Law Commons^™

The Case For Individual Audit Partner Accountability, Colleen Honigsberg

Vanderbilt Law Review

Despite repeated regulatory interventions, accounting failures continue to persist in companies around the world. In this Article, I explain why regulatory oversight, private enforcement, and firm-level reputational sanctions are unlikely to induce accountants to take optimal levels of care when auditing corporate financials. Instead, our best chance for improving audit quality lies in establishing a market for individual audit partners’ brands—a market that can hold individual auditors responsible for their mistakes.

The Article begins by identifying four key benefits to this approach. First, forcing auditors to be publicly associated with any audit failures occurring on their watch will induce them …

Oversight Failure In Securities Markets, Yesha Yadav

Vanderbilt Law School Faculty Publications

According to statute, securities exchanges play an essential role in ensuring compliance with applicable laws and industry standards. Long imagined as unique in their institutional capacity to bring traders together, collect information and exclude problem participants from the marketplace, exchanges have offered an efficient source of private discipline for public regulators. The classic conception of the exchange, however, no longer holds true in today’s markets. Rather than concentrate activity within a handful of exchanges, equity markets are fragmented across a network of 14 exchanges and around 40 lightly regulated, off-exchange alternative venues (colloquially, “dark pools”).

This Article shows that the …

Mootness Fees, Randall S. Thomas, Matthew D. Cain, Jill E. Fisch, Steven D. Solomon

Vanderbilt Law School Faculty Publications

In response to a sharp increase in litigation challenging mergers, the Delaware Chancery Court issued the 2016 Trulia decision, which substantively reduced the attractiveness of Delaware as a forum for these suits. In this Article, we empirically assess the response of plaintiffs'attorneys to these developments. Specifically, we document a troubling trend-the flight of merger litigation to federal court where these cases are overwhelmingly resolved through voluntary dismissals that provide no benefit to the plaintiff class but generate a payment to plaintiffs'counsel in the form of a mootness fee. In 2018, for example, 77% of deals with litigation were challenged in …

The Enacted Purposes Canon, Kevin M. Stack

Vanderbilt Law School Faculty Publications

This Article argues that the principle relied upon in King v. Burwell that courts "cannot interpret statutes to negate their stated purposes"-the enacted purposes canon-is and should be viewed as a bedrock element of statutory interpretation. The Supreme Court has relied upon this principle for decades, but it has done so in ways that do not call attention to this interpretive choice. As a result, the scope and patterns of the Court's reliance are easy to miss. After reconstructing the Court's practice, this Article defends this principle of interpretation on analytic, normative, and pragmatic grounds. Building on jurisprudence showing that …

Calculating Sec Whistleblower Awards: A Theoretical Approach, Amanda M. Rose

Vanderbilt Law School Faculty Publications

The Dodd-Frank Act provides that SEC whistleblower awards must equal not less than 10 and not more than 30 percent of the monetary penalties collected in the action to which they relate; SEC Rule 21F-6 provides criteria that the SEC may consider in determining the award percentage within the statutory bounds. When applying the Rule 21F-6 criteria, the SEC is required to think only in percentage terms, ignoring the dollar payout the award will actually yield. Last June the SEC proposed to change this, at least in cases where the existing methodology would yield an award less than $2 million …

The Due Process And Other Constitutional Rights Of Foreign States, Ingrid W. Brunk

Vanderbilt Law School Faculty Publications

The rights offoreign states under the US. Constitution are becoming more important as the actions offoreign states andforeign state-owned enterprises expand in scope and the legislative protections to which they are entitled contract. Conventional wisdom and lower court cases hold that foreign states are outside our constitutional order and that they are protected neither by separation ofpowers nor by due process. As a matter ofpolicy, however, it makes little sense to afford litigation-related constitutional protections to foreign corporations and individuals but to deny categorically such protections to foreign states. Careful analysis shows that the conventional wisdom and lower court cases …

