Law Commons^™

Re-Examining U.S. Bailouts In The Digital Era: Moral Hazard And Adverse Consequences, Joel Slawotsky

American University Business Law Review

Financial institutional bailouts have become the new normal in recent decades. From the savings and loan crisis, to the sub-prime, to SVB and Signature, the U.S. government and regulators have decided that the failure to protect depositors and investors could lead to bank runs, a destabilized banking sector, and ultimately economic turmoil inflicting tremendous monetary and social costs on citizens. However, the mainstreaming of bailouts has led to moral hazard, i.e., the expectation among all stakeholders including financial institutions, investors, creditors, and regulators, that a government rescue is inevitable. The problem of moral hazard is the creation of incentives to …

The Social Promise Of Hybrid Entities, Frederick M. Spight Jr.

American University Business Law Review

Many Historically Black Colleges and Universities (HBCUs) are struggling to stay afloat. These historic, and historically underfunded, institutions suffer from a chronic shortage of resources, leading to the notable closures of schools, like Concordia College. Some critics question the modern place of the HBCU as a relic of a bygone era. This article argues, however, that HBCUs are worth sustaining and provides the legal tool to do so: the hybrid entity. 

Hybrid entities arose from the social enterprise movement, which sought to harness the power of both nonprofit and for-profit organizations. Operating under the philosophy of “doing well, while doing …

Incentivized Delegation In Corporate Criminal Investigations: State Action, Unconstitutional Conditions, And Fifth Amendment Erosion., Ying Zhou

American University Business Law Review

This Article identifies and critiques “incentivized delegation,” an enforcement regime in which the Department of Justice (DOJ) conditions prosecutorial leniency on corporations’ completion of specified, prosecution-oriented, internal investigations of employee misconduct. While courts readily find state action when the government formally delegates investigative functions, they have not squarely addressed whether corporate investigations undertaken to secure prosecutorial leniency—without explicit governmental direction—should likewise trigger state-action scrutiny. United States v. Coburn illustrates the blind spot: by insisting that state action requires overt governmental direction and control, the decision exposes a fundamental failure to appreciate how the government can embed investigative mandates within the …

Procedural Good Faith In Investment Arbitration—What Is It And What Could It Be?, Meg Kinnear

American University Business Law Review

When I selected the topic of procedural good faith for this lecture, I did not expect it to be as unwieldy as it proved to be. After all, good faith is a fundamental concept for every law student, and it anchors our approach to legal analysis and “thinking like a lawyer.” As counsel, our core belief is that proceedings must be conducted in good faith, and we each have a professional duty to act in good faith in arbitration.

Nonetheless, I am certain that each of you has witnessed conduct during an arbitration—by the opposite party, of course—that struck you …

The Stored Communications Act At 40: Re-Examining Ecs And Rcs In The Age Of Ai, Shanzay Pervaiz

Joint PIJIP/TLS Research Paper Series

Shanzay Pervaiz, Senior Legal Researcher, examines the Stored Communications Act (SCA) almost forty years after its enactment, focusing on how its core definitions of “electronic communication service” (ECS) and “remote computing service” (RCS) play a central role in regulating domestic and global government access to data. The definitions still shape key U.S. authorities such as FISA Section 702, the CLOUD Act, and international instruments governing law enforcement access to data, including the Budapest Convention and the United Nations Convention on Cybercrime. The paper also looks at the legislative history of the SCA, how U.S. courts define ECS and RCS, and …

Reproductive Rights & Absolutist Abortion Bans: Beatriz V. El Salvador & Human Rights Standards In The Inter-American Court Of Human Rights, Jordan Schucker

Human Rights Brief

On December 20, 2024, the Inter-Amer­ican Court of Human Rights (IACtHR) issued its judgment in Beatriz v. El Salvador. The case concerned an impoverished Salvadoran woman, known as Beatriz, who had severe pre-existing conditions impacting her pregnancy, including systemic lupus erythematosus, lupus nephritis, and rheumatoid arthritis. After a first pregnancy,  in 2012 that triggered severe preeclampsia, she became pregnant again in 2013. Ultrasounds showed the fetus was anencephalic, making it incompatible with life outside the uterus.

