Law Commons^™

The Misuse Of Tobin’S Q, Robert Bartlett, Frank Partnoy

Vanderbilt Law Review

In recent years, scholars have addressed the most important topics in corporate law based on a flawed assumption: that the ratio of the market value of a corporation’s securities to their book value is a valid measure of the value of the corporation. The topics have included staggered boards, incorporation in Delaware, shareholder activism, dual-class share structures, share ownership, board diversity, and other significant aspects of corporate governance. We trace the history of this flawed assumption, and document how it emerged from Tobin’s q, a concept from an unrelated area in macroeconomics. We show that scholars have misused Tobin’s q, …

When To Walk Away And When To Risk It All, W. Kip Viscusi, Scott Deangelis --

Vanderbilt Law School Faculty Publications

While one might expect athletes to be strongly averse to extending their career too long when there is a chance of losing everything due to a concussion or a catastrophic injury, experimental subjects consistently played longer than the optimal amount for risk-neutral decisions. A commitment to the length of play in advance, as in the case of long-term contracts, led to a greater chance of staying beyond the expected payoff-maximizing point. If the decision frame is altered so that decisions are made in each period rather than through an upfront commitment, the magnitude of potential losses is more evident.

What Results Should Be Returned From Opportunistic Screening In Translational Research?, Colin M.E. Halverson, Sarah H. Jones, Laurie Novak, Christopher Simpson, Digna R. Velez Edwards, Sifang K. Zhao, Ellen W. Clayton

Vanderbilt Law School Faculty Publications

Increasingly, patients without clinical indications are undergoing genomic tests. The purpose of this study was to assess their appreciation and comprehension of their test results and their clinicians’ reactions. We conducted 675 surveys with participants from the Vanderbilt Electronic Medical Records and Genomics (eMERGE) cohort. We interviewed 36 participants: 19 had received positive results, and 17 were self-identified racial minorities. Eleven clinicians who had patients who had participated in eMERGE were interviewed. A further 21 of these clinicians completed surveys. Participants spontaneously admitted to understanding little or none of the information returned to them from the eMERGE study. However, they …

Patenting New Uses For Old Inventions, Sean B. Seymore

Vanderbilt Law Review

A bedrock principle of patent law is that old inventions cannot be patented. And a new use for an old invention does not render the old invention patentable. This is because patent law requires novelty—an invention must be new. But while a new use for an old invention does not make the old invention patentable, the new use itself might be patentable. In fact, new-use patents comprise a significant part of the patent landscape—particularly in pharmaceuticals, when drug companies obtain new-use patents to repurpose old drugs. This trend has fueled debates over follow-on innovation and patent quality. But there is …

Returning Results In The Genomic Era: Initial Experiences Of The Emerge Network, Ellen W. Clayton, Georgia L. Wiesner, Alanna K. Rahm, Et Al.

Vanderbilt Law School Faculty Publications

A goal of the 3rd phase of the Electronic Medical Records and Genomics (eMERGE3) Network was to examine the return of results (RoR) of actionable variants in more than 100 genes to consenting participants and their healthcare providers. Each of the 10 eMERGE sites developed plans for three essential elements of the RoR process: Disclosure to the participant, notification of the health care provider, and integration of results into the electronic health record (EHR). Procedures and protocols around these three elements were adapted as appropriate to individual site requirements and limitations. Detailed information about the RoR procedures at each site …

Shackling Prejudice: Expanding The Deck V. Missouri Rule To Nonjury Proceedings, Sadie Shourd

Vanderbilt Law Review

Courts in the United States have traditionally held that criminal defendants have the right to be free from unwarranted restraints visible to the jury during the guilt phase of a trial. The term “unwarranted restraints” refers to the use of restraints on a defendant absent a court’s individualized determination that such restraints are justified by an essential state interest. In Deck v. Missouri, the Supreme Court expanded the prohibition against unwarranted restraints to the sentencing phase of a trial. The law regarding the unwarranted shackling of defendants in nonjury proceedings, however, remains unsettled. The U.S. Courts of Appeals for the …

Artistic Justice: How The Executive Branch Can Facilitate Nazi-Looted Art Restitution, Paige Tenkhoff

