Law Commons^™

Using Experimental Economics To Understand Competition, Bart Wilson

Bart J Wilson

No abstract provided.

Local Rules And A Global Economy: An Economic Policy Perspective, Dan Danielsen

Dan Danielsen

This article explores the growing significance and theoretical implications of ‘local rules’—such as Chinese labour standards, US financial regulation and Swiss bank secrecy rules—in the global economy. In particular, the argument developed is that Ronald Coase’s framework for analysing the effects of legal rules on economic welfare can help to reveal important weaknesses in current international legal approaches to analysing the transnational impact of local rules as well as contribute to a ‘global economic policy perspective’ better attuned to problems of power in the global regulatory order. Such a perspective will help us to see the effects of power differences …

A Health Care Autopsy, Marc Gans

Marc Gans

This paper analyzes each of the factors responsible for the rapid rise in health care spending in this country. This includes an in-depth analysis of prescription drug expenditures, which has been the fastest growing component of health care costs. Lastly, this paper will address whether there is anything particularly unique about health care spending in California.

The Role Of Science In The Uruguay Round And Nafta Trade Disciplines, David A. Wirth

David A. Wirth

The central theme of this article is the necessity for deference to decision-making processes of national regulatory authorities in the application of these new trade disciplines and the need for trade-based reviews of national regulatory measures to operate within clearly defined limits. Accordingly, this article first examines and summarizes the relevant texts, including the original 1947 GATT, the Uruguay Round, and the NAFTA texts on standards. Next, the article considers the role of science in the standard-setting process with reference to the copious literature on this topic. Finally, the article takes up the difficult question of the application of the …

At War With The Environment, David A. Wirth

David A. Wirth

In this Article, Professor Wirth reviews the book National Defense and the Environment by Stephen Dycus, a recognized expert in both environmental and national security law. The emphasis of the book is on containing and remediating the environmental excesses of the American defense-industrial complex, with a domestic policy focus. While Professor Wirth considers Dycus’ work an intellectually rewarding and refreshing new entry into the ongoing environment-as-security colloquy, he does not consider the book to be accessible to a general audience given the book’s fundamentally legalistic nature.

Resolving Large, Complex Financial Firms, Thomas Fitzpatrick, Mark Greenlee, James Thomson

James B Thomson

How to best manage the failure of systemically important fi nancial fi rms was the theme of a recent conference at which the latest research on the issue was presented. Here we summarize that research, the discussions that it sparked, and the areas where considerable work remains.

How Well Does Bankruptcy Work When Large Financial Firms Fail? Some Lessons From Lehman Brothers, Thomas Fitzpatrick, James Thomson

James B Thomson

There is disagreement about whether large and complex financial institutions should be allowed to use U.S. bankruptcy law to reorganize when they get into financial difficulty. We look at the Lehman example for lessons about whether bankruptcy law might be a better alternative to bailouts or to resolution under the Dodd-Frank Act’s orderly liquidation authority. We find that there is no clear evidence that bankruptcy law is insufficient to handle the resolution of large complex financial firms.

Restoring The Natural Law: Copyright As Labor And Possession, Alfred C. Yen

Alfred C. Yen

In this Article, Professor Yen explores the problems associated with viewing copyright solely as a tool for achieving economic efficiency and advocates for the restoration of natural law to copyright jurisprudence. The Article demonstrates that economics has not been solely responsible for copyright’s development and basic structure, but has rather developed along lines suggested by neutral law, despite modern copyright jurisprudence. The Article considers the consequences of extinguishing copyright’s natural law facets in favor of the blind pursuit of efficiency and concludes by exploring the implications of restoring natural law thinking to copyright jurisprudence.

