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University of Michigan Law School

2007

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Articles 1 - 30 of 114

Full-Text Articles in Law

Vol. 58, No. 7, December 4, 2007, University Of Michigan Law School Dec 2007

Vol. 58, No. 7, December 4, 2007, University Of Michigan Law School

Res Gestae

•Christopher Jeffries Speaks at Law School •Internet Policy Perishes •Same-Sex Benefits On Trial •Brown Bag Lunches •Stress Busters •Exam Tips •Pre- Mr. Wolverine


How To Repair Unconscionable Contracts, Omri Ben-Shahar Dec 2007

How To Repair Unconscionable Contracts, Omri Ben-Shahar

Law & Economics Working Papers Archive: 2003-2009

Several doctrines of contract law allow courts to strike down excessively one-sided terms. A large literature explored which terms should be viewed as excessive, but a related question is often ignored—what provision should replace the vacated excessive term? This paper begins by suggesting that there are three competing criteria for a replacement provision: (1) the most reasonable term; (2) a punitive term, strongly unfavorable to the overreaching party; and (3) the maximally tolerable term. The paper explores in depth the third criterion—the maximally tolerable term—under which the excessive term is reduced merely to the highest level that ...


Paying To Save: Tax Withholding And Asset Allocation Among Low- And Moderate-Income Taxpayers, Michael S. Barr, Jane Dokko Nov 2007

Paying To Save: Tax Withholding And Asset Allocation Among Low- And Moderate-Income Taxpayers, Michael S. Barr, Jane Dokko

Law & Economics Working Papers Archive: 2003-2009

We analyze the phenomenon that low- and moderate-income (LMI) tax filers exhibit a “preference for over-withholding” their taxes, a measure we derive from a unique set of questions administered in a dataset of 1,003 households, which we collected through the Survey Research Center at the University of Michigan. We argue that the relationship between their withholding preference and portfolio allocation across liquid and illiquid assets is consistent with models with present-biased preferences, and that individuals exhibit self-control problems when making their consumption and saving decisions. Our results support a model in which individuals use commitment devices to constrain their ...


Vol. 58, No. 6, November 13, 2007, University Of Michigan Law School Nov 2007

Vol. 58, No. 6, November 13, 2007, University Of Michigan Law School

Res Gestae

•Right to Die Debated at MLR Symposium •Subprime Mortgages •Pornographic Spam Alert •SFF Poker Tournament Pictures •Crossword Puzzle


The Investor Compensation Fund, Alicia Davis Evans Nov 2007

The Investor Compensation Fund, Alicia Davis Evans

Law & Economics Working Papers Archive: 2003-2009

The prevailing view among securities regulation scholars is that compensating victims of secondary market securities fraud is inefficient. As the theory goes, diversified investors are as likely to be on the gaining side of a transaction tainted by fraud as the losing side. Therefore, such investors should have no expected net losses from fraud because their expected losses will be matched by expected gains. This Article argues that this view is flawed; even diversified investors can suffer substantial losses from fraud, presenting a compelling case for compensation.

The interest in compensation, however, should be advanced by better means than are ...


Private Regulation Of Insider Trading In The Shadow Of Lax Public Enforcement (And A Strong Neighbor): Evidence From Canadian Firms, Anita I. Anand, Laura N. Beny Nov 2007

Private Regulation Of Insider Trading In The Shadow Of Lax Public Enforcement (And A Strong Neighbor): Evidence From Canadian Firms, Anita I. Anand, Laura N. Beny

Law & Economics Working Papers Archive: 2003-2009

Few studies have examined firms’ voluntary self-regulation of insider trading. In this article, we investigate the characteristics of Canadian firms that voluntarily adopt policies restricting trading by their insiders when they are already subject to insider trading laws. We hypothesize that certain firm-specific characteristics -- such as larger size, higher market-to-book ratio, greater firm-specific uncertainty, the presence of controlling shareholders, and cross-listing into the United States where insider trading laws are more vigorously enforced -- are positively related to a firm's propensity to adopt an insider trading policy (ITP), because insider trading is likely to be more costly for firms with ...


Genes As Tags: The Tax Implications Of Widely Available Genetic Information, Kyle D. Logue, Joel B. Slemrod Nov 2007

Genes As Tags: The Tax Implications Of Widely Available Genetic Information, Kyle D. Logue, Joel B. Slemrod

Law & Economics Working Papers Archive: 2003-2009

This paper examines how progress in genetics' specifically, the proliferation of knowledge about the human genome' may influence the feasibility and desirability of a tax that is based on individual human endowments or ability. The paper explores various forms that such a genetic endowment tax-and-transfer regime might take and identifies some of the benefits and costs of such a regime. The authors take no position on whether a genetic endowment tax would be desirable or not. However, one contribution of the paper is to observe that current law in the U.S., which restricts the use of genetic information by ...


