Law Commons^™

Securities Law's Dirty Little Secret, Usha Rodrigues

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Securities law’s dirty little secret is that rich investors have access to special kinds of investments—hedge funds, private equity, private companies—that everyone else does not. This disparity stems from the fact that, from its inception, federal securities law has jealously guarded the manner in which firms can sell shares to the general public. Perhaps paternalistically, the law assumes that the average investor needs the protection of the full panoply of securities regulation and thus should be limited to buying public securities. In contrast, accredited—i.e., wealthy— investors, who it is presumed can fend for themselves, have the luxury of choosing between …

In Search Of Safe Harbor: Suggestions For The New Rule 506(C), Usha Rodrigues

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I devote most of this essay to exploring how, exactly, the Securities and Exchange Commission (“SEC”) should go about providing guidelines to implement the statutory requirement that issuers have a reasonable belief that a purchaser is accredited. The SEC has proposed rules, but these rules merely restate what Congress has already required, thus sidestepping Congress’s direction that the agency itself articulate some verification methods. Taking the SEC’s decidedly amorphous proposal to task, I recommend that the SEC offer two nonexclusive safe harbors for issuers to guide them in determining whether a natural person is an accredited investor. The paragraphs below …

Adequately Representing Groups, Elizabeth Chamblee Burch

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Adequate representation and preclusion depend on whether the courts treat a litigant as part of a group experiencing an aggregate harm or as a distinct person suffering individual injuries. And though a vast literature about adequate representation exists in the class-action context, it thins dramatically when contemplating other forms of group litigation, such as parens patriae actions and multidistrict litigation. As class actions have gradually fallen into disfavor and attorneys and commentators seek alternative means for resolving group harms, the relative clarity of Rule 23 wanes. How should courts evaluate adequate representation in parens patriae actions and in multidistrict litigation? …

The Puzzling Persistence Of Horizontal Privity, Michael Lewyn

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A discussion of the horizontal privity doctrine. Under this doctrine, restrictive covenants are binding upon future grantees only if the original parties to the covenant share some property interest outside the covenant- for example, if they are grantor and grantee of the same land, or if they are landlord and tenant. Although the doctrine has been often criticized by scholars, no recent court has rejected the privity requirement.

The Legal Reader: An Exposé, Michael J. Higdon

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John Steinbeck once said, “Your audience is one single reader. I have found that sometimes it helps to pick out the person — a real person you know, or an imagined person — and write to that one.” For legal writers, however, this advice is somewhat difficult to follow as their documents are likely to be read by many different kinds of audience members. In this Article, however, I mean to focus specifically on one particular kind of reader: the legally-trained reader or, more simply, the legal reader. After all, the majority of lawyers will find themselves communicating most often …

Sentence Appeals In England: Promoting Consistent Sentencing Through Robust Appellate Review, Briana Lynn Rosenbaum

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Unlike in most areas of the law, federal courts of appeals in the United States defer to trial courts on many issues of sentencing law and policy. As a result, the power to decide sentencing law and policy is often at the discretion of individual district court judges. Law reform scholars have long decried the disparity, lack of transparency, and legitimization concerns that this practice raises. These concerns are heightened in the post-Booker sentencing regime, where the advisory nature of the Federal Sentencing Guidelines undermines those Guidelines’ ability to further sentencing consistency. The deferential approach to federal sentence appeals is …

A Response To Commissioner Wright's Proposed Policy Statement Regarding Unfair Methods Of Competition, Maurice Stucke

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Federal Trade Commissioner Joshua Wright recently proposed a new legal standard to evaluate “unfair methods of competition” under Section 5 of the Federal Trade Commission Act, 15 U.S.C. 45(a) (2012).

