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Articles 1 - 11 of 11

Full-Text Articles in Law

Rewarding Outside Directors, Assaf Hamdani, Reinier Kraakman Jun 2007

Rewarding Outside Directors, Assaf Hamdani, Reinier Kraakman

Michigan Law Review

While they often rely on the threat of penalties to produce deterrence, legal systems rarely use the promise of rewards. In this Article, we consider the use of rewards to motivate director vigilance. Measures to enhance director liability are commonly perceived to be too costly. We, however demonstrate that properly designed reward regimes could match the behavioral incentives offered by negligence-based liability regimes but with significantly lower costs. We further argue that the market itself cannot implement such a regime in the form of equity compensation for directors. We conclude by providing preliminary sketches of two alternative reward regimes. While ...


Getting The Word Out About Fraud: A Theoretical Analysis Of Whistleblowing And Insider Trading, Jonathan Macey Jun 2007

Getting The Word Out About Fraud: A Theoretical Analysis Of Whistleblowing And Insider Trading, Jonathan Macey

Michigan Law Review

The purpose of this Article is to show that corporate whistleblowing is not analytically or functionally distinguishable from insider trading when such trading is based on "whistleblower information," that is, the information a whistleblower might disclose to the authorities. In certain contexts, both insider trading and whistleblowing, if incentivized, would reduce the incidence of corporate pathologies such as fraud and corruption. In light of this analysis, it is peculiar that whistleblowing is encouraged and protected, while insider trading on whistleblower information is not only discouraged but criminalized. Often, insider trading will be far more effective than whistleblowing at bringing fraud ...


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 ...


The Corporate Monitor: The New Corporate Czar?, Vikramaditya Khanna, Timothy L. Dickinson Jun 2007

The Corporate Monitor: The New Corporate Czar?, Vikramaditya Khanna, Timothy L. Dickinson

Michigan Law Review

Following the recent spate of corporate scandals, government enforcement authorities have increasingly relied upon corporate monitors to help ensure law compliance and reduce the number of future violations. These monitors also permit enforcement authorities, such as the Securities & Exchange Commission and others, to leverage their enforcement resources in overseeing corporate behavior. However there are few descriptive or normative analyses of the role and scope of corporate monitors. This paper provides such an analysis. After sketching out the historical development of corporate monitors, the paper examines the most common features of the current set of monitor appointments supplemented by interviews with ...


Classic Revisited: Penal Theory In Paradise Lost, Jillisa Brittan, Richard A. Posner Apr 2007

Classic Revisited: Penal Theory In Paradise Lost, Jillisa Brittan, Richard A. Posner

Michigan Law Review

Milton's great poem can be enjoyed as a supernatural adventure story in the epic tradition-indeed almost as a science-fiction fantasy. An incredibly powerful supernatural figure-call him Father-lives on planet Heaven somewhere in outer space, surrounded by lesser supernatural beings, called Angels. Father begets Son asexually, and declares his intent to give him vice regal authority. Infuriated at Son's being promoted over him, the foremost Angel, L leads a third of the Angels in violent rebellion against Father and Son. At first it seems the rebels will best the loyal Angels. But Father sends in Son to defeat the ...


A Virtuous State Would Not Assign Correctional Housing Based On Ability To Pay, Bradley W. Moore Jan 2007

A Virtuous State Would Not Assign Correctional Housing Based On Ability To Pay, Bradley W. Moore

Michigan Law Review First Impressions

Pay-to-stay jails expose the moral tension between the dominant theories of punishment: retributivism and deterrence. A turn to a third major moral theory—virtue ethics—resolves this tension. According to virtue ethics, the moral worth of an action follows from both the character of the action and the disposition of the actor. Virtuous acts promote human flourishing— the central goal of life—when they are the right actions performed for the right reasons. The virtue ethics theory of punishment suggests that pay-to-stay jails conflict with the promotion of human flourishing. A virtuous state’s criminal justice system would not include ...


Pay-To-Stay In California Jails And The Value Of Systemic Self-Embarassment, Robert Weisberg Jan 2007

Pay-To-Stay In California Jails And The Value Of Systemic Self-Embarassment, Robert Weisberg

Michigan Law Review First Impressions

The website of the Santa Ana, California-version of Pay-to-Stay uses hotelier-type verbiage in describing features of its alternative jail program. It tells us that the jail “is pleased to host a full range of alternatives to traditional incarceration”; it reassures prospective “clients” seeking flexible work/jail schedules (“Work on Saturday or Sunday? No problem, your weekend days are our weekend days.”); it guarantees “24-hour on-site medical staff”; it accommodates inmates near and far (“We have helped clients with sentences from other counties as well as other states.”); and it generally brags that the jail “is the most modern and comfortable ...


Government Entrepreneurship: How Cop, Direct Supervision, And A Business Plan Helped To Solve Santa Ana's Crime Problems, Paul M. Walters, Russell Davis Jan 2007

Government Entrepreneurship: How Cop, Direct Supervision, And A Business Plan Helped To Solve Santa Ana's Crime Problems, Paul M. Walters, Russell Davis

Michigan Law Review First Impressions

Much has been written about Community Oriented Policing for police agencies and about the Direct Supervision concept for jail operations. Each strategy is at the cutting edge of its respective discipline. This Commentary describes how the progressive City of Santa Ana implemented both strategies— along with a visionary business plan to operate its jail at minimal cost—to combat crime successfully. The City’s business plan relies on entrepreneurship that is too often lacking in government programs. This approach has led to a number of innovations in law enforcement, corrections, and government service. Pay-to-Stay programs provide yet another example of ...


What's International Law Got To Do With It? Transnational Law And The Intelligence Mission, James E. Baker Jan 2007

What's International Law Got To Do With It? Transnational Law And The Intelligence Mission, James E. Baker

Michigan Journal of International Law

This Article describes a continuum of contemporary threats to U.S. national security, with a focus on nonstate terrorism. Part III addresses the role of intelligence and national security law, and in particular law addressed to process, in combating these threats. Good process advances the liberty and safety interests embodied in the concept of national security. Good process improves the quality of decision. It also enhances accountability, which in turn improves decision. Where good process is defined in law to include executive directive, it is better insulated from the immediate imperatives of secrecy and speed.


Towards A Right To Privacy In Transnational Intelligence Networks, Francesca Bignami Jan 2007

Towards A Right To Privacy In Transnational Intelligence Networks, Francesca Bignami

Michigan Journal of International Law

Privacy is one of the most critical liberal rights to come under pressure from transnational intelligence gathering. This Article explores the many ways in which transnational intelligence networks intrude upon privacy and considers some of the possible forms of legal redress. Part II lays bare the different types of transnational intelligence networks that exist today. Part III begins the analysis of the privacy problem by examining the national level, where, over the past forty years, a legal framework has been developed to promote the right to privacy in domestic intelligence gathering. Part IV turns to the privacy problem transnationally, when ...


Counterintuitive: Intelligence Operations And International Law, Glenn Sulmasy, John Yoo Jan 2007

Counterintuitive: Intelligence Operations And International Law, Glenn Sulmasy, John Yoo

Michigan Journal of International Law

The question before us is whether international law is useful or required to govern the covert intelligence-gathering activities of nation-states during peacetime. The very notion that international law is currently capable of regulating intelligence gathering is dubious. In fact, we suggest that international regulation of intelligence operations could have the perverse effect of making international conflict more, rather than less, likely. Certainly, there is legitimate space for coordination and cooperation between states in sharing intelligence, but such "sharing" does not involve significant needs for universal regulation by international law. Simply stated, it is not in the interests of nation-states or ...