Vol. 58, No. 5, October 30, 2007, University Of Michigan Law School Oct 2007

Vol. 58, No. 5, October 30, 2007, University Of Michigan Law School

Res Gestae

•Laptops Headed Back Out? •Bleu Copas •Legal Relationships •Motorcycle Mama •Sex Offenders •Prof. Litman Chat •Halloween Party Pix


Vol. 58, No. 4, October 9, 2007, University Of Michigan Law School Oct 2007

Vol. 58, No. 4, October 9, 2007, University Of Michigan Law School

Res Gestae

•Reading Room to Close for Renovations •The Law of Sex Toys •Job Search 911 •Best of Ann Arbor •Halloween Preview •Crossword Puzzle •Nannes 3L Challenge


Clinic Times, University Of Michigan Law School Oct 2007

Clinic Times, University Of Michigan Law School

Newsletters

Fall 2007 issue of the University of Michigan Law School Clinics' newsletter.


Do Investors In Controlled Firms Value Insider Trading Laws? International Evidence, Laura N. Beny Oct 2007

Do Investors In Controlled Firms Value Insider Trading Laws? International Evidence, Laura N. Beny

Law & Economics Working Papers Archive: 2003-2009

This article characterizes insider trading in controlled firms as an agency problem. Using a standard agency model of corporate value diversion through insider trading by a controlling shareholder, I derive testable hypotheses about the relationship between corporate value and insider trading laws. The article tests these hypotheses using cross-sectional data on firms from a group of developed countries. The results show that stringent insider trading laws and enforcement are associated with greater corporate valuation among firms in common law countries, a result that is consistent with the claim that insider trading laws can mitigate agency costs. In contrast, insider trading ...


Vol. 58, No. 3, September 25, 2007, University Of Michigan Law School Sep 2007

Vol. 58, No. 3, September 25, 2007, University Of Michigan Law School

Res Gestae

•Rear Admiral Houck '85 Speaks at Law School •Don't be a Slave to the Curve •Elections to be Held for LSSS 1L Reps and Junior Board of Governors Rep •An Open Letter from BLSA •Six Tips to Contributing to a Cleaner Environment •Environmental Law at UM •Save Yourself •The Grade Curves •Bar Night Pics •Between the Briefs •Primus Enters The Pantheon


Vol. 58, No. 2, September 11, 2007, University Of Michigan Law School Sep 2007

Vol. 58, No. 2, September 11, 2007, University Of Michigan Law School

Res Gestae

•Student Groups Struggle to Find Space in the Law Quad •Too Law Open? •LSSS Presidential Welcome •Meet the Class of '10 •Prof. Primus' Bid for Immortality •Perspective •Crossword Puzzle


The Rise And Fall Of Arm's Length: A Study In The Evolution Of U.S. International Taxation, Reuven S. Avi-Yonah Sep 2007

The Rise And Fall Of Arm's Length: A Study In The Evolution Of U.S. International Taxation, Reuven S. Avi-Yonah

Law & Economics Working Papers Archive: 2003-2009

A revised and updated version of the 1995 article (Va. Tax Review) on the evolution of US transfer pricing rules.


Business Income (Article 7 Oecd Mc), Reuven S. Avi-Yonah, Kimberly A. Clausing Sep 2007

Business Income (Article 7 Oecd Mc), Reuven S. Avi-Yonah, Kimberly A. Clausing

Law & Economics Working Papers Archive: 2003-2009

The 2006 OECD Report on attribution of profits to permanent establishments states that its recommendation “was not constrained by either the original intent or by the historical practice and interpretation of Article 7.” Moreover, the Report recommends a redrafting of both the Article itself and the Commentary. Given this, it seems appropriate to begin by asking: If we were working on a clean slate, what would be the best way to tax MNEs at source in the light of 21st century business practices?

The beginning point has to be that a modern MNE does not operate as if its constituent ...


Vol. 58, No. 1, August 27, 2007, University Of Michigan Law School Aug 2007

Vol. 58, No. 1, August 27, 2007, University Of Michigan Law School

Res Gestae

•Nuggets of Wisdom from OCIs Past •How to Succeed at OCI Without Really Trying •Learn How to Find a Firm Job and Be Happy •Prof. Schneider on OCI and Your Future as a Lawyer •Expert Advice •Questions Imponderable and Strange •No Other Warranties, Expressed or Implied •10 Things Not to Do as a Summer Associate •Crossword •The OCI Drinking Game!


