Law Commons^™

Rediscovering Board Expertise: Legal Implications Of The Empirical Literature, Lawrence A. Cunningham

GW Law Faculty Publications & Other Works

This paper reviews and draws insights from recent empirical research in financial accounting on the value of director expertise for financial reporting quality. Among important consequences of Sarbanes-Oxley is an increase in the percentage of accounting experts on boards of directors, particularly on audit committees.

The research reviewed here documents the value of this expertise in promoting financial reporting quality measured in terms of "accounting earnings management" (artificial bookkeeping manipulations). These findings contrast with well-known evidence showing little value arising from director independence.

The research holds numerous implications and raises important questions, including the following:

1. It shows that accounting …

Grand Jury Discretion And Constitutional Design, Roger A. Fairfax Jr.

GW Law Faculty Publications & Other Works

The grand jury possesses an unqualified power to decline to indict - despite probable cause that alleged criminal conduct has occurred. A grand jury might exercise this power, for example, to disagree with the wisdom of a criminal law or its application to a particular defendant. A grand jury might also use its discretionary power to send a message of disapproval regarding biased or unwise prosecutorial decisions or inefficient allocation of law enforcement resources in the community. This ability to exercise discretion on bases beyond the sufficiency of the evidence has been characterized pejoratively as grand jury nullification. The dominant …

On The Importance To Economic Success Of Property Rights In Finance And Innovation, F. Scott Kieff

GW Law Faculty Publications & Other Works

This Essay surveys recent developments across the fields of finance and innovation to highlight some common themes concerning the importance of property rights to economic success. Society regularly makes choices when shaping the precise contours of the legal institutions that govern the behavior of market actors, often in response to high profile issues like the collapse of Enron and the patenting of life-saving AIDS drugs. Recognizing that no set of legal institutions or related enforcement mechanisms will be perfect, this Essay explores some particularly helpful institutional features based on property rights that too often are overlooked by policy makers and …

Quanta V. Lg Electronics: Frustrating Patent Deals By Taking Contracting Options Off The Table?, F. Scott Kieff

GW Law Faculty Publications & Other Works

The Supreme Court's unanimous decision in Quanta v. LG Electronics may make it significantly more difficult to structure transactions involving patents. While this decision does make a group of players into winners in the immediate term for existing patent deals (this group includes any customer who, like Quanta, buys patented parts without buying a patent license), almost everyone is likely to come out a loser going forward.

The Court in Quanta decided that a patent license that LG Electronics sold only to Intel - and explicitly limited to exclude Intel's customers, like Quanta, and priced to reflect these modest ambitions …

More Than One Cent For Tribute, Gregory E. Maggs

GW Law Faculty Publications & Other Works

This is a book review of Fred S. McChesney, Money for Nothing: Politicians, Rent Extraction & Political Extortion (Harvard University Press 1997).

Effectiveness Of Government Interventions At Inducing Better Environmental Performance: Does Effectiveness Depend On Facility Or Firm Features?, Robert L. Glicksman, Dietrich Earnhart

GW Law Faculty Publications & Other Works

Environmental agencies have several options for dealing with alleged noncompliance with environmental regulations. These options include pursuit of administrative or judicial civil penalties and injunctions to prevent future violations. Scholars have begun exploring whether these options induce better performance by regulated entities. This Article addresses a largely neglected question: whether a regulated facility's characteristics affect the efficacy of the different enforcement options. The Article stems from a study of compliance by the chemical industry with federal Clean Water Act permits. It assesses whether facility characteristics, including effluent limit level and type, permit modifications, facility size, capacity utilization, discharge volatility, and …

Rating Risk After The Subprime Mortgage Crisis: A User Fee Approach For Rating Agency Accountability, Jeffrey Manns

GW Law Faculty Publications & Other Works

This article argues that an absence of accountability and interconnections of interest between rating agencies and their debt issuer clients fostered a system of lax ratings that provided false assurances on the risk exposure of subprime mortgage-backed securities and collateralized debt obligations. It lays out an innovative, yet practical pathway for reform by suggesting how debt purchasers, the primary beneficiaries of ratings, may bear both the burdens and benefits of rating agency accountability by financing ratings through an SEC-administered user fee system in exchange for enforceable rights. The SEC user fee system would require rating agencies both to bid for …

Stemming The Tide Of Law Student Depression: What Law Schools Need To Learn From The Science Of Positive Psychology, Todd Peterson, Elizabeth Waters Peterson