Dokdo/Takeshima And Maritime Delimitation Between The Republic Of Korea And Japan: A Comment On Icj Dispute Resolution, Katherine Angell

Celebrating WCL Student Authors

The Republic of Korea (Korea) should agree to submit the issue of sovereignty over Dokdo/Takeshima and the issue of maritime delimitation in the East Sea/Sea of Japan to the International Court of Justice (ICJ) because the ICJ is likely to decide that Dokdo/Takeshima is Korean territory and the tensions in the East Sea/Sea of Japan can be resolved to allow further cooperation between the two nations. The ICJ is the primary avenue for peacefully resolving territorial and maritime delimitation disputes between nations, and the ICJ has developed a substantial body of case law analyzing these issues. The ICJ considers various …

Law Student As Client: Applying Client-Centered Lawyering Skills To Law Student Development, Rachel Johnson

Newsletters & Other Publications

In this article I demonstrate how I’ve brought my client advising skills into my work with law students. My work with law students is informed by my use of the client-centered lawyering model as adapted from my practice background. I will address how the skills of client-centered lawyering model translate remarkably well advising law students through what I call the law student-centered development model. This model of working with law students helps advisors train the next generation of lawyers in key lawyering skills through the modeling of those skills.

The Elusive Nexus Standard: Differing Approaches To The Asylum Nexus Standard As Applied To Religious Persecution Perpetrated By Gangs, Chloe Schalit

American University Journal of Gender, Social Policy & the Law

In 2015, Ms. Odalis Mireida Chicas-Machado, the secretary of an evangelical church in El Salvador, started getting harassed by members of the MS-13 gang during her walks to and from the church. Chicas-Machado believed that the harassment began because the gang considered her to be an enemy due to her work spreading the message of God to young people who otherwise might have joined the gang. Approximately one year after the harassment commenced, gang members threatened Chicas-Machado with death if she refused to alert the gang when police cars drove by a local store. The gang sought out Chicas-Machado for …

Beyond Bathrooms: The Far-Reaching Consequences Of Denying Gender Identity In Adams V. School Board Of St. Johns County, Jeffrey Sun, Regina Umpstead Pratel

American University Journal of Gender, Social Policy & the Law

INTRODUCTION: The transgender community continues to face discrimination in United States society, and legal protections are unlikely to change anytime soon. Understanding the broader context of these challenges helps explain why some instances of discrimination in public schools may be overlooked or even supported by public officials. An examination of recent judicial rulings concerning transgender students’ access to restrooms corresponding with their gender identity—situated within the broader convergence of national legal and social developments—provides critical insight into the structural barriers faced by transgender students within the educational system and transgender individuals in society at large. Significantly, the growing visibility of …

Campbell At 30: A Retrospective Appreciation, Michael W. Carroll, Peter Jaszi

Scholarly Articles in Law Reviews & Journals

This Article traces the intellectual history of copyright law’s fair use doctrine at the Supreme Court from its first encounter with fair use to its landmark decision slightly more than three decades ago in Campbell v. Acuff-Rose Music, Inc. Campbell provided courts with a coherent, user-centered theory for applying the four statutory fair use factors provided under 17 U.S.C. § 107, a standard the Court recently ratified in Google LLC v. Oracle Am., Inc. and Andy Warhol Foundation for the Visual Arts v. Goldsmith. As one of three related articles, this Article advances two principal claims to contribute to …

Corporate Cybersecurity Governance: Director Liability Under Europe’S Nis2 Directive And The Emerging Fiduciary Duty Of Proactive Cybersecurity Oversight, Stacey B. Barrack

American University Business Law Review

This Comment examines the implications of the European Union’s Network and Information Security 2 Directive (“NIS2”) on corporate cybersecurity governance, with a particular focus on the fiduciary duties of directors in multinational corporations operating in the United States. The NIS2 Directive, adopted in 2023 and currently being transposed into national law by EU member states, mandates that boards of directors must directly approve and oversee—and can be liable for—the cybersecurity risk management measures taken by their companies. 