All In The Family As A Single Shareholder Of An S Corporation, Douglas A. Kahn, Jeffrey H. Kahn, Terrence G. Perris Aug 2007

All In The Family As A Single Shareholder Of An S Corporation, Douglas A. Kahn, Jeffrey H. Kahn, Terrence G. Perris

Articles

Subject to a few exceptions, a corporation that has elected to be taxed under subchapter S of chapter 1 of subtitle A of title 26 of the United States tax code is not taxed on its net income. Instead, the income, deductions, credits, and other tax items of an S corporation pass through to its shareholders on a pro rata basis. To qualify for subchapter S treatment, an electing corporation must satisfy the requirements that are set forth in section 1361, one of which is that the corporation can have no more than 100 shareholders. One aspect of that requirement ...


The Prisoners’ (Plea Bargain) Dilemma, Oren Bar-Gill, Omri Ben-Shahar Jul 2007

The Prisoners’ (Plea Bargain) Dilemma, Oren Bar-Gill, Omri Ben-Shahar

Law & Economics Working Papers Archive: 2003-2009

How can a prosecutor, who has only limited resources, credibly threaten so many defendants with costly and risky trials and extract plea bargains involving harsh sentences? Had defendants refused to settle, many of them would not have been charged or would have escaped with lenient sanctions. But such collective stonewalling requires coordination among defendants, which is difficult if not impossible to attain. Moreover, the prosecutor, by strategically timing and targeting her plea offers, can create conflicts of interest among defendants, frustrating any attempt at coordination. The substantial bargaining power of the resource-constrained prosecutor is therefore the product of the collective ...


A Proposal To Adopt Formulary Apportionment For Corporate Income Taxation: The Hamilton Project, Reuven S. Avi-Yonah, Kimberly Clausing Jul 2007

A Proposal To Adopt Formulary Apportionment For Corporate Income Taxation: The Hamilton Project, Reuven S. Avi-Yonah, Kimberly Clausing

Law & Economics Working Papers Archive: 2003-2009

The current system of taxing the income of multinational firms in the United States is flawed across multiple dimensions. The system provides an artificial tax incentive to earn income in low-tax countries, rewards aggressive tax planning, and is not compatible with any common metrics of efficiency. The U.S. system is also notoriously complex; observers are nearly unanimous in lamenting the heavy compliance burdens and the impracticality of coherent enforcement. Further, despite a corporate tax rate one standard deviation above that of other OECD countries, the U.S. corporate tax system raises relatively little revenue, due in part to the ...


What Do Nonprofits Maximize? Hospital Service Provision And Market Ownership Mix, Jill R. Horwitz, Austin Nichols Jul 2007

What Do Nonprofits Maximize? Hospital Service Provision And Market Ownership Mix, Jill R. Horwitz, Austin Nichols

Law & Economics Working Papers Archive: 2003-2009

Conflicting theories of the nonprofit firm have existed for several decades yet empirical research has not resolved these debates, partly because the theories are not easily testable but also because empirical research generally considers organizations in isolation rather than in markets. Here we examine three types of hospitals – nonprofit, for-profit, and government – and their spillover effects. We look at the effect of for-profit ownership share within markets in two ways, on the provision of medical services and on operating margins at the three types of hospitals. We find that nonprofit hospitals’ medical service provision systematically varies by market mix. We ...


The Cash Nexus, Carl E. Schneider Jul 2007

The Cash Nexus, Carl E. Schneider

Articles

Courts and legislatures have labored for decades to protect patients' choice of medical treatments, even though patients seize that gift less eagerly than lawmakers expect. Yet while courts have rushed to build the whited sepulchre of informed consent, they have fled from a related problem that patients actually yearn to solve and that actually can be ameliorated the plight of patients who perforce agree to a treatment before they know its costs and who receive a bill both unrelated to the treatment's value and several times what an insured patient would pay. Increasingly, patients must be consumers in the ...


Optimal Tax Compliance And Penalties When The Law Is Uncertain, Kyle D. Logue Jun 2007

Optimal Tax Compliance And Penalties When The Law Is Uncertain, Kyle D. Logue

Articles

This article examines the optimal level of tax compliance and the optimal penalty for noncompliance in circumstances in which the substance of the tax law is uncertain - that is, when the precise application of the Internal Revenue Code to a particular situation is not clear. In such situations, a number of interesting questions arise. This article will consider two of them. First, as a normative matter, how certain should taxpayers be before they rely on a particular interpretation of a substantively uncertain tax rule? If a particular position is not clearly prohibited but neither is it clearly allowed, what is ...