GW Law Faculty Publications & Other Works

A growing body of literature shows that law students exhibit unique signs of psychological distress, including elevated levels of depression, stress, and anxiety. Law students also report significantly higher incidences of alcohol and drug abuse than their peers at other graduate schools. The article assesses the programs that 75 top law schools currently use to combat these alarming trends and finds that they are primarily reactive and that they do not sufficiently address the source or the scope of the problem. This article explores some of the ways in which positive psychology may be uniquely suited to address this student …

Children And Religious Expression In School: A Comparative Treatment Of The Veil And Other Religious Symbols In Western Democracies, Catherine J. Ross

GW Law Faculty Publications & Other Works

Whether and how to accommodate students' personal religious symbols worn in public schools are part of a mounting global debate. The competing claims of the body politic and the religious or cultural identity of minority groups came to a head in what the French called the "affair of the veil." This chapter examines the problem of the veil from a cross-cultural perspective, comparing the United States to several other western democracies. The comparison involves both legal and cultural premises. In each instance, the analysis must consider the fundamental values of the body politic, the laws and covenants that govern decision-making, …

There Is A There There: How The Zippo Sliding Scale Has Destabilized The Structural Foundation Of Personal Jurisdiction Analysis, Catherine J. Ross

GW Law Faculty Publications & Other Works

In 1997, the Federal District Court for the Western District of Pennsylvania evaluated one in a line of emerging personal jurisdiction cases that raised the question of whether Internet-based contacts with citizens of the forum state can alone establish the defendant purposefully availed himself of the benefits and protections of the forum state. In this unlikely watershed case, Zippo Mfg. Co. v. Zippo Dot Com, the District Court wrangled with the new concept of purposeful availment through electronic contact with the forum state. The court viewed Zippo and its antecedents as components of a new body of personal jurisdiction law: …

Understanding Privacy (Chapter One), Daniel J. Solove

GW Law Faculty Publications & Other Works

Privacy is one of the most important concepts of our time, yet it is also one of the most elusive. As rapidly changing technology makes information increasingly available, scholars, activists, and policymakers have struggled to define privacy, with many conceding that the task is virtually impossible.

In UNDERSTANDING PRIVACY (Harvard University Press, May 2008), Professor Daniel J. Solove offers a comprehensive overview of the difficulties involved in discussions of privacy and ultimately provides a provocative resolution. He argues that no single definition can be workable, but rather that there are multiple forms of privacy, related to one another by family …

The New Vulnerability: Data Security And Personal Information, Daniel J. Solove

GW Law Faculty Publications & Other Works

This book chapter was originally written for a conference on privacy and security at Stanford Law School held in March 2004. The chapter argues that abuses of personal information are caused by the failure to regulate the way companies manage personal information. Despite taking elaborate technological measures to protect their data systems, companies readily disseminate the personal information they have collected to a host of other entities and sometimes even to anyone willing to pay a small fee. Companies provide access to their record systems over the phone to anybody in possession of a few easy-to-find pieces of personal information …

Subprime Crisis Confirms Wisdom Of Separating Banking And Commerce, Arthur E. Wilmarth Jr.

GW Law Faculty Publications & Other Works

During the past three years, a highly-publicized controversy has raged over the question of whether Congress should prohibit acquisitions of industrial loan companies (ILCs) by commercial organizations. The controversy began when Wal-Mart and Home Depot filed applications to acquire ILCs. Those applications triggered strong opposition from a broad coalition that included the Federal Reserve Board (FRB), members of Congress, community banks, labor unions, retail stores, and community activists. From July 2006 to January 2008, the Federal Deposit Insurance Corporation (FDIC) imposed a moratorium on the processing of applications by commercial firms to acquire ILCs. In May 2007, the House of …

Sustainable Federal Land Management: Protecting Ecological Integrity And Preserving Environmental Principal, Robert L. Glicksman

GW Law Faculty Publications & Other Works

This article explores the application of the principles of sustainability to management of lands and resources under the jurisdiction of the U.S. Forest Service and the Bureau of Land Management. These two agencies operate a mandate to manage the resources under their control to achieve sustained yield. In this context, sustainability has operated to date primarily in an aspirational fashion, as a broad objective of public land management, rather than as a useful management tool or an enforceable constraint on agency management discretion. The article urges the adoption of amendments to the laws under which the Forest Service and the …