This Comment delves into the intersection of NIS2 with Delaware corporate law and examines how NIS2 influences the fiduciary duty of oversight for …

The Future Of Monetary Federalism: Rethinking Supremacy In The Stablecoin Era, Richard H. Fair

American University Business Law Review

[INTRODUCTION] In the summer of 2023, the State of Wyoming enacted a law authorizing its state treasurer to issue a blockchain-based, state-backed digital stablecoin known as the Wyoming Stable Token (“WYST”). Two years later, Congress passed the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act, GENIUS, or the Act), moving to establish a comprehensive federal regulatory regime for stablecoins. These dueling initiatives have sparked more than regulatory confusion; they have set the stage for a structural clash between state financial innovation and federal monetary supremacy. At the heart of this confrontation lies a question that the Constitution …

Can Corporations Be Trusted? Voluntary Compliance And The Limits Of Non-Coercive Business Regulation, Yuval Feldman

American University Business Law Review

This Article extends the voluntary compliance framework developed in Can the Public Be Trusted? The Promise and Perils of Voluntary Compliance, to the corporate context. While recent scholarship has explored when states can rely on non-coercive regulatory approaches with individual citizens, comparatively little attention has been paid to whether these insights translate to business entities. This Article argues that corporations present both greater challenges and greater opportunities for voluntary compliance regimes. On one hand, the instrumental orientation of corporate decision-making, amplified by fiduciary duties and competitive pressures, may systematically undermine the intrinsic motivations that voluntary compliance frameworks depend upon. Drawing …

A Proposed Tort To Address The Negligent Enablement Of Cloud Data Breaches, Michael L. Rustad

American University Business Law Review

[INTRODUCTION] The term “cloud computing” means the remote storage of software applications, tools, and data accessed through the internet. Cloud customers enter into subscription agreements with providers who give 24/7, on-demand, as-needed access to software, storage, and networking services owned and managed by providers through a web browser. “Many businesses are transitioning to the cloud for data storage, remote work, and collaboration.” Cloud providers operate their software as a software-as-a-service (“SaaS”) model, under which customers pay a subscription fee to access the software. Netflix and Amazon Prime Video are examples of subscription services that deliver television programs and videos through …

Preserving Platform Innovation With A Narrow Exception: Section 230(C)(1) Immunity For Algorithmic Recommendations, John "Jack" Di Masi

American University Business Law Review

This Comment examines Section 230(c)(1)’s immunity for online platforms that use machine-learning algorithms to recommend third party content and proposes a narrow exception for truly “bad-actor” cases. It reviews Section 230’s text, as well as its early cases, showing that Congress intended broad protection for editorial functions such as content organization. It then traces how recommendation algorithms evolved and how courts treat algorithmic sorting as a neutral tool. This Comment addresses conflicting interpretations and defends broad immunity for routine curation. This Comment argues that immunity should be stripped only after a balancing test under a three-factor “bad-actor” framework—one that evaluates …

The Growing Divide: The Video Privacy Protection Act’S Inconsistent Subscriber Standard And The Need For Reform, Andrea Pacheco

American University Business Law Review

The Video Privacy Protection Act of 1988 (“VPPA”) has been brought into the twenty-first century due to a series of class action lawsuits surrounding consumer privacy rights in an increasingly digital world. A circuit split has emerged among the federal appellate courts on the meaning of the word “subscriber” under the VPPA and whether the statute’s protections should extend to casual users of goods and services provided by videotape service providers. The outcome of this debate carries significant implications for consumer privacy and business compliance obligations due to the escalation of business practices involving the collection of consumer data and …

Blame It On The Algorithm (But Sue Them Both): Joint Enterprise And Agency In Ai-Driven Hiring Discrimination, Khushi Palan

American University Business Law Review

The proliferation of artificial intelligence (AI) in hiring processes has created a significant accountability gap in employment discrimination law. While federal statutes like Title VII of the Civil Rights Act, the Americans with Disabilities Act, and the Age Discrimination in Employment Act focus on finding liability for traditional employers, they fail to adequately address the unique role of third-party AI vendors whose algorithms often drive discriminatory outcomes. This Comment examines the emerging legal landscape through the lens of Mobley v. Workday, where the District Court for the Northern District of California recognized that AI vendors can function as “agents” of …

Public Facing, Privately Shielded: The Employment Gap Created By Title Vii’S Private Club Exemption, Ansley Salmon