This essay raises several concerns. First, Wright’s proposed legal standard does not go as far as Congress intended. Moreover it conflates unfair methods of competition with acts and practices that significantly harm consumer welfare. A second concern is that the proposed legal standard goes the other direction and permits conduct that is otherwise illegal under the Sherman and Clayton Acts. Third, the proposed standard reduces accuracy, is hard to administer …

Should Competition Policy Promote Happiness?, Maurice Stucke

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What, if anything, are the implications of the happiness economics literature on competition policy? This Paper first examines whether competition policy should promote (or at least not impede) citizens’ opportunities to increase well-being. The Paper next surveys the happiness literature on five key issues: (i) What constitutes well-being; (ii) How do you measure well-being; (iii) What increases well-being; (iv) Do people want to be happy; and (v) Can and should the government promote total well-being? Although the happiness literature does not provide an analytical framework for analyzing routine antitrust issues, this does not mean that competition officials should discount or …

The New Intermediary On The Block: Funding Portals Under The Crowdfund Act, Joan Macleod Heminway

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The CROWDFUND Act, part of the JOBS Act signed into law in the United States in April 2012, provides for a new registered securities intermediary known as a funding portal. Funding portals or registered brokers must participate in crowdfunded offerings of securities conducted in accordance with the new federal offering registration exemption created in the CROWDFUND Act. Although regulations are forthcoming that will further illuminate the structure and function of funding portals, the CROWDFUND Act itself offers some insights into the role of funding portals in securities crowdfunding and allows for preliminary observations about legal issues inherent in funding portal …

The Law's Mystery, Linda L. Berger, Jack L. Sammons

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What is the continuing significance of Cohen v. California, the 1971 U.S. Supreme Court decision holding that “Fuck the Draft” is a message protected by the First Amendment? Using Cohen as an exemplar, this article offers a new theory about how to understand the law and judicial opinions.

The theory begins in a recognition of the “law” as resting upon mystery and uncertainty, a mystery that is also the source of the law’s enchantment. It is this enchantment that we depend upon for the law to be authoritative rather than authoritarian and reducible to the political and thus to …

Book Review: "Die Gemeinfreiheit: Begriff, Funktion, Dogmatik (The Public Domain: Concept, Function, Dogmatics)" By Alexander Peukert, Marketa Trimble

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The reviewer considers a recent book by Alexander Peukert, the professor of civil and commercial law who specializes in international intellectual property law at Goethe University in Frankfurt am Main, Germany. Peukert has devoted the book to defining the limits of the public domain – the realm of intellectual activity in which works are free for anyone to use because the works are not protected by intellectual property rights, are protected but the protection has expired, are subject to an exception to the rights under the law, or are unprotected because the owner of the rights chooses not to enforce …

Genomics Unbound: The Scientific And Legal Case Against Patents Based On Naturally Occurring Dna Sequences, Fazal Khan

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While there have been mixed opinions as to whether gene patents were dead in light of Prometheus,this Article argues that a proper understanding of patent law, genomics, and public policy concerns should lead to no other result. The primary focus of this piece is to rebut certain vested interests in the biotechnology industry and affirm the normative claim that gene patents improperly fetter genomics research and development. First, through the lens of the Myriad case, we will recount why there was such a strong public interest movement against recognizing such patents. Specifically, we will show how patents on naturally occurring …

The Problem With Misdemeanor Representation, Erica J. Hashimoto

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The failure to appoint counsel in misdemeanor cases may represent one of the most widespread violations of federal constitutional rights in criminal cases. A decade ago, in Alabama v. Shelton, the Supreme Court held that indigent defendants sentenced to suspended terms of incarceration in misdemeanor cases have a constitutional right to appointed counsel, even if the defendant is never actually incarcerated. Several factors contribute to this omission. First, some jurisdictions have simply refused to honor the Court's holding. Second, potentially unconstitutional barriers to the appointment of counsel-including prohibitively high fees imposed on defendants, failures to fully inform defendants of their …

International Law’S Erie Moment, Harlan G. Cohen

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Who fills international law’s gaps? Whether over the meaning of bilateral investment treaties, the standards regarding detainee transfer, or the rules of non-international armed conflict, courts and states are increasingly in conflict over the authority to say what the law is. With international law’s increased judicialization, two competing visions of international law have emerged: One, a gap-filled international law, in which law is developed slowly through custom, argument, and negotiation, and a second, gap-less, in which disputes are resolved through a form of common law adjudication.

