justice policies affect the geographic decision of criminals as to where to commit their crimes. Other things being equal, criminal activity will tend to shift to areas in which the expected sanction is lower. Second, local jurisdictions attempting to lower their crime rates will react to policies adopted by neighboring jurisdictions and try …


The Multistate Bar Exam As A Theory Of Law, Daniel J. Solove May 2006

The Multistate Bar Exam As A Theory Of Law, Daniel J. Solove

Michigan Law Review

What is the most widely read work of jurisprudence by those in the legal system? Is it H.L.A. Hart's The Concept of Law? Ronald Dworkin's Law's Empire? No. It is actually the Multistate Bar Exam ("Bar Exam"). Perhaps no other work on law has been so widely read by those in the legal profession. Although the precise text of the Bar Exam is different every year, it presents a jurisprudence that transcends the specific language of its text. Each year, thousands of lawyers-to-be ponder over it, learning its profound teachings on the meaning of the law. They study …


To Err Is Human, Keith A. Rowley May 2006

To Err Is Human, Keith A. Rowley

Michigan Law Review

There are many kinds of mistakes. One kind-a rational, well-intended act or decision resulting in unanticipated, negative consequences-was the focus of Allan Farnsworth's previous foray into the realm of legal angst. Another kind-an act or decision prompted by an inaccurate, incomplete, or uninformed mental state and resulting in unanticipated, negative consequences- is the subject of the present book. Like its predecessor, Alleviating Mistakes does not confine itself to contract law, Farnsworth's home turf; it explores criminal, tort, restitution, and other areas of substantive law as well. As such, it paints on too large a canvas to capture its entirety in …


What Nobody Knows, John C. P. Goldberg May 2006

What Nobody Knows, John C. P. Goldberg

Michigan Law Review

By meditating on displays of cunning in literature, history, and current events, Don Herzog in his new book isolates and probes difficult puzzles concerning how to understand and evaluate human conduct. The point of the exercise is not to offer a system or framework for resolving these puzzles. Quite the opposite, Cunning aims to discomfit its academic audience in two ways. First, it sets out to show that some of the central dichotomies of modem thought-those between means and ends, reason and desire, self-interest and morality, fact and value, virtue and vice, knowledge and politics, authenticity and artifice, and appearance …


The Four Pillars Of Work Law, Orly Lobel May 2006

The Four Pillars Of Work Law, Orly Lobel

Michigan Law Review

In our contemporary legal landscape, a student wishing to study the law of the workplace has scarce opportunity to encounter an integrated body of scholarship that analyzes the labor market as the subject of government regulation, contractual duties, collective action, and individual rights. Work law developed in the American legal system as a patchwork of common law doctrine, federal and state statutes, and evolving social norms. Typical law school curricula often include courses relating to the four pillars of work law: "employment law," "labor law," "employment discrimination," and some variation of a tax-oriented "employee-benefits law." Employment law, in most categorizations, …


The Current Landscape Of Race: Old Targets, New Opportunities, Richard Delgado May 2006

The Current Landscape Of Race: Old Targets, New Opportunities, Richard Delgado

Michigan Law Review

It is difficult enough identifying areas within a current field of scholarship that are underdeveloped and in need of further attention. In science, one thinks of missing elements in the periodic table or planets in a solar system that our calculations tell us must be there but that our telescopes have not yet spotted. In civil-rights law, one thinks of such areas as women's sports or the problems of intersectional groups, such as women of color or gay black men. One also thinks of issues that current events are constantly thrusting forward, such as discrimination against Arabs or execution of …


Facing Evil, Joseph E. Kennedy May 2006

Facing Evil, Joseph E. Kennedy

Michigan Law Review

It is no earthshaking news that the American public has become fascinated- some would say obsessed-with crime over the last few decades. Moreover, this fascination has translated into a potent political force that has remade the world of criminal justice. Up through the middle of the 1960s crime was not something about which politicians had much to say. What was there to say? "Crime is bad." "We do what we can about crime." "Crime will always be with us at one level or another." Only a hermit could have missed the transformation of crime over the last couple of decades …


Science, Humanity, And Atrocity: A Lawyerly Examination, Steven D. Smith May 2006

Science, Humanity, And Atrocity: A Lawyerly Examination, Steven D. Smith

Michigan Law Review

Joseph Vining's reflection on (as the subtitle indicates) the claims of science and humanity begins with a terse but disturbing recitation of these and similar scientific experiments conducted on human beings during the twentieth century in Manchuria, Nazi Germany, and Pol Pot's Cambodia. The incidents are conveyed through quotations, sometimes of the coldly clinical prose that the researchers themselves chose as most suitable for their purposes. These quotations are juxtaposed against others from an array of distinguished scientists and philosophers explaining the naturalistic cosmology that, in the view of these thinkers, modern science has given us: it is a stark, …


"I'D Like To Teach The World To Sing (In Perfect Harmony)": International Judicial Dialogue And The Muses - Reflections On The Perils And The Promise Of International Judicial Dialogue, Ronald J. Krotoszynski Jr. May 2006

"I'D Like To Teach The World To Sing (In Perfect Harmony)": International Judicial Dialogue And The Muses - Reflections On The Perils And The Promise Of International Judicial Dialogue, Ronald J. Krotoszynski Jr.