American University Business Law Review

Title VII of the Civil Rights Act of 1964 prohibits employment discrimination by employers but exempts “bona fide private membership clubs” that are tax-exempt under Internal Revenue Code Section 501(c). Despite this seemingly clear statutory language, there is a notable lack of appellate decisions interpreting this exemption under Title VII. This scarcity of precedent has led to inconsistent approaches across circuits. For example, the Fifth Circuit has drawn heavily from the Private Club Exemption under Title II of the Civil Rights Act while the Seventh Circuit has treated the two exemptions as entirely distinct. This Comment argues that the Title …

This Land Is Our Land: Creating Abortion Safe-Havens In Federal Enclaves Using The Nondelegation Doctrine, Callie Fucarino

American University Journal of Gender, Social Policy & the Law

In a post-Dobbs world, the legal status of abortion care is in the hands of the states. Healthcare providers and people seeking abortion care must either take legal risks or betray their morals and oath to care for their patients to follow the law in certain restrictive states. What remains in flux is the status of abortion rights on federal lands. There is currently no federal law that criminalizes abortion, but many states prohibit it. Within some states that have restricted abortion, there lie federal enclaves—certain specified land that the United States government owns, where federal law controls. At first …

Fundamental Rights Betrayed: How Pregnancy Exclusions In Advance Directive Statutes Silence Pregnant People’S Wishes, Molly Hill

American University Journal of Gender, Social Policy & the Law

INTRODUCTION: In 2013, Marlise Muñoz collapsed at her home and was rushed to the hospital, where the doctors informed her family that she had suffered a pulmonary embolism and was now brain-dead. Marlise had previously expressed to her family that she never wished to be kept on life support if she was left brain-dead, so her family wanted to honor her wishes. However, despite her irreversible brain death, because Marlise was fourteen weeks pregnant, Texas law required that her body remain on life-sustaining treatment until her fetus became viable. Her body lay in the hospital hooked up to machines against …

No Exception For Ultra Vires Discrimination, Rev. James Deboer

American University Journal of Gender, Social Policy & the Law

The Ministerial Exception (“the Exception”) is an affirmative defense that religious institutions may use to obtain dismissal of discrimination claims brought by current and former ministerial employees.The Exception rests on the seemingly straightforward premise that churches and other religious institutions must be free to select and remove their own ministers without interference from secular laws.  It applies with equal force to any kind of discrimination; extends to harassment and retaliation; and is not confined to forms of alleged discrimination motivated by religious belief.

The Supreme Court has only addressed the Exception twice. First, in 2012, through Hosanna-Tabor Evangelical Lutheran Church …

The Ambiguity That Isn’T: Why Same-Sex Marriage Is Legal In American Samoa, Dante Cade Harootunian, Sammi Lawrence

American University Journal of Gender, Social Policy & the Law

After the U.S. Supreme Court ruled in Obergefell v. Hodges that prohibitions on same-sex marriage violate the equal protection guarantees of the U.S. Constitution, several government officials in American Samoa issued statements claiming that the decision had no effect in American Samoa, and, to date, no same-sex couples have

applied for a marriage license in the territory. This Article analyzes the Obergefell decision in light of other federal and territorial court decisions that determined the applicability of constitutional rights to U.S. territories and concludes that, despite the statements of local officials, the Obergefell decision applies in American Samoa, and the …

Cedaw's General Recommendation No. 37: A Sweeping Reconceptualization Of Women’S Rights In The Climate Crisis And A Tool To Assess State’S Compliance With Them, Ingrid Nifosi-Sutton

American University Journal of Gender, Social Policy & the Law

INTRODUCTION: Climate change is one of the most formidable challenges of our time that threatens our way of life and the very existence of humankind. While climate change has negative impacts on all persons, it affects women and girls disproportionately. During floods and severe storms fueled by climate change, for example, women are more likely to die than men because they lack access to essential information on how to survive in these emergencies. In certain regions of the world—such as Sub-Saharan Africa—women smallholder farmers are bearing the brunt of climate change because, in the aftermath of droughts, these women have …

Why Dobbs Is No Roadmap For Deciding State Constitutional Abortion Issues, Daniel A. Small