Fourth Amendment Textualism, Jeffrey Bellin

Vanderbilt Law School Faculty Publications

The Fourth Amendment's prohibition of "unreasonable searches" is one of the most storied constitutional commands. Yet after decades of Supreme Court jurisprudence, a coherent definition of the term "search" remains surprisingly elusive. Even the justices know they have a problem. Recent opinions only halfheartedly apply the controlling "reasonable expectation of privacy" test and its wildly unpopular cousin, "third-party doctrine," with a few justices in open revolt. These fissures hint at the Court's openness to a new approach. Unfortunately, no viable alternatives appear on the horizon. The justices themselves offer little in the way of a replacement. And scholars' proposals exhibit …

Has The "M" Word Been Framed? Marijuana, Cannabis And Public Opinion, Robert A. Mikos, Cindy D. Kam

Vanderbilt Law School Faculty Publications

Over the past two decades, a growing cadre of US states has legalized the drug commonly known as “marijuana.” But even as more states legalize the drug, proponents of reform have begun to shun the term “marijuana” in favor of the term “cannabis.” Arguing that the “M” word has been tainted and may thus dampen public support for legalization, policy advocates have championed “cannabis” as an alternative and more neutral name for the drug. Importantly, however, no one has tested whether calling the drug “cannabis” as opposed to “marijuana” actually has any effect on public opinion. Using an original survey …

The Supreme Court And Refugees At The Southern Border: 5 Questions Answered, Karla M. Mckanders

Vanderbilt Law School Faculty Publications

I sat in a small room in Tijuana, Mexico with a 13-year-old indigenous Mayan Guatemalan girl.

She left Guatemala after a cartel murdered her friend and threatened to rape her. Her mother wanted her to live and believed the only way for her to survive was to send her daughter alone to the U.S., to apply for asylum Now she was alone and stuck in Mexico. Every morning, the Guatemalan girl, along with other asylum seekers, would frantically gather at the Tijuana-U.S. border where they waited to hear their name or their number called so the Mexican government could escort …

Antitrust In Digital Markets, John M. Newman

Vanderbilt Law Review

Antitrust law has largely failed to address the challenges posed by digital markets. At the turn of the millennium, the antitrust enterprise engaged in intense debate over whether antitrust doctrine, much of it developed during a bygone era of smokestack industries, could or should evolve to address digital markets. Eventually, a consensus emerged: although the basic doctrine is supple enough to apply to new technologies, courts and enforcers should adopt a defendant-friendly, hands-off approach.

But this pro-defendant position is deeply-and dangerously-flawed. Economic theory, empirical research, and extant judicial and regulatory authority all contradict the prevailing views regarding power, conduct, and …

You Get What You Pay For: An Empirical Examination Of The Use Of Mturk In Legal Scholarship, Adriana Z. Robertson, Albert H. Yoon

Vanderbilt Law Review

In recent years, legal scholars have come to rely on Amazon's Mechanical Turk ("MTurk') platform to recruit participants for surveys and experiments. Despite MTurk's popularity, there is no generally accepted methodology for its use in legal scholarship, and many questions remain about the validity of data gathered from this source. In particular, little is known about how the compensation structure affects the performance of respondents recruited using MTurk.

This Essay fills both of these gaps. We develop an experiment and test the effect of various compensation structures on performance along two dimensions: effort and attention. We find that both the …

Can And Should Universal Injunctions Be Saved?, Szymon S. Barnas

Vanderbilt Law Review

The practice of a federal district court judge halting the government's enforcement of an executive action against not only the parties before the court but against anyone, anywhere, may be coming to an end. Multiple Supreme Court Justices have expressed their skepticism in the propriety of universal injunctions. The growing scholarly consensus is that there should be a brightline rule against them. If the universal injunction's demise is impending and the class action's demise continues unabated, obtaining systemwide relief may be difficult when such relief may be most needed.