Vol. 57, No. 12, April 3, 2007, University Of Michigan Law School Apr 2007

Vol. 57, No. 12, April 3, 2007, University Of Michigan Law School

Res Gestae

•Truly Moot? First Round Delays, Lack of Transparency Mar Competition •Law School Facilities •Law School Rock Band •Ask Sandra D. •Interview with Prof. Simpson •Moot Court Finals •The Law Library


Vol. 57, No. Π, April 1, 2007, University Of Michigan Law School Apr 2007

Vol. 57, No. Π, April 1, 2007, University Of Michigan Law School

Res Gestae

•Law School Shocked by Federal Fraud Scam •Administration Considers Possibility that "Law Students are Adults" •Wireless/Alcohol Policies Abolished •Milk & Cookies Unaffected


The Screening Effect Of The Private Securities Litigation Reform Act, Stephen Choi, Karen K. Nelson, Adam C. Pritchard Mar 2007

The Screening Effect Of The Private Securities Litigation Reform Act, Stephen Choi, Karen K. Nelson, Adam C. Pritchard

Law & Economics Working Papers Archive: 2003-2009

Prior research shows that the PSLRA increased the significance of merit-related factors, such as the presence of an accounting restatement or insider selling, in determining the incidence and outcomes of securities fraud class actions. (Johnson, Nelson, and Pritchard, 2007). This result, however, is consistent with two possible hypotheses. First, the PSLRA may have reduced solely the incidence of non-meritorious litigation. Second, the PSLRA may have changed the definition of merit, effectively precluding claims that would have survived and produced a settlement pre-PSLRA. This paper tests these alternative hypotheses. We find that pre-PSLRA claims that settled for nuisance value would be ...


Vol. 57, No. 11, March 20, 2007, University Of Michigan Law School Mar 2007

Vol. 57, No. 11, March 20, 2007, University Of Michigan Law School

Res Gestae

•Exams Face Changes •Moot Court •Ask Sandra D. •Prom Pictures •LSSS Elections •SFF Pictures •Build Green for a Better Law School •Green Eggs and Pizza •ABA Concludes Visit •Guest Op-Ed: Michigan Law Review, How Do I Love Thee? •Crossword


Vol. 57, No. 9, February 20, 2007, University Of Michigan Law School Feb 2007

Vol. 57, No. 9, February 20, 2007, University Of Michigan Law School

Res Gestae

•The Best Kept Secret in Michigan: Curacao •You Are Not Your GPA •New Building Plan Changes Direction •Introducing Miss Sandra D. •March Madness Hits Career Services •Insider Advice and Perspectives •No Other Warranties, Expressed or Implied •Washtenaw County Workers' Center •2nd Annual Juan Luis Tienda Banquet Photos •Grade Curves •You Know Everything About Same-Sex Marriage •Crossword


Vol. 57, No. 8, February 6, 2007, University Of Michigan Law School Feb 2007

Vol. 57, No. 8, February 6, 2007, University Of Michigan Law School

Res Gestae

•Grades: Some Perspectives and Advice •Music Review: The Shins •Secret Crushes •Bar Night Photos •The Senate-Qualifides •Valentines Day Ideas •SFF Poker Night


Can Corporate Governance Reforms Increase Firms' Market Values: Evidence From India, Bernard S. Black, Vikramaditya Khanna Feb 2007

Can Corporate Governance Reforms Increase Firms' Market Values: Evidence From India, Bernard S. Black, Vikramaditya Khanna

Law & Economics Working Papers Archive: 2003-2009

A central problem in studying the valuation effects of corporate governance reforms is that most reforms affect all firms in a country. Thus, if share prices move when governance reforms are announced, the price changes may reflect the reforms, but could also reflect other new information. We address this identification issue by studying India’s adoption in 2000 of major governance reforms (Clause 49), a number of which resemble and predate Sarbanes Oxley. Clause 49 requires, among other things, audit committees, a minimum number of independent directors, and CEO/CFO certification of financial statements and internal controls. The reforms were ...


Vol. 57, No. 7, January 23, 2007, University Of Michigan Law School Jan 2007

Vol. 57, No. 7, January 23, 2007, University Of Michigan Law School

Res Gestae

•Deans Dish: Prop 2 and Mr. Wolverine •Alternatives to Pricey Textbooks •Where are the Sinks? •Upcoming Events •The New 138 Hutchins Hall •Photos from Mr. Wolverine •Mini-Seminar Scoop