Law Commons^™

Adapting Private Law For Climate Change Adaptation, Jim Rossi, J. B. Ruhl

Vanderbilt Law Review

The private law of torts, property, and contracts will and should play an important role in resolving disputes regarding how private individuals and entities respond to and manage the harms of climate change that cannot be avoided through mitigation (known in climate change policy dialogue as “adaptation”). While adaptation is commonly presented as a problem needing legislative solutions, this Article presents a novel and overdue case for private law to take climate adaptation seriously.

To date, the role of private law is a significant blind spot in scholarly discussions of climate adaptation. Litigation invoking common-law doctrines in climate adaption disputes …

What’S In The Contract?: Rockefeller, The Hague Service Convention, And Serving Process Abroad, Thomas G. Vanderbeek

Vanderbilt Law Review

Today’s global economy relies on transnational commerce. The Convention on the Service Abroad of Judicial and Extrajudicial Documents in Civil or Commercial Matters (“Hague Service Convention”), implemented in 1965, encouraged transnational commerce by establishing a streamlined mechanism for serving foreign parties with process. More reliable international service methods helped ensure parties that they could resolve disputes with foreign parties through the courts. The Hague Service Convention thus created a bridge between civil and common law procedures on service while reducing some of the risks of engaging in business with foreign parties.

At the same time, the Hague Service Convention frequently …

Prospecting, Sharecropping, And The Recording Industry, Olufunmilayo B. Arewa, Matt Stahl

Vanderbilt Journal of Entertainment & Technology Law

Digital-era disruption has had a significant impact on the recording industry and the business of music more generally. Digital-era music disruption draws attention to patterns of continuity within the recording industry. Notably, despite widespread use of digital technologies for the creation, dissemination, and consumption of music, core recording industry business models largely still draw from the predigital era. Recording industry business models have long been compared to other exploitative business models based on debt, including the sharecropping business. Business models in the recording industry have been a source of dispute by a broad range of recording artists, including highly successful …

Basketball On Strike: The All-Stars Of The Fight For Racial Equality, Sherif Robert Hesni Jr.

Vanderbilt Journal of Entertainment & Technology Law

National Basketball Association players have a long history of fighting against racial injustice. In August 2020, players participated in the most attention-grabbing endeavor to date: a league-wide strike against racial discrimination in the United States. Refusing to play games entails financial risk for players because of a no-strike clause in the collective bargaining agreement between the National Basketball Players Association and National Basketball Association team governors. Team governors can fine, bench, or fire players for refusing to play. However, it may be infeasible to discipline players for attempting to fight for racial equality—-players are extremely important to the well-being of …

Theory Of The Nudnik: The Future Of Consumer Activism And What We Can Do To Stop It, Yonathan A. Arbel, Roy Shapira

Vanderbilt Law Review

How do consumers hold sellers accountable and enforce market norms? This Article contributes to our understanding of consumer markets in three ways. First, the Article identifies the role of a small subset of consumers—the titular “nudniks”—as engines of market discipline. Nudniks are those who call to complain, speak with managers, post online reviews, and file lawsuits. Typified by an idiosyncratic utility function and certain unique personality traits, nudniks pursue action where most consumers remain passive. Although derided in courtrooms and the court of public opinion, we show that nudniks can solve consumer collective action problems, leading to broad market improvements. …

Mozambican Illegal Debts: Testing The Odious Debt Doctrine, Mauro Megliani

Vanderbilt Journal of Transnational Law

In June 2019, the Constitutional Council of Mozambique delivered a judgment declaring a financial transaction arranged by the government in violation of the parliamentary prerogatives in budgetary matters unconstitutional. This was only the tip of an iceberg consisting of a series of transactions tainted with corruption. In the face of this illegality, many antidebt campaigners have invoked the application of the odious debt doctrine to block the enforcement of contractual claims and the availability of restitutionary remedies. Under the odious debt doctrine, a debt is odious if, in the awareness of the creditors, it is contracted without the consent of …