This Note considers whether universal injunctions can and should be saved. …

Taking Laughter Seriously At The Supreme Court, Tonja Jacobi, Matthew Sag

Vanderbilt Law Review

Laughter in Supreme Court oral arguments has been misunderstood, treated as either a lighthearted distraction from the Court's serious work, or interpreted as an equalizing force in an otherwise hierarchical environment. Examining the more than nine thousand instances of laughter witnessed at the Court since 1955, this Article shows that the Justices of the Supreme Court use courtroom humor as a tool of advocacy and a signal of their power and status. As the Justices have taken on a greater advocacy role in the modern era, they have also provoked more laughter.

The performative nature of courtroom humor is apparent …

The Missing Regulatory State: Monitoring Businesses In An Age Of Surveillance, Rory V. Loo

Vanderbilt Law Review

An irony of the information age is that the companies responsible for the most extensive surveillance of individuals in history-large platforms such as Amazon, Facebook, and Google-have themselves remained unusually shielded from being monitored by government regulators. But the legal literature on state information acquisition is dominated by the privacy problems of excess collection from individuals, not businesses. There has been little sustained attention to the problem of insufficient information collection from businesses. This Article articulates the administrative state's normative framework for monitoring businesses and shows how that framework is increasingly in tension with privacy concerns. One emerging complication is …

Reestablishing A Knowledge Mens Rea Requirement For Armed Career Criminal Act "Violent Felonies" Post-Voisine, Jeffrey A. Turner

Vanderbilt Law Review

Until 2016, federal courts unanimously concluded that predicate offenses for the Armed Career Criminal Act ('ACCA") required a knowledge mens rea. Therefore, any state law crimes that could be com- mitted with a reckless mens rea were not "violent felonies" and could not serve as ACCA predicates. In 2016, however, the U.S. Supreme Court's opinion in Voisine v. United States disrupted that lower court consensus. The Court stated that a reckless mens rea was sufficient to violate 18 U.S.C. § 922(g)(9), which bars individuals convicted of misdemeanor domestic violence offenses from possessing firearms.

The ACCA's language is similar to § …

Pregnant People?, Jessica A. Clarke

Vanderbilt Law School Faculty Publications

In their article Unsexing Pregnancy, David Fontana and Naomi Schoenbaum undertake the important project of disentangling the social aspects of pregnancy from those that relate to a pregnant woman’s body. They argue that the law should stop treating the types of work either parent can do — such as purchasing a car seat, finding a pediatrician, or choosing a daycare — as exclusively the domain of the pregnant woman. The project’s primary aim is to undermine legal rules that assume a gendered division of labor in which men are breadwinners and women are caretakers. But Fontana and Schoenbaum argue their …

Misdemeanor Appeals, Nancy J. King, Michael Heise

Vanderbilt Law School Faculty Publications

We provide the first estimate of the rate of appellate review for misdemeanors, concluding that appellate courts review no more than eight in ten thousand misdemeanor convictions and disturb only one conviction or sentence out of every ten thousand misdemeanor judgments. This level of oversight is much lower than that for felony cases, for reasons we explain. To develop law and regulate error in misdemeanor cases, particularly in prosecutions for the lowest-level offenses, courts may need to provide mechanisms for judicial scrutiny outside the direct appeal process.

Additional findings include new information about the rate of felony trial court review …

The Diversity Imperative Revisited: Racial And Gender Inclusion In Clinical Law Faculty, G. S. Hans, D. N. Archer, Et Al.