Justice, The Bretton Woods Institutions And The Problem Of Inequality, Frank J. Garcia

Frank J. Garcia

The Bretton Woods Institutions are, together with the WTO, the preeminent international institutions devoted to managing international economic relations. This mandate puts them squarely in the center of the debate concerning development, inequality and global justice. While the normative analysis of the WTO is gaining momentum, the systematic normative evaluation of the World Bank and the International Monetary Fund is comparatively less developed. This essay aims to contribute to that nascent inquiry. How might global justice criteria apply to the ideology and operations of the Bank and Fund? Political theory offers an abundance of perspectives from which to conduct such …

Is Free Trade "Free?" Is It Even "Trade?" Oppression And Consent In Hemispheric Trade Agreements, Frank J. Garcia

Frank J. Garcia

In order for free trade as a policy to deliver fully on its social promise, it must be both “free” and “trade.” In fact, it must be free, in the sense of voluntary, to be trade at all. In other words, for normative and practical reasons, free trade requires that global economic relations be structured through agreements which reflect the consent of those subject to them. The neoliberal trading system today only imperfectly lives up to this obligation. In this essay, I will examine the role of consent in trade agreements, drawing on examples from CAFTA as representative of important …

Nafta And The Creation Of The Ftaa: A Critique Of Piecemeal Accession, Frank J. Garcia

Frank J. Garcia

No abstract provided.

The Moral Hazard Problem In Global Economic Regulation, Frank J. Garcia

Frank J. Garcia

Global regulation of international business transactions presents a particular form of the moral hazard problem. Global firms use economic and political power to manipulate state and state-controlled multilateral regulation to preserve their opportunity to externalize the social costs of global economic activity with impunity. Unless other actors can effectively counter this at the national and global regulatory levels, globalization re-creates the conditions for under-regulated or “robber baron” capitalism at the global level. This model of economic activity has been rejected at the national level by the same modern democratic capitalist states which currently dominate globalization, creating a crisis of legitimacy …

Evaluating Imf Crisis Prevention As A Matter Of Global Justice, Frank J. Garcia

Frank J. Garcia

No abstract provided.

Trade And Justice: Linking The Trade Linkage Debates, Frank J. Garcia

Frank J. Garcia

No abstract provided.

Save The Economy: Break Up The Big Banks And Shape Up The Regulators, Charles W. Murdock

Charles W. Murdock

Save the Economy: Break Up the Big Banks and Shape Up the Regulators

The U.S. economy is still reeling from the financial crisis that exploded in the fall of 2008. This article asserts that the big banks were major culprits in causing the crisis, by funding the non-bank lenders that created the toxic mortgages which the big banks securitized and sold to unwary investors. Paradoxically, banks which were then too big to fail are even larger today.

The article briefly reviews the history of banking from the Founding Fathers to the deregulatory mindset that has been present since 1980. It …

Understanding Csr: An Empirical Study Of Private Self-Regulation, Benedict Sheehy

Benedict Sheehy

Abstract: The article is a study of an important burgeoning form of regulation—private self-regulation—in the area of Corporate Social Responsibility (CSR). Rather than taking a purely theoretical approach or a social scientific study relying publicly reported data, the article addresses the issue by way of interview based case studies. As a study in regulation it clarifies the difference between various types of self-regulation, trade associations’ codes as private self-regulation and government sponsored self-regulation. This distinction hampers efforts to understand the important aspects of motivation and compliance. This study provides empirical examination of compliance in private self-regulation. Given the impact and …

The Giants Among Us, Robin Feldman, Thomas Ewing

Robin C Feldman

The patent world is undergoing a change of seismic proportions. A small number of entities have quietly amassed vast treasuries of patents. These are not the typical patent trolls that we have come to expect. Rather, these entities have participants such Apple, Google, Microsoft, Sony, the World Bank, and non-profit institutions. The largest and most secretive of these has accumulated a staggering 30,000-60,000 patents.