Drawing on growing literature on the law outside of courts, particularly out-of-court settlements, the …

Illuminating Innumeracy, Lisa Milot

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Everyone knows that lawyers are bad at math. Many fields of law, though — from explicitly number-focused practices like tax law and bankruptcy, to the less obviously numerical fields of family law and criminal defense — require interaction with, and sophisticated understandings of, numbers. To the extent that lawyers really are bad at math, why is that case? And what, if anything, should be done about it?

In this Article, I show the ways in which our acceptance of innumeracy harms our ability to practice and think about the law. On a practical level, we miscalculate numbers, oversimplify formulas, and, …

The Law Professor As Faculty Athletics Representative: Some Random Thoughts After Two Years, David E. Shipley

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It is a pleasure to write an essay about something I really enjoy, and it is especially pleasing not to worry about footnotes. I have been a law professor since 1977, and in August 2012, I started my 35th year of teaching. It is still fun to be in the classroom; my students energize me, teaching remains a challenge and being a productive scholar is important. I am one of those professors who likes his law school, university and professional service commitments. I am fortunate to have the best job in higher education: being a tenured law professor. My service …

Conceptions Of Corporate Purpose In Post-Crisis Financial Firms, Christopher M. Bruner

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American "populism" has had a major impact on the development of U.S. corporate governance throughout its history. Specifically, appeals to the perceived interests of average working people have exerted enormous social and political influence over prevailing conceptions of corporate purpose - the aims toward which society expects corporate decision-making to be directed. This article assesses the impact of American populism upon prevailing conceptions of corporate purpose - contrasting its unique expression in the context of financial firms with that arising in other contexts - and then examines its impact upon corporategovernance reforms enacted in the wake of the financial and …

Resolving The Alj Quandary, Kent H. Barnett

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Three competing constitutional and practical concerns surround federal administrative law judges (“ALJs”), who preside over all formal adjudications within the executive branch. First, if ALJs are “inferior Officers” (not mere employees), as five current Supreme Court Justices have suggested, the current method of selecting many ALJs likely violates the Appointments Clause. Second, a recent U.S. Supreme Court decision reserved the question whether the statutory protections that prevent ALJs from being fired at will impermissibly impinge upon the President’s supervisory power under Article II. Third, these same protections from removal may, on the other hand, be too limited to satisfy impartiality …

Contract And Choice, Peter B. Rutledge, Christopher R. Drahozal

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This Article contributes to an ongoing debate, afoot in academic, legal, and policy circles, over the future of consumer arbitration. Utilizing a newly available database of credit card agreements, the Article offers an in-depth examination of dispute resolution practices within the credit card industry. In some respects, the data cast doubt on the conventional wisdom about the pervasiveness of arbitration clauses in consumer contracts and the presence of unfair terms. For example, the vast majority of credit card issuers do not utilize arbitration clauses, and by the end of 201 0, the majority of credit card debt was not subject …

A Short Road To Statehood, A Long Road To Washington, Rachel J. Anderson

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This article documents the election in 2012 of the first African-American to represent Nevada in the U.S. Congress, Steven Horsford. It is part of "A Special Series on African Americans in Nevada Politics - Past and Present" on pages 16-21 of the issue." Sources are on page 21 of the issue.

Ham Sandwich Nation: Due Process When Everything Is A Crime, Glenn Harlan Reynolds

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Though extensive due process protections apply to the investigation of crimes, and to criminal trials, perhaps the most important part of the criminal process -- the decision whether to charge a defendant, and with what -- is almost entirely discretionary. Given the plethora of criminal laws and regulations in today's society, this due process gap allows prosecutors to charge almost anyone they take a deep interest in. This Essay discusses the problem in the context of recent prosecutorial controversies involving the cases of Aaron Swartz and David Gregory, and offers some suggested remedies, along with a call for further discussion.