Vanderbilt Law School Faculty Publications

The demographics of clinical law faculties matter. As Professor Jon Dubin persuasively argued nearly twenty years ago in his article Faculty Diversity as a Clinical Legal Education Imperative, clinical faculty of color entering the legal academy in the 1980s and 1990s expanded the communities served by law school clinics and the lawyering methods used to serve clients in significant ways that enriched legal education and the profession. They also broadened clinical scholarship to include deconstructions and reconstructions of clinical teaching, offered crucial role modeling and mentorship to students of color, and helped to elevate cross-cultural communication and multiracial collaboration as …

The Law Of Genetic Privacy: Applications, Implications, And Limitations, Ellen Wright Clayton, Barbara J. Evans, James W. Hazel, Mark A. Rothstein

Vanderbilt Law School Faculty Publications

Recent advances in technology have significantly improved the accuracy of genetic testing and analysis, and substantially reduced its cost, resulting in a dramatic increase in the amount of genetic information generated, analysed, shared, and stored by diverse individuals and entities. Given the diversity of actors and their interests, coupled with the wide variety of ways genetic data are held, it has been difficult to develop broadly applicable legal principles for genetic privacy. This article examines the current landscape of genetic privacy to identify the roles that the law does or should play, with a focus on federal statutes and regulations, …

Dangerousness, Disability, And Dna, Christopher Slobogin

Vanderbilt Law School Faculty Publications

This Article honors three of Professor Arnold Loewy's articles. The first, published over thirty years ago, is entitled Culpability, Dangerousness, and Harm: Balancing the Factors on Which Our Criminal Law is Predicated,' and the second is his 2009 article, The Two Faces of Insanity. In addition to commenting on these two articles about substantive criminal law, I can't resist also saying something about one of Professor Loewy's procedural pieces, A Proposal for the Universal Collection of DNA, published in 2015.

A theme that unites all three of these articles is that they appear to be quite radical, at least on …

How To Save The Supreme Court, Ganesh Sitaraman, Daniel Epps

Vanderbilt Law School Faculty Publications

The consequences of Justice Brett Kavanaugh’s Supreme Court confirmation are seismic. Justice Kavanaugh, replacing Justice Anthony Kennedy, completes a new conservative majority and represents a stunning Republican victory after decades of increasingly partisan battles over control of the Court. The result is a Supreme Court whose Justices are likely to vote along party lines more consistently than ever before in American history. That development gravely threatens the Court’s legitimacy. If in the future roughly half of Americans lack confidence in the Supreme Court’s ability to render impartial justice, the Court’s power to settle important questions of law will be in …

Catching Up Is Hard To Do: Undergraduate Prestige, Elite Graduate Programs, And The Earnings Premium, Joni Hersch, W. Kip Viscusi

Vanderbilt Law School Faculty Publications

A commonly held perception is that an elite graduate degree can "scrub" a less prestigious but less costly undergraduate degree. Using data from the National Survey of College Graduates from 2003 through 2017, this paper examines the relationship between the status of undergraduate degrees and earnings among those with elite post-baccalaureate degrees. Few graduates of nonselective institutions earn post-baccalaureate degrees from elite institutions, and even when they do, undergraduate institutional prestige continues to be positively related to earnings overall as well as among those with specific post-baccalaureate degrees including business, law, medicine, and doctoral. Among those who earn a graduate …

Salary History And Pay Parity, Jennifer Safstrom

Vanderbilt Law School Faculty Publications

Inquiries about a prospective applicant's salary history are controversial because of the role such inequities play in the broader gender pay equity debate. The use of prior salary to determine compensation can perpetuate pay discrimination for women, especially women of color, and lock them into cycles of underpayment when these inequities are carried over from job to job. Reliance on salary history perpetuates historical discrimination and is antithetical to the language and purpose of Title VII and the Equal Pay Act. The purpose of this paper is to critically analyze the legal reasoning relied upon to interpret these laws, especially …

The Choice Between Single Director Agencies And Multimember Commissions, Ganesh Sitaraman, Ariel Dobkin

Vanderbilt Law School Faculty Publications

The question ofhow best to design a new agency is of immense public importance. Congress creates new agencies and reforms agency structures with some regularity, while commentators frequently callfor the creation of new or redesigned agencies. Scholars have, as a result, increasingly turned to studying the diversity of agency structures and questions of agency design.