Investing thousands of hours of research and using publicly available sources, we pieced together a detailed picture of these giants and their activities. We consider the potential positive effects, including facilitating rewards for forgotten inventors, creating …

Electromagnetic Pulse And The U.S. Food Security Paradigm: Assumptions, Risks, And Recommendations, Maximilian Leeds

Maximilian Leeds

This paper analyzes the systemic dangers posed to the U.S. economy by an electromagnetic pulse (EMP), either naturally occurring or maliciously generated, from a food security perspective. Section I examines the modern structure of the U.S. food supply chain, analyzing the just-in-time international distribution model and criticizing it as vulnerable to systemic shock and cascade failure. Section II examines the function and history of the electromagnetic pulse, assesses its potential to serve as a catalyst for systemic breakdown in the domestic food supply chain, and explores the current state of food security planning in the United States pertaining to this …

The Case Against The Dodd-Frank Act’S Living Wills: Contingency Planning Following The Financial Crisis, Nizan Geslevich Packin

Nizan Geslevich Packin

The Dodd-Frank Act’s “living will” requirement mandates that systemically important financial institutions develop wide-ranging strategic analyses of their business affairs, and submit comprehensive contingency plans for reorganization or resolution of their operations to regulators. The goal is to mitigate risks to the financial stability of the US and encourage last-resort planning, which will allow for a rapid and efficient response in the event of an emergency. Beyond the general framework set forth in the Dodd-Frank Act, very little is known about living wills; no legal literature currently exists on what the concept entails, and regulators have not yet created any …

Immigration And Social Solidarity In A Time Of Crisis: The Welfare State And Integration, David Abraham

David Abraham

Very suddenly a cloud has settled over the immigration regimes of the European welfare states as well as the United States. Confidence in the ability to integrate and the value of integrating newcomers into a system of legal and social solidarity has waned. The weakening of both liberal civic nationalism and secular constitutional patriotism has unsettled national identities and undermined legal reforms intended to facilitate the inclusion of immigrants, especially Muslims. The road ahead will be very difficult for both the welfare state and immigrants. More forceful integration policies might be better for sustaining the welfare state, but individual liberties …

No More Abuse: The Dodd-Frank And Consumer Financial Protection Act's "Abusive" Standard, Tiffany S. Lee

Tiffany S Lee

The Dodd-Frank Wall Street Reform and Consumer Financial Protection Act creates the new Bureau of Consumer Financial Protection. This consumer watchdog will be responsible for the most powerful consumer protections in American history. Under section 1031(d) of the Act, the Bureau may ban acts and practices that are unfair, deceptive, or abusive. While the unfair and deceptive standards have existed for some time, “abusive” is a relatively new legal standard with limited jurisprudential history. Thus, ironically, critics assert that the inclusion of the abusive standard is itself an abuse of legislative power. This Article asserts that despite some criticism to …

Implementation Of Title Vii Of The Wall Street Reform And Consumer Protection Act. Hearing Before The United States Senate, Committee On Agriculture, Nutrition And Forestry - 112th Cong., 1st Sess., Michael Greenberger

Michael Greenberger

The Relationship of Unregulated OTC Derivatives to the Meltdown. It is now accepted wisdom that it was the non-transparent, poorly capitalized, and almost wholly unregulated over-the-counter (―OTC‖) derivatives market that lit the fuse that exploded the highly vulnerable worldwide economy in the fall of 2008. Because tens of trillions of dollars of these financial products were pegged to the economic performance of an overheated and highly inflated housing market, the sudden collapse of that market triggered under-capitalized or non-capitalized OTC derivative guarantees of the subprime housing investments. Moreover, the many undercapitalized insurers of that collapsing market had other multi-trillion dollar …

Quo Vadis Wto? The Threat Of Trips And The Biodiversity Convention To Human Health And Food Security, Kojo Yelpaala

Kojo Yelpaala

Abstract Just a few years following the coming into force of the World Trade Organization (WTO) and the Trade Related Aspects of Intellectual Property Rights (TRIPS) Agreements, the risks they posed to human health and food security became self-evident. This problem has been acknowledged by the WTO in the Doha Declaration, by other United Nations Organs and commentators. Joined at the hip the WTO and TRIPS system, as implemented, seems to have aggravated the severe and debilitating disease burden and food insecurity of many of its member developing countries that existed prior to TRIPS. Although the WTO and its Council …