Signed, Sealed, Delivered--Not Yours: Why The Fair Labor Standards Act Offers A Framework For Regulating Gestational Surrogacy, Zoe M. Beiner

Vanderbilt Law Review

Over the past several decades, gestational surrogacy has emerged as a rapidly growing industry. Such growth has prompted an enormous amount of debate among scholars, human rights advocates, economists, and the media over a wide array of legal and ethical issues. This debate is perhaps most evident in the divergence of state approaches to the regulation of gestational surrogacy-for example, some states ban the practice entirely, others allow only altruistic arrangements, and many states simply do not address surrogacy at all. The fractured landscape of surrogacy regulation has resulted in artificially high costs and, often, uncertainty for all parties involved. …

Contract As Commodified Promise, Erik Encarnacion

Vanderbilt Law Review

Many scholars assume that lawmakers should design contract law with the goal of facilitating commercial promises. But the question of which promises count as commercial remains neglected. This Article argues that this question matters more than one might initially expect. Once we understand commerciality in terms of commodificationroughly, treating something as subject to market norms-surprising recommendations for reform follow. First, if contract law should enforce commodified promises, we should demote the consideration doctrine to a presumption of enforceability rather than a formal requirement. Second, we should adopt a rule, contrary to current doctrine in most jurisdictions in the United States, …

An Empirical Analysis Of Noncompetition Clauses And Other Restrictive Postemployment Covenants, Randall S. Thomas, Norman D. Bishara, Kenneth J. Martin

Vanderbilt Law Review

Employment contracts for most employees are not publicly available, leaving researchers to speculate about whether they contain postemployment restrictions on employee mobility, and if so, what those provisions look like. Using a large sample of publicly available CEO employment contracts, we are able to examine these noncompetition covenants, including postemployment covenants not to compete ("CNCs" or "noncompetes'), nonsolicitation agreements ("NSAs"), and nondisclosure agreements ("NDAs'). What we found confirms some long-held assumptions about restrictive covenants but also uncovers some surprises.

We begin by discussing why employers use restrictive covenants and examining how the courts have treated them. We then analyze an …

Duty In The Litigation-Investment Agreement: The Choice Between Tort And Contract Norms When The Deal Breaks Down, Anthony J. Sebok, W. Bradley Wendel

Vanderbilt Law Review

This Article begins by describing the market for investment in commercial litigationA Litigation-investment transactions share features of existing economic relationships, such as commercial lending, liability insurance, contingent fee-financed representation, and venture capital, but none of these existing practices furnishes a suitable analogy for regulating litigation investment. Like third-party insurance, litigation investment is a way to manage the risk associated with litigation while bringing to bear the particular subject matter expertise of a risk-neutral institutional actor. Insurance companies and litigation investors may be systematically in a better position to reduce the risk of litigation, either through risk pooling or information-cost advantages. …

Lexis Nexus Complexus: Comparative Contract Law And International Accounting Collide In The Iasb-Fasb Revenue Recognition Exposure Draft, Kurt S. Schulzke, Gerlinde Berger-Walliser, Pier L. Marchini

Vanderbilt Journal of Transnational Law

U.S. and international accounting-standard setters plan to launch a new, global revenue accounting standard, Revenue from Contracts with Customers, in 2013. Poised at the nexus of comparative contract law and international accounting, the proposal's contract-based revenue recognition model creates new legal risks and opportunities for accountants, lawyers, clients, and financial statement users. Despite its focus on legally enforceable contracts, the proposed standard was drafted without input from the legal community. This Article models the proposal's complex contract-analysis process, demonstrating that its revenue outcomes may vary materially because of seemingly minor interjurisdictional differences in law applicable to "open-price" contracts; offers practice …