In this Essay, we tackle one of the decisions that must be made in designing any new agency--the choice between a single-director agency and a multimember commission-and we make a general case against multimember commissions. For the most part, scholarly discussion of these structures is …

Asymmetric Effects On Fatality Rates Of Changes In Workers' Compensation Laws, W. Kip Viscusi, Elissa Philip Gentry

Vanderbilt Law School Faculty Publications

With irreversible investments in safety, changes in workers' compensation laws should affect employer incentives asymmetrically: increases in workers' compen- sation generosity should cause employers to invest more in safety, but comparable decreases might not cause them to disinvest in existing precautionary programs or equipment. Although maximum weekly benefits caps have been fairly stable, state laws have expanded or restricted workers' compensation on multiple other dimensions. State laws may impose new requirements regarding burdens of proof, access to medical care, and the duration of benefits. This article estimates the effect of changes in these more comprehensive measures of workers' compensa- tion …

The Aid Gap, Chris Cuthrie, Emily Lamm

Vanderbilt Law School Faculty Publications

Women lag men in wages and wealth. Women earn 81 percent as much as similarly situated men,' and they own only 32 percent of the wealth that men own. Lawyers are no different. According to the U.S. Census Bureau, female lawyers make 77 percent as much as their male peers, and according to the National Association of Women Lawyers, female equity partners make almost $1oo,ooo less each year than their male peers. Because wage gaps lead to wealth gaps, female lawyers accrue less wealth than their male counterparts.

Identifying The Legitimate Role Of The Value Of A Statistical Life In Legal Contexts, W. Kip Viscusi

Vanderbilt Law School Faculty Publications

This article is based on my keynote address at the American Academy of Economic and Financial Experts conference in which I examined some of the implications for legal contexts of my book, Pricing Lives: Guideposts for a Safer Society. The value of a statistical life (VSL) provides an economic measure of the efficient cost-risk tradeoff rate for mortality risk decisions. Consequently, the VSL is well suited to serving as a measure of the benefits of mortality risk reduction for government regulatory policies and for corporate risk decisions. The tort liability counterpart of this function is using the VSL to assess …

The Mortality Cost Metric For The Costs Of War, W. Kip Viscusi

Vanderbilt Law School Faculty Publications

Estimates of the costs of war include the financial costs and the lives that are lost. Using estimates of the value of a statistical life and the value of a statistical injury, the health losses can be converted to a common monetary metric and added to the budgetary costs. Counting the monetary value of the direct war-related fatalities and injuries plays a relatively greater role for the Vietnam War than for the Iraq and Afghanistan conflicts. This article proposes an alternative war cost metric that also recognizes the lives that are also lost because economic resources are diverted to war …

Responsible Precautions For Uncertain Environmental Risks, W. Kip Viscusi, Joel Huber, Jason Bell

Vanderbilt Law School Faculty Publications

Uncertain future risks pose cognitive and analytical challenges to household decision makers. Risks with uncertain probabilities, coupled with potentially severe outcomes pose problems for decision-making and are prone to overreactions. Imprecision in risk estimates generates behavioral distortions such as ambiguity aversion. This article presents new empirical results indicating household overvaluations of uncertain threats posed by several drinking water risks: traces of prescription drugs in drinking water, plastic water bottles with bisphenol-A, and the weed killer atrazine in drinking water. Negative reactions reflect responses to ambiguous risks, but policies driven by these concerns may misallocate regulatory resources due to risk conservatism …

Patenting The Unexplained, Sean B. Seymore

Vanderbilt Law School Faculty Publications

It is a bedrock principle of patent law that an inventor need not understand how or why an invention works. The patent statute simply requires that the inventor explain how to make and use the invention. But explaining how to make and use something without understanding how or why it works yields patents with uninformative disclosures. Their teaching function is limited; one who wants to understand or figure out the underlying scientific principles must turn elsewhere. This limited disclosure rule does not align with the norms of science and tends to make patent documents a less robust form of technical …