Vanderbilt Law Review

Eight decades after the Holocaust, many pieces of art stolen from Jewish families still sit in the state-owned museums of former Nazi-aligned regimes. In an effort to right old wrongs, plaintiffs are bringing suit in the United States against the foreign governments who retain the art under the Foreign Sovereign Immunity Act’s expropriation exception, which permits aggrieved plaintiffs to sue foreign countries for property that was illegally taken in violation of international law. But circuit courts are split as to whether these suits against foreign sovereigns should be allowed to go forward. This Note analyzes the divergent interpretations of the …

A Framework For Assessing The Impact Of Private Climate Governance, Michael P. Vandenbergh, Jonathan M. Gilligan

Vanderbilt Law School Faculty Publications

The growing sense of urgency by the public for action to address climate change stands in stark contrast to the slow pace and limited accomplishments of national and international institutions to reduce greenhouse gas emissions. Political institutions face significant structural barriers to taking strong and rapid action to cut emissions, but private environmental governance has potential to avoid those barriers and achieve rapid emissions reductions. It appears unlikely that private governance alone can reduce emissions enough to stabilize the climate, but it does have the potential to reduce emissions sufficiently and quickly enough to buy time for enacting more comprehensive …

Dissecting Revlon: Severing The Standard Of Conduct From The Standard Of Review In Post-Closing Litigation, Katie Clemmons

Vanderbilt Law Review

In Corwin v. KKR Financial Holdings LLC and its progeny, the Delaware courts made clear that a fully informed, uncoerced vote by disinterested stockholders triggers the waste standard. In Corwin, the Delaware Supreme Court also indicated that Revlon was only meant to provide stockholders with an expedited process for obtaining a preliminary injunction before the closing of a transaction. However, more recent cases indicate that Revlon in fact does apply after the closing of a transaction. Unfortunately, the Delaware courts have not been given an opportunity to determine which standard of review should apply at this stage—enhanced scrutiny, waste, or …

Privative Copyright, Shyamkrishna Balganesh

Vanderbilt Law Review

“Privative” copyright claims are infringement actions brought by authors for the unauthorized public dissemination of works that are private, unpublished, and revelatory of the author’s personal identity. Driven by considerations of authorial autonomy, dignity, and personality rather than monetary value, these claims are almost as old as Anglo-American copyright law itself. Yet modern thinking has attempted to undermine their place within copyright law and sought to move them into the domain of privacy law. This Article challenges the dominant view and argues that privative copyright claims form a legitimate part of the copyright landscape. It shows how privative copyright claims …

The Liberal Case Against The Modern Class Action, Martin H. Redish

Vanderbilt Law Review

Those who classify themselves as liberal generally favor widespread use of class actions as a means of policing corporate misbehavior and protecting the individual worker or consumer against capitalist excesses. In this Essay, however, I take the counterintuitive position that while class action practice could conceivably be modified in ways that make it far more acceptable than it currently is, liberal political theory should be very skeptical of the modern class action device as it currently exists. Defining the foundation of liberal thought as a process-based belief in accountable democratic government and respect for the right of individuals to protect …

Golden Parachutes And The Limits Of Shareholder Voting, Albert H. Choi, Andrew C.W. Lund, Robert Schonlau

Vanderbilt Law Review

With the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010, Congress attempted to constrain change-in-control payments (also known as “golden parachutes”) by giving shareholders the right to approve or disapprove such payments on an advisory basis. This Essay is the first to empirically examine the experience with the Say-on-Golden-Parachute (“SOGP”) vote. We find that unlike shareholder votes on proposed mergers, there is a significant amount of variation with respect to votes on golden parachutes. Notwithstanding the variation, however, the SOGP voting regime is likely ineffective in controlling golden parachute (“GP”) compensation. First, proxy advisors seem …

'Rifled Precision': Using E-Discovery Technology To Streamline Books And Records Litigation, Joshua A. Manning