"Do-Not-Track" As Contract, Joshua A.T. Fairfield

Vanderbilt Journal of Entertainment & Technology Law

Support for enforcement of a do-not-track option in browsers has been gathering steam. Such an option presents a simple method for consumers to protect their privacy. The problem is how to enforce this choice. The Federal Trade Commission (FTC) could enforce a do-not-track option in a consumer browser under its section 5 powers. The FTC, however, currently appears to lack the political will to do so. Moreover, the FTC cannot follow the model of its successful do-not-call list since the majority of Internet service providers (ISPs) assign Internet addresses dynamically--telephone numbers do not change, whereas Internet protocol (IP) addresses may …

Breaching The Mortgage Contract: The Behavioral Economics Of Strategic Default, Tess Wilkinson-Ryan

Vanderbilt Law Review

Underwater homeowners face a quandary: Should they make their monthly payments as promised or walk away and save money? Traditional economic analysis predicts that homeowners will strategically default (voluntarily enter foreclosure) when it is cheaper to do so than to keep paying down the mortgage debt. But this prediction ignores the moral calculus of default, which is arguably much less straightforward. On the one hand, most people have moral qualms about breaching their contracts, even when the financial incentives are clear. On the other hand, the nature of the lender-borrower relationship is changing and mortgage lenders are increasingly perceived as …

Breach Is For Suckers, Tess Wilkinson-Ryan, David A. Hoffman

Vanderbilt Law Review

This Article presents results from three experiments offering evidence that parties see breach of contract as a form of exploitation that makes disappointed promisees into "Suckers." In psychology, being a sucker turns on a three-part definition: betrayal, inequity, and intention. We used web-based questionnaires to test the effect of each of the three factors separately. Our results support the hypothesis that when breach of contract cues an exploitation schema, people become angry, offended, and inclined to retaliate even when retaliation is costly. This theory offers a useful advance because it explains why victims of breach demand more than similarly situated …

The United States Guest Worker Program: The Need For Reform, Elizabeth Johnston

Vanderbilt Journal of Transnational Law

Although often marginalized, guestworkers are an integral part of the United States economy. In 2006 alone, the U.S. government certified visas for 18,736 temporary workers. The program expanded in subsequent years and continues to grow each year. Despite its broad scope, huge impact on the labor force, and the extensive existing legislation regarding it, the guestworker program has permitted most employers of guestworkers to eschew the regulations or find loopholes, resulting in a system that is largely exploitative. Abuse of workers begins in their home countries, intensifies during the period of employment, and often continues even after employment terminates. Workers …

Who Monitors The Monitor? Virtual World Governance And The Failure Of Contract Law Remedies In Virtual Worlds, Hannah Yeefen Lim

Vanderbilt Journal of Entertainment & Technology Law

This Article is a study of the interaction of rules and contractual terms within the context of fraudulent conduct in virtual worlds. It makes two main arguments: first, that virtual world providers cannot generally be trusted to regulate themselves; and second, that contractual remedies alone do not provide players with useful solutions to player disputes. The Article highlights the shortcomings of relying solely on the existing web of contractual documents to resolve the issues and disputes currently experienced in virtual world communities. Starting with the applicability of real-world laws to virtual worlds, this Article examines a case study that demonstrates …

We're Friends, Right? Client List Misappropriation And Online Social Networking In The Workplace, Brian V. Wyk

Vanderbilt Journal of Entertainment & Technology Law

Social networks, such as Facebook, MySpace, and LinkedIn have grown tremendously over the past decade, and today they claim over 200 million users between the three services. A great number of smaller social networks have also appeared, and new services are constantly being created. With the vast growth of social networking has come the use of social networking in business. As businesses have sought to exploit the wealth of information that social network users share over these networks, businesses have encountered the problem of protecting the compilations of information they have produced. The problem became clear in 2008 when a …

Bargaining Power And Background Law, Nancy S. Kim

Vanderbilt Journal of Entertainment & Technology Law

Power in contract law typically refers to the bargaining strength of each contracting party in relation to the other. In assessing the relative bargaining power of each party, courts and commentators often consider factors specific to the parties, such as socio-economic status and education level. In this Essay, I suggest another factor that affects the power of the parties in negotiating or modifying their agreement, one that I refer to as the "background law." The background law is the substantive law that governs the subject matter of the contract. This Essay focuses specifically on the background law of copyrights and …