Teaching Business Associations Law In The Evolving New Market Economy, Joan Macleod Heminway

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Over the past ten years, the doctrinal rules governing business associations have become more complex (with, e.g., the addition of significant federal law on corporate governance and corporate finance and the recent enactment of social enterprise forms of entity). Moreover, a number of us have added experiential learning to the business associations course (or another similarly titled foundational course on business entity law) and have increased the number and types of assessment tools used in our business associations pedagogy. This has made the task of teaching business associations somewhat overwhelming.

Law faculty respond to the challenges of teaching introductory business …

Use Of Dominance, Unlawful Conduct, And Causation Under Section 36 Of The New Zealand Commerce Act: A U.S. Perspective, Maurice Stucke

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The proper interpretation of the abuse of dominance provisions in Section 36 of the New Zealand Commerce Act has been a matter of controversy. The courts of New Zealand have taken a view of the requirements of this important provision of competition law in a narrow and formal manner that makes it very difficult to take enforcement action against conduct which has a net anticompetitive effect, but which has no, or at best minimal, business or procompetitive justification. We offer this white paper to provide a United States perspective to suggest that the current counterfactual test applied by the courts …

Technology's Triple Threat To The Attorney-Client Privilege, Paula Schaefer

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Three issues – volume of recorded communications, ease of dissemination, and lack of knowledge – are today’s primary technology-related threats to the attorney-client privilege. Generally speaking, attorney-client communications must be kept confidential to retain their privileged status. In the information age, the volume of recorded attorney-client communications and ease of their dissemination makes it more difficult than ever to protect against disclosure. Whether that disclosure is intentional or inadvertent, it can result in privilege waiver.

While some perceive that a gap in attorney knowledge about technology is a major threat to the privilege, that does not appear to be the …

A New Perspective On Judicial Disqualification: An Antidote To The Effects Of The Decisions In White And Citizens United, Penny White

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No abstract provided.

What Casey Martin Has To Teach Us About Disability Discrimination In The Workplace, Alex B. Long

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No abstract provided.

A Place In The Academy: Law Faculty Hiring And Socioeconomic Bias, Michael J. Higdon

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In the movie Moneyball — based on the nationally bestselling book of the same name — Jonah Hill’s character, Peter Brand remarks, “People are overlooked for a variety of biased reasons and perceived flaws.” Although his character was referring to baseball players, the same could be said of those who attempt to secure jobs as law professors. In fact, many law students are later surprised to learn that their ability to secure a job as a law professor has much less to do with what they have might have done during their legal careers, and more to do with simply …

The True Value Of A Law Degree, Or, Why Did Thurgood Marshall Go To Law School?, Gregory M. Stein

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There has been vigorous debate in recent months over whether a law degree is a worthwhile investment. Much of this discussion has focused on whether the economic costs of obtaining a degree pay off over a lawyer’s career. This conversation has largely overlooked the many non-economic benefits of a law degree. In this essay, we seek to re-introduce several non-economic factors back into this important dialogue. We suggest that prospective law school applicants would be wise to consider these non-economic factors in addition to economic ones.

Teaching Antitrust After The Financial Crisis, Maurice Stucke

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No abstract provided.

How To Stop Worrying And Learn To Love The Second Amendment: A Reply To Professor Magarian, Glenn Harlan Reynolds

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In response to Gregory Magarian's Speaking Truth to Firepower: How the First Amendment Destabilizes the Second, 91 Texas Law Review 49, 53-72 (2012), we argue first that the strict dichotomy he posits between an individual right to keep and bear arms aimed at deterring (and furnishing the means for ultimately opposing) governmental tyranny and a right securing the means for private self-defense is a false one. Further, we argue that, to the extent there is any tension between the First and Second Amendments, Heller and McDonald eased that tension by locating individual self-defense at the core of the right. Such …