Vanderbilt Journal of Entertainment & Technology Law

In 1993, the Delaware Supreme Court urged stockholders to use the "tools at hand" to flesh out complaints in derivative lawsuits. The plaintiffs' bar got the message. In the years since that proclamation, the Delaware Court of Chancery has seen dramatic increases in so-called Section 220 litigation-stockholders exercising their statutory right to inspect a company 's books and records. As Delaware courts have made it harder for stockholders to challenge merger transactions, this trend has only intensified. Due to increased filings, as well as other structural hurdles, these "summary proceedings" have begun to drag, with many requiring full trials. Because …

The Law Of The Tetrapods, Henry T. Greely

Vanderbilt Journal of Entertainment & Technology Law

Should there be such a thing as "Technology Law"? This Article explores that question in two ways. It first looks at four substantive issues that appear across many different areas of technology law: privacy, security, property, and responsibility. It then examines five questions that frequently recur about how to regulate very different new technologies. These questions include which agency should regulate, whether regulation should focus on before or after marketing, what jurisdiction should regulate, how relevant new information will be gained and used, and how-politically-good regulation can be enacted. This Article concludes that it may make sense to develop a …

The Female Act: Bringing Title Ix Into The Twenty-First Century, Courtney Tibbetts

Vanderbilt Journal of Entertainment & Technology Law

What was once lauded as a progressive champion for women has been decaying in practice. Enacted more than forty-five years ago, Title IX's unforeseen consequences and shortcomings are primarily borne by female collegiate athletes. To comply with Title IX, the majority of college athletic programs follow the proportionality standard, which mandates that male and female participation in athletics must be substantially proportional to universities' overall undergraduate enrollment. Female participation in college athletics has increased to nearly five times the pre-1972 participation rates since the introduction of Title IX. While that progress is admirable, the athletes of today-both male and female-deserve …

Red Card On Wage Discrimination: Us Soccer Pay Disparity Highlights Inadequacy Of The Equal Pay Act, Hannah L.E. Masters

Vanderbilt Journal of Entertainment & Technology Law

In the months leading up to its latest World Cup win, the US Women's National Team sued its parent organization over income inequality in US soccer. Statements from high-profile players, like Megan Rapinoe and Alex Morgan, contributed to a national conversation about the gender pay gap that exists not just in soccer but across many professions. The claims of the Women's Team should make for a perfect Equal Pay Act claim, but all signs point to a loss. Instead, the women are far more likely to succeed on their claim arising under Title VII of the Civil Rights Act, despite …

Where's The Consumer Harm? The Bots Act: A Fruitless Boogeyman Hunt, Zachary Sturman

Vanderbilt Journal of Entertainment & Technology Law

Historically, the secondary-ticket market for sporting events, concerts, and the like entailed hollering scalpers perched outside of venues. Though this practice has not been entirely extinguished, the internet has largely moved the secondary-ticket market online to websites like StubHub, the largest player in this arena. Instead of yelling loudest or finding the best real estate outside a stadium from which to perch, the modern ticket scalper competes most effectively in the secondary-ticket market by finding ways to access primary tickets online. By using ticket "bots," programs designed to autofill customer information and solve CAPTCHA prompts, modern scalpers can quickly purchase …

Chancery Court Denies Rescission Of Merger Agreement Where "Indispensible" Company Stockholders Not Named As Parties To Litigation, Robert S. Reder, Jacob R. Haskins

Vanderbilt Law Review En Banc

No abstract provided.

Negotiating Against Yourself: Flawed Negotiating Process Leads Chancery Court To Deny M&F-Premised Motion To Dismiss, Robert S. Reder, Matthew K. Vallade

Vanderbilt Law Review En Banc

No abstract provided.

Chancery Court Finds Notice To Non-Consenting Stockholders Not A Precondition To An Effective Majority Written Consent, Robert S. Reder, Jacob R. Haskins

Vanderbilt Law Review En Banc

No abstract provided.

Chancery Court Dismisses Breach Of Fiduciary Duty Claims Against Target Company Directors Despite Unavailability Of Corwin Defense, Robert S. Reder, Lorin Hom

Vanderbilt Law Review En Banc

No abstract provided.

Delaware Supreme Court Approves Federal Forum Selection Provision For Securities Act Claims, Robert S. Reder

Vanderbilt Law Review En Banc

No abstract provided.