Student-Athlete Contract Rights In The Aftermath Of "Bloom V. Ncaa", Joel Eckert

Vanderbilt Law Review

Jeremy Bloom is the defending World Champion in moguls skiing, representing the United States in this discipline at both the 2002 and 2006 Winter Olympics. Bloom also played football for the University of Colorado from 2002 to 2003 where he established two Colorado football records. Before enrolling at Colorado in 2002, Bloom had endorsed numerous products and desired to continue doing so throughout his time in college so that he could fund his skiing career.

The National Collegiate Athletics Association ("NCAA") allows student-athletes ("athletes" or "student-athletes") to compete professionally and receive salaries in sports other than those for which they …

Is The Cisg Benefiting Anybody?, Gilles Cuniberti

Vanderbilt Journal of Transnational Law

The Convention on Contracts for International Sale of Goods (CISG) was supposed to increase legal certainty and reduce the transaction costs of international buyers and sellers. This Article argues that none of these goals has been met. A survey of 181 court decisions and arbitral awards applying the CISG shows that the vast majority of international buyers and sellers do not address the issue of the law governing their contracts, irrespective of the value at stake. Although the data is not easy to interpret, it follows that international buyers and sellers are simply not concerned with the legal regime governing …

Renegotiation And Adaptation Of International Investment Contracts, Klaus P. Berger

Vanderbilt Journal of Transnational Law

In modern-day international investment practice, especially in connection with the exploitation of natural resources, Production Sharing Agreements have come to take over the role of the classic concession agreement. Like their predecessors, these contracts are particularly vulnerable to disturbances in the commercial balance agreed to, or assumed by, the parties at the conclusion of the contract. This vulnerability has three primary causes.

First, these are classic examples of long term contracts. In the petroleum industry, the commitment of significant capital for exploration, particularly in development, and the assumption of considerable risk, particularly in exploration, require contracts covering up to and …

The Impact Of Digital Distribution On The Duration Of Recording Contracts, Revella Cook

Vanderbilt Journal of Entertainment & Technology Law

The success of digital distribution depends on various factors that shape today's music industry. Part I will examine the traditional method of releasing an album and its impact on the duration of recording agreements. This section will focus on the recent legislative debate within California and will illuminate problems regarding the duration of a standard recording contract. Part II investigates modern methods of distribution and whether digital distribution is a viable alternative for the retail of music. Part III discusses innovative marketing models that could reduce costs associated with an album's release. Part IV examines barriers that the music industry …

Idea Men Should Be Able To Enforce Their Contractual Rights: Considerations Rejecting Preemption Of Idea-Submission Contract Claims, Celine Michaud, Gregory Tulquois

Vanderbilt Journal of Entertainment & Technology Law

It is a long-standing and general rule that ideas are "free as the air" as Justice Brandeis eloquently stated in the dissent to the seminal case International News Service v. Associated Press.' This axiom of copyright law expresses the idea that copyright does not protect ideas but only protects the expression of ideas in a work. The distinction between unprotected ideas and protected expression is often referred to as the idea-expression dichotomy...

The principle of the idea-expression dichotomy was initially stated in Baker v. Selden, and later cases further articulated this principle, so that it has become one of the …

Renegotiation And Adaptation Clauses In Investment Contracts, Revisited, John Y. Gotanda

Vanderbilt Journal of Transnational Law

Professor Dr. Klaus Berger, in Renegotiation and Adaptation of International Investment Contracts: The Role of Contract Drafters and Arbitrators, proposes that international investment contracts include a clause allowing the parties to renegotiate the terms of their contract if certain events take place.' If they are unable to reach an agreement, Professor Berger advocates that the parties agree to permit an arbitral tribunal to modify the terms of the contract to restore the economic equilibrium assumed by the parties when they concluded the agreement. Although commentators have often championed these clauses, private parties involved in international transactions have included them infrequently. …

