Law Commons^™

From Federalism To Intersystemic Governance: The Changing Nature Of Modern Jurisdiction, Robert B. Ahdieh

Robert B. Ahdieh

At heart, this introductory essay aspires to encourage scholars who write in widely divergent areas, yet share a focus on the changing nature of jurisdiction, to engage one another more closely. From Jackson's study of "convergence, resistance, and engagement" among courts, Kingsbury's study of "global administrative law," and Bermann's analysis of "transatlantic regulatory cooperation," to Resnik's evaluation of "trans-local networks," Weiser's account of "cooperative federalism" in telecommunications law, and Thompson's concept of "collaborative corporate governance," a related set of questions is ultimately at stake: How ought we understand the reach of any given decision-maker's jurisdiction? What are the implications of …

License To Deal: Mandatory Approval Of Complex Financial Products, Saule Omarova

Saule T. Omarova

“There is definitely going to be another financial crisis around the corner because we haven’t solved any of the things that caused the previous crisis,” said hedge fund legend Mark Mobius, speaking in Tokyo nearly a full year after the United States officially embarked upon the greatest reform of financial services regulation since the New Deal. Today, the world is still reeling from the recent financial crisis, which ravaged even the strongest economies and left them battling recession, budget deficits, soaring unemployment, and political discontent. Facing another financial crisis in this situation is a frightening prospect. National governments, individually or …

Complexity And Simplicity In Law: A Review Essay (Cass R. Sunstein, Simpler: The Future Of Government (2003)), David M. Driesen

David M Driesen

This essay discusses Cass Sunstein’s book, Simpler: The Future of Government, in order to advance our understanding of the concepts of complex and simple law. Many writers identify complexity with uncertainty and high cost. This essay argues that complexity bears no fixed relationship to costs or benefits. It also shows that complexity’s relationship to uncertainty is so ambiguous that it is profitable to treat complexity and uncertainty as separate concepts. It develops useful separate concepts of legal and compliance complexity that will aid efforts to simplify law, like the one Sunstein claims to have embarked upon. It also argues that …

Complexity And Simplicity In Law: A Review Essay (Cass R. Sunstein, Simpler 2013)), David M. Driesen

David M Driesen

This essay discusses Cass Sunstein’s book, Simpler, in order to advance our understanding of the concepts of complex and simple law. Many writers identify complexity with uncertainty and high cost. This essay argues that complexity bears no fixed relationship to costs or benefits. It also shows that complexity’s relationship to uncertainty is so ambiguous that it is profitable to treat complexity and uncertainty as separate concepts. It develops useful separate concepts of legal and compliance complexity that will aid efforts to simplify law, like the one Sunstein claims to have embarked upon. It also argues that complexity is a hallmark …

Against Regulatory Displacement: An Institutional Analysis Of Financial Crises, Jonathan C. Lipson

Jonathan C. Lipson

This paper uses “institutional analysis”—the study of the relative capacities of markets, courts, and regulators—to make three claims about financial crises.

First, financial crises are increasingly a problem of “regulatory displacement.” Through the ad hoc rescues of 2008 and the Dodd-Frank reforms of 2010, regulators displace market and judicial processes that ordinarily prevent financial distress from becoming financial crises. Because regulators are vulnerable to capture by large financial services firms, however, they cannot address the pathologies that create crises: market concentration and complexity. Indeed, regulators may inadvertently aggravate these conditions through resolution tactics that consolidate firms, and the volume and …

Those Who Know, Those Who Don't, And Those Who Know Better: Balancing Complexity, Sophistication, And Accuracy On Tax Returns, Michelle L. Drumbl

Michelle L. Drumbl

Refundable credits, particularly the earned income tax credit (EITC) and the child tax credit, serve an important anti-poverty measure for low-income taxpayers. Annually, millions of taxpayers who do not owe any federal income tax must file a tax return in order to claim these credits that are in the nature of social benefits. The eligibility requirements for refundable credits are complex, and these returns are particularly prone to audit: EITC audits comprise one-third of all individual income tax audits. Because of the large dollar amounts at stake, a taxpayer’s mistaken understanding of the eligibility requirements for these refundable credits can …

Why Is International Law Changing? Primary Factors In The Greater Complexity Of International Law, Marcelo Dias Varella

Marcelo D. Varella

This paper examines factors of change in post-national law, particularly the effects of globalization on the international legal order. The end of the cold enabled the strengthening of international law through new legal norms and the emergence of post-national law. Among the principal factors accelerating the internationalization of law has been the emergence of a multipolar political and economic order. In the political realm, the end of the bipolar system between the United States and the Soviet Union allowed the emergence of various actors and made possible the construction of power in the international sphere through legal rules. Economically, a …

The Rise Of Carrots And The Decline Of Sticks, Giuseppe Dari-Mattiacci, Gerrit De Geest

Giuseppe Dari-Mattiacci

There is a remarkable tendency in modern legal systems to increasingly use carrots. This trend is not limited to legal systems but can also be observed in, for instance, parenting styles, social control mechanisms, and even law schools’ teaching methods. Yet, at first glance, sticks appear to be a more efficient means of inducing people to comply with legal rules or social norms because they are not meant to be applied (thus minimizing transaction costs and risks) and may cause fewer unintended distributional distortions. So how can we justify the widespread use of carrots?