American University Journal of Gender, Social Policy & the Law

In deciding that Fourteenth Amendment “liberty” does not protect a woman’s decision to end her pregnancy, Dobbs v. Jackson Women’s Health Organization sought to distinguish the precedent that Roe and Casey relied on to recognize an abortion right. The Dobbs majority claimed that this precedent did not support a right to abortion because, in its view, destroying a fetus is more immoral than the conduct at issue in those earlier cases. However, moral concerns about fetal destruction shed no light on the nature or characteristics of a woman’s liberty interest in an abortion decision. These concerns, therefore, cannot show whether …

What Is “The Nation’S History And Tradition?”: Using History To Redefine “Liberty” And Applying A New Deeply Rooted Test To Transgender Rights, Kaori Kawaguchi

American University Journal of Gender, Social Policy & the Law

INTRODUCTION: “In a Constitution for a free people, there can be no doubt that the meaning of ‘liberty’ must be broad indeed.” In Roe v. Wade, the Court considered a woman’s liberty right to decide whether to continue a pregnancy or have an abortion and recognized the constitutional validity of a liberty right to abortion as part of the right to privacy. In Roe, the Court concluded, “[o]nly personal rights that can be deemed ‘fundamental’ or ‘implicit in the concept of ordered liberty’ are included in the guarantee of a right of personal privacy.” Liberty should be “left to …

Extending Appellate Immigration Jurisdiction: Providing Additional Pathways Of Review For Discretionary Determinations Regarding Extraordinary Circumstances For Victims Of Spousal Abuse, Ayashah Anwar

American University Journal of Gender, Social Policy & the Law

INTRODUCTION: Lucila Magana-Magana lived a life marked by tragedy. At the age of fifteen, Lucila was sexually assaulted and became pregnant. As a young pregnant woman with no ability to leave, Lucila was forced to live with her assailant and had more children with him until his death. After several years on her own, she entered another relationship with her work supervisor, Rafael Camacho, but that relationship soon turned abusive. Camacho became addicted to drugs and alcohol, and eventually Lucila was forced to escape the relationship. Out of fear, Lucila fled Mexico to the United States. Once again, Lucila found …

Nonviolent Felony Offenders And The Second Amendment: Reexamining Categorical Disarmament Laws In Light Of Bruen And Rahimi, Nikolay Belardi

American University Journal of Gender, Social Policy & the Law

INTRODUCTION: The Second Amendment ensures that “the right of the people to keep and bear Arms, shall not be infringed.” In a country with more civilian-owned firearms than people—and more gun dealers than McDonald’s, Burger King, Subway, and Wendy’s locations combined—it is no surprise that Americans pride themselves on their right to bear arms. However, a majority of the American population favors stricter gun laws and regulations, a position that seems sensible given that mass shootings are an all-too-familiar occurrence in the United States. The enshrinement of the right to bear arms in the Constitution limits the laws and regulations …

Black Labor Matters, Michael Z. Green

American University Law Review

Black and organized workers increasingly find themselves threatened by two key outside forces: one seeking to stop anti-racism efforts via diversity, equity, and inclusion (DEI) practices and the other curtailing employees’ union organizing. This Article argues that a response must be grounded in uniquely local strategies by two specific worker coalitions. One coalition—the New Black Workers Movement (NBWM)—arose from Black Lives Matter civil rights protests in 2020 that captivated the workplace and heightened awareness about anti-Blackness and concerns of systemic racism. The other coalition—the New Labor Workers Movement (NLWM)—developed in 2020 as a workplace response to a global pandemic that …

Protecting Pregnancy: From The Pregnancy Discrimination Act To The Pregnant Workers Fairness Act, L. Camille Hébert

American University Law Review

Women have long faced challenges in balancing their employment with childbearing, facing loss of employment opportunities because of their potential for pregnancy and loss of actual employment when they became pregnant. Over the past six decades, Congress and the U.S. Supreme Court have taken actions with the potential to provide equal employment opportunity for women affected by pregnancy, but those efforts have largely failed because of the actions of lower federal courts in interpreting legislation and the Court’s decisions in ways to reduce protection for pregnancy. The most recent congressional action to protect pregnancy, the Pregnant Workers Fairness Act, was …