Contractual Choice Of Law And The Prudential Foundations Of Appellate Review, David Frisch

Vanderbilt Law Review

Within the past decade, professional organizations interested in making the law better suited to commercial transactions have begun to advocate the proposition that contracting parties should have almost unlimited power to choose the law to govern their relationship. The new choice-of-law framework resulting from these reform efforts will provide parties with an expanded menu of legal regimes from which to choose when drafting their contract and, in turn, will lead to a more frequent use of choice-of-law clauses. Indeed, some have even suggested that omitting such a clause may soon become malpractice for the commercial lawyer. Given both the trend …

Corrective Justice In Contract Law: Is There A Case For Punitive Damages?, Curtis Bridgeman

Vanderbilt Law Review

Twentieth-century American legal theory has been dominated by utilitarian and economic approaches. As a result, scholarly analyses of contract and tort law have focused on the public effects of the resolution of private disputes. But in the last twenty years or so justice has undergone a renaissance as so-called corrective-justice theorists have tried to shift the discussion in private law back to the relationships between individual parties. Tort law has been a particularly fertile ground for corrective-justice theorists, and a lively debate has developed about what the best corrective-justice account of tort law would look like.

By contrast, comparatively little …

Filmmakers Beware: Protecting Profits Through International Licensing Agreements, Harris E. Tulchin

Vanderbilt Journal of Entertainment & Technology Law

The discussion that follows provides a description of the typical license terms and a more in-depth treatment of three areas of primary importance to the agreement: (1) release requirements; (2) licensed rights terms; and (3) payment obligations. The agreement usually begins with a short description of the particular motion picture licensed, the title, and the key creative elements such as its stars, director, writer, and producer. It states the country or territory to which the motion picture is licensed. The agreement will generally provide for an overall term of a number of years from the availability of certain delivery materials, …

The Recording Artist Agreement: Does It Empower Or Enslave, Lynn Morrow

Vanderbilt Journal of Entertainment & Technology Law

In June 2000, Courtney Love, the controversial lead singer of the rock group Hole, lambasts, among other things, record company profits. In an essay entitled "Courtney Love Does the Math," she maintains that a recording artist agreement is itself a form of music piracy. She tells a compelling story about a band and a record company. As a result of a bidding war between the major labels, the band was given what is considered a huge deal-a twenty percent artist royalty and a million dollar advance. Providing a breakdown of how the million dollars was spent, Ms. Love calculates that, …

Guarantying A Hit (Or Miss): Understanding The Completion Guaranty Business In Hollywood, James W. Coupe

Vanderbilt Journal of Entertainment & Technology Law

Titanic was. So was Waterworld. Heck, even The Adventures of Baron Munchausen was. Blockbusters? No. Oscar winners? Wrong again. Yet these three films do share one unfortunate characteristic-- each of these pictures was over budget, drastically in some cases. Although caused by different forces and cured by different individuals, each film eventually forced someone to pay a great deal of money unexpectedly. Like many unforeseen expenses, these too can be insured against. Enter stage right, a completion guaranty company.

Any and all film productions financed by non-producer third parties should have a completion guaranty. In the most fundamental terms, a …

The Sky Is Falling (Or Is It?): International Contracts And The Y2k Problem, Mark B. Baker

Vanderbilt Journal of Transnational Law

Y2K problems at this point in time are reasonably foreseeable due to the amount of attention given the subject. Contracting parties should examine potential Y2K problems arising internally and address them before January 1, 2000. Yet the extent of Y2K problems, be they widespread or solitary occurrences, remains unforeseeable and unpredictable. Even those parties having adequately addressed internal Y2K problems can experience difficulties due to external parties having failed to become Y2K-compliant. This "second tier" of unforeseeability supports the use of excused performance, but the "first tier" foreseeability that Y2K problems potentially exist prevent viable use of the defense. In …