This Article shows that carrots can …

Effects Of Globalization On The Theory Of International Law, Marcelo Dias Varella

Marcelo D. Varella

International legal theory is an object that is intensely reshaped and rebuilt, largely due to globalization processes. The way that actors create, implement and control international law is far more prevalent today than it used to be thirty years ago. There is an intensification of the transnational legal process. The dichotomy between national and international law is much less clear. The primary actor continues to involve States, but there is a multiplication and densification of the role of sub-state and non-state actors. A dynamic process prevails over the static one; there is a continuous transformation of international law, by both …

Complexity, Innovation And The Regulation Of Modern Financial Markets, Dan Awrey

Dan Awrey

The intellectual origins of the global financial crisis (GFC) can be traced back to blind spots emanating from within conventional financial theory. These blind spots are distorted reflections of the perfect market assumptions underpinning the canonical theories of financial economics: modern portfolio theory; the Modigliani and Miller capital structure irrelevancy principle; the capital asset pricing model and, perhaps most importantly, the efficient market hypothesis. In the decades leading up to the GFC, these assumptions were transformed from empirically (con)testable propositions into the central articles of faith of the ideology of modern finance: the foundations of a widely held belief in …

Multidimensional Governance And The Bp Deepwater Horizon Oil Spill, Hari Osofsky

Hari Osofsky

This Article explores the governance challenges posed by the BP Deepwater Horizon oil spill, and proposes strategies for developing more inclusive, responsive institutions to help meet them. It begins by analyzing the incident through five core dimensions—vertical, horizontal, direction of hierarchy, cooperativeness, and public-private—to demonstrate the multi-level, multi-actor interactions taking place in offshore drilling and oil spill regulation. It then explains the ways in which the complex interactions in these dimensions translate into four core governance challenges: scientific and legal uncertainty, simultaneous overlap and fragmentation, the difficulties of balancing efficiency and inclusion, and inequality and resulting injustice. The Article next …

Biological Metaphors For Whiteness: Beyond Merit And Malice, Brant T. Lee

Brant T. Lee

The problem of persistent racial inequality is grounded in a failure of imagination. The general mainstream conception is that unfair racial inequality occurs only when there is intentional racism. Absent conscious racial malice, no racism is seen to exist. The only generally available alternative explanation for racial inequality is the meritocratic system. Viewing the distribution of resources as a product of a generally fair meritocratic system provides a defense against any charge of racism, and justifies the status quo.

But in economics, business, computer science, and even biology, observers of complexity are coming to understand how dominant systems can prevail …

New Governance In The Teeth Of Human Frailty: Lessons From Financial Regulation, Cristie L. Ford

Cristie L. Ford

New Governance scholarship has made important theoretical and practical contributions to a broad range of regulatory arenas, including securities and financial markets regulation. In the wake of the global financial crisis, question about the scope of possibilities for this scholarship are more pressing than ever. Is new governance a full-blown alternative to existing legal structures, or is it a useful complement? Are there essential preconditions to making it work, or can a new governance strategy improve any decision making structure? If there are essential preconditions, what are they? Is new governance “modular” – that is, does it still confer benefits …

Principles-Based Securities Regulation In The Wake Of The Global Financial Crisis, Cristie L. Ford

Cristie L. Ford

This paper seeks to re-examine, and ultimately to restate the case for, principles-based securities regulation in light of the global financial crisis and related developments. Prior to the onset of the crisis, the concept of more principles-based financial regulation was gaining traction in regulatory practice and policy circles, particularly in the United Kingdom and Canada. The crisis of course cast financial regulatory systems internationally, including more principles-based approaches, into severe doubt. This paper argues that principles-based securities regulation as properly understood remains a viable and even necessary policy option, which offers solutions to the real-life and theoretical challenge that the …

"Stationarity Is Dead" -- Long Live Transformation: Five Principles For Climate Change Adaptation Law, Robin K. Craig

Robin K. Craig

While there is no question that successful mitigation strategies remain critical in the quest to avoid worst-case climate change scenarios, we’ve passed the point where mitigation efforts alone can deal with the problems that climate change is creating. Because of “committed” warming – climate change that will occur regardless of mitigation measures, a result of the already-accumulated greenhouse gases in the atmosphere – what happens to social-ecological systems over the next decades, and most likely over the next few centuries, will largely be beyond human control. The time to start preparing for these changes is now, by making adaptation part …

Scale-Free Law: Network Science And Copyright, Andres Guadamuz

Andres Guadamuz

Networks are everywhere. The staggering complexity and seemingly chaotic nature of everyday life is actually a collection of different networks interacting with us from the moment that we wake up to the time we go to sleep. We are constantly surrounded by the social network, the financial network, the transport network, the telecommunications network, and even the network within our own bodies. The understanding of how these systems operate and interact with one another has been the realm of physicists, economists, biologists and mathematicians. Until recently, the study of networks lacked empirical application because it was extremely difficult to gather …

Randomness And Complexity In Social Explanation: Evidence From Finance And Bankruptcy Law, Bernard Trujillo

Bernard Trujillo

No abstract provided.

Complexity And Copyright In Contradiction, Michael J. Madison

Michael J. Madison

The title of the article is a deliberate play on architect Robert Venturi?s classic of post-modern architectural theory, Complexity and Contradiction in Architecture. The article analyzes metaphorical ?architectures? of copyright and cyberspace using architectural and land use theories developed for the physical world. It applies this analysis to copyright law through the lens of the First Amendment. I argue that the ?simplicity? of digital engineering is undermining desirable ?complexity? in legal and physical structures that regulate expressive works.