Aruba Appraisal: Delaware Supreme Court Rejects Chancery Court's Exclusive Reliance On Trading Price In Determining "Fair Value" Under Dgcl Sec. 262, Robert S. Reder, Martin Shepherd

Vanderbilt Law Review En Banc

No abstract provided.

Popular Constitutional Argument, Tom Donnelly

Vanderbilt Law Review

Critics have long attacked popular constitutionalists for offering few clues about how their theory might work in practice—-especially inside the courts. These critics are right. Popular constitutionalism—as a matter of both theory and practice—remains a work in progress. In this Article, I take up the challenge of developing an account of (what I call) popular constitutional argument. Briefly stated, popular constitutional argument is a form of argument that draws on the American people’s considered judgments as a source of constitutional authority—akin to traditional sources like text, history, structure, and doctrine. Turning to constitutional theory, I situate popular constitutional argument within …

Chancery Court Rejects Target Company Claim That Termination Fee Was Jilted Merger Partner's Exclusive Remedy, Robert S. Reder, Alexandra Sasha Gombar

Vanderbilt Law Review En Banc

No abstract provided.

Chancery Court Grants Pleading Stage Dismissal Of Revlon Claims Against Target Company Directors Despite Looming Proxy Contest, Robert S. Reder, Victoria D. Selover

Vanderbilt Law Review En Banc

No abstract provided.

Franchise Participants As Proper Patent Opponents: Walker Process Claims, Robert W. Emerson

Vanderbilt Journal of Entertainment & Technology Law

Franchise parties may be sued for patent infringement, or they may seek to sue others for an antitrust injury as the result of a fraudulently obtained patent. Indeed, franchisors and franchisees may simultaneously fall under both categories-sued for infringement but aggrieved because the very basis of that suit is illegitimate in their eyes. These franchise parties may turn for relief to a patent-validity challenge authorized in the seminal case Walker Process Equipment, Inc. v. Food Machine & Chemical Corp. Franchise participants-franchisees and franchisors alike-may be the ideal Walker Process claimants. When these types of cases occur, the damages within the …

The Effects Of Myriad And Mayo On Molecular-Test Development In The United States And Europe: Interviews From The Frontline, Johnathon Liddicoat, Kathleen Liddell, Mateo Aboy

Vanderbilt Journal of Entertainment & Technology Law

US Supreme Court decisions in Mayo Collaborative Services v. Prometheus Laboratories and Association for Molecular Pathology v. Myriad Genetics Inc. caused US and European law on what is patentable subject matter to diverge significantly. Both cases related to molecular tests and changed decades of patent practice. Whether the decisions adversely affect the development of molecular tests in the United States and Europe has been a matter of much speculation but limited empirical investigation. This interview-based study has three main findings. First, Myriad and Mayo have negatively affected the development of some molecular tests. Notably, half of the US university technology-transfer …

Gmo Corn, Mexico, And Coloniality, Ernesto Hernandez-Lopez

Vanderbilt Journal of Entertainment & Technology Law

Genetically modified ("GMO") corn germinates legal controversies in Mexico. Since 2013, Mexican courts have temporarily suspended GMO corn because it threatens biodiversity. In the Colectividad del Maiz lawsuit, courts have prohibited Mexico from issuing commercial GMO permits while the litigation continues. Companies like Monsanto need these permits to sell GMO seeds. Corn is the most essential food item for millions of Mexicans and is central to Mexican culture. Mexicans wait for Colectividad del Maiz's resolution, siding with biodiversity or GMOs. This Article describes scientific GMO controversies and analyzes biosecurity, class-action, and international environmental law. It argues that this corn fight …

Redefining Lgbtq And Abortion Rights In Latin America: A Transnational Toolkit, Alyssa Julian

Vanderbilt Journal of Transnational Law

Throughout Latin America, the Lesbian, Gay, Bisexual, Trans, and Queer (LGBTQ) and abortion rights movements have progressed at divergent strengths and speeds, with significant variation among countries. The region is home to some of the most restrictive and discriminatory laws when it comes to these contentious issues. This Note explores some of the reasons behind the variation in LGBTQ and abortion rights throughout the region.

This Note traces the economic and political history of Latin America to illustrate the climate in which these social movements are operating. Further, this Note offers a brief snapshot of recent global developments in LGBTQ …