Michigan Law Review

Proponents of international judicial dialogue would do well to read, and reflect upon, the conversations chronicled in Judges in Contemporary Democracy. In a lucid and candid series of interlocutions, five preeminent constitutional jurists and one highly regarded constitutional theorist ponder some of the most difficult questions about the role of a judge on a constitutional court. In particular, the participants-including Stephen Breyer (Associate Justice of the Supreme Court of the United States), Robert Badinter (former President of the Constitutional Council of France), Antonio Cassese (former President of the International Criminal Tribunal for the Former Yugoslavia), Dieter Grimm (former Justice of …


Herbert Hart Elucidated, A. W. Brian Simpson May 2006

Herbert Hart Elucidated, A. W. Brian Simpson

Michigan Law Review

There are a number of good biographies of judges, but very few of individual legal academics; indeed, so far as American legal academics are concerned, the only one of note that comes to mind is William Twining's life of Karl Llewellyn. Llewellyn was, of course, a major figure in the evolution of American law, and his unusual life was a further advantage for his biographer. In this biography, Nicola Lace has taken as her subject an English academic who also had an unusual career, one whose contribution was principally not to the evolution of the English legal system but to …


Pathological Patenting: The Pto As Cause Or Cure, Rochelle Dreyfuss May 2006

Pathological Patenting: The Pto As Cause Or Cure, Rochelle Dreyfuss

Michigan Law Review

The Patent Act was last revised in 1952. The hydrogen bomb was exploded that year, vividly demonstrating the power of the nucleus; in the ensuing postwar period, the Next Big Thing was clearly the molecule. Novel compounds were synthesized in the hopes of finding new medicines; solid-state devices exploited the special characteristics of germanium and other semiconductors; as investments in polymer chemistry soared, advice to the college graduate soon boiled down to "one word ... just one word[:] ... Plastics." Over the next half-century, things changed dramatically. "Better living through chemistry" has begun to sound dated (if not sinister). Genomics …


Contract As Statute, Stephen J. Choi, G. Mitu Gulati Mar 2006

Contract As Statute, Stephen J. Choi, G. Mitu Gulati

Michigan Law Review

The traditional model of contract interpretation focuses on the "meeting of the minds." Parties agree on how to structure their respective obligations and rights and then specify their agreement in a written document. Gaps and ambiguities are inevitable. But where contract language exists for the point in contention and a dispute arises as to the meaning of this language, courts attempt to divine what the parties intended. Among the justifications for deferring to the intent of the parties is the assumption that parties know what is best for themselves. Deference also arguably furthers autonomy values. Not all contracts and contract …


Modularity In Contracts: Boilerplate And Information Flow, Henry E. Smith Mar 2006

Modularity In Contracts: Boilerplate And Information Flow, Henry E. Smith

Michigan Law Review

Contractual boilerplate is a little like property. Such a statement might seem like a category mistake. After all, contractual boilerplate language is part of contracts, which, unlike property, are freely customizable by the parties. Contracts create rights between those parties, not against the world at large. Nor do people who devise new boilerplate terms usually have intellectual property in the provisions themselves. I will argue that, in an interesting and overlooked way, boilerplate is the first way station on the road from contract to property. In particular, boilerplate, like all legal communication, is the result of striking a trade-off between …


One-Sided Contracts In Competitive Consumer Markets, Lucian A. Bebchuk, Richard A. Posner Mar 2006

One-Sided Contracts In Competitive Consumer Markets, Lucian A. Bebchuk, Richard A. Posner

Michigan Law Review

The usual assumption in economic analysis of law is that in a competitive market without informational asymmetries, the terms of contracts between sellers and buyers will be optimal-that is, that any deviation from these terms would impose expected costs on one party that exceed benefits to the other. But could there be cases in which "one-sided" contracts containing terms that impose a greater expected cost on one side than benefit on the other-would be found in competitive markets even in the absence of fraud, prohibitive information costs, or other market imperfections? That is the possibility we explore in this Article.


The Return Of Bargain: An Economic Theory Of How Standard-Form Contracts Enable Cooperative Negotiation Between Businesses And Consumers, Jason Scott Johnston Mar 2006

The Return Of Bargain: An Economic Theory Of How Standard-Form Contracts Enable Cooperative Negotiation Between Businesses And Consumers, Jason Scott Johnston

Michigan Law Review

Among attorneys, judges, and legal academics, there is virtual consensus that the widespread use by business firms of standard-form contracts in their dealings with consumers has completely eliminated bargaining in consumer contracts. I believe that this perception is false, that rather than precluding bargaining and negotiation, standard-form contracts in fact facilitate bargaining and are a crucial instrument in the establishment and maintenance of cooperative relationships between firms and their customers. On this view, which I elaborate below, firms use clear and unconditional standard form contract terms not because they will insist upon those terms, but because they have given their …


"Contracting" For Credit, Ronald J. Mann Mar 2006

"Contracting" For Credit, Ronald J. Mann

Michigan Law Review

On a recent day, I used my credit cards in connection with a number of minor transactions. I made eight purchases, and I paid two credit card bills. I also discarded (without opening) three solicitations for new cards, balance transfer programs, or other similar offers to extend credit via a credit card. Statistics suggest that I am not atypical. U.S. consumers last year used credit cards in about 100 purchasing transactions per capita, with an average value of about $70. At the end of the year, Americans owed nearly $500 billion dollars, in the range of $1,800 for every man, …