Capture In Financial Regulation: Can We Channel It Toward The Common Good?, Lawrence G. Baxter

Lawrence G. Baxter

Abstract

“Regulatory capture” is central to regulatory analysis yet is a troublesome concept. It is difficult to prove and sometimes seems refuted by outcomes unfavorable to powerful interests. Nevertheless, the process of bank regulation and supervision fosters a closeness between regulator and regulated that would seem to be conducive to “capture” or at least to fostering undue sympathy by regulators for the companies they oversee. The influence of very large financial institutions has also become so great that financial regulation appears to have become excessively distorted in favor of these entities and to the detriment of many other legitimate interests, …

The Dodd-Frank Wall Street Reform And Consumer Protection Act: What Caused The Financial Crisis And Will Dodd-Frank Succeed In Preventing Future Crises?, Charles W. Murdock

Charles W. Murdock

Summary: The Dodd-Frank Wall Street Reform and Consumer Protection Act: What Caused the Financial Crisis and Will Dodd-Frank Succeed in Preventing Future Crises?

We are still experiencing the devastating impact of the financial crisis which came to a head on September 18, 2008 when Secretary Paulson told Congressional leaders that “[u]nless you act, the financial system of this country and the world will melt down in a matter of days.”

To prevent future crises of this magnitude, last year Congress enacted the Dodd-Frank Wall Street Reform and Consumer Protection Act. However, this year, legislation has already been introduced to repeal …

The Desire For Whiteness: Can Law And Economics Explain It?, Shilpi Bhattacharya

Shilpi Bhattacharya

This paper provides a new theoretical perspective on colorism by considering it from an economic point of view. I rely on three theories of law and economics that explain racial discrimination. While critiquing these theories, I also extend them to evaluate colorism. This is challenging because these theories correlate race with skin color. I use the “desire for whiteness” (DFW) as a tool for analyzing these theories and as a fundamental characteristic that distinguishes racism from colorism. This paper studies the cross-cultural applicability of these theories from beyond the traditional American labor market (ALM) to the Indian arranged marriage ‘market’ …

Using Experimental Economics To Understand Competition, Bart Wilson

Bart J. Wilson

No abstract provided.

Sailing A Sea Of Doubt: A Critique Of The Rule Of Reason In U.S. Antitrust Law, Jesse W. Markham Jr.

Jesse Markham

The purpose of the article is to offer a critique of the rule of reason, tracing its disintegration from its original articulation 100 years ago in Standard Oil Co. v. United States, 221 U.S. 1, 60 (1911). The article then describes a construct for restoring transparency and content to the rule of reason. The rule of reason is the default standard for assessing restraints under the Sherman Act. The role for the rule of reason has expanded in recent years as the Supreme Court has reversed a number of per se rules, thus relegating additional categories of restraints to the …

The Implications Of A Jeopardy! Computer Named Watson: Beating Corporate Boards Of Directors At Fiduciary Duties?, Roger M. Groves

Roger M. Groves

Millions of documents, including five million messages, termed electronically stored information (“ESI”) from the Enron litigation have provided an opportunity for software developers to create software that analyzes ESI for behaviors of computer users in more provocative and innovative ways than previously encountered. The law is struggling to clarify e-discovery rules, but the ambiguities provide an opportunity for counsel to manipulate or take advantage of forensic investigations. In this article, the author examines the potential exploitation of e-discovery forensic tools by shareholders of a corporation that suspect a breach of fiduciary duties by members of the board of directors.

A Radical Route To Funding Urban Revitalization: Profitable Philanthropy Through Limited Liability Companies And A Market-Based Return On Investments, Roger M. Groves

Roger M. Groves

This article provides an incentive-laden model for increasing equity investments into urban communities. As stated in the article: “The issue posed in this article is simple. Why should we restrict the return on investment of those we beg to invest in charitable causes? The answer is far more complicated.” This involves the creative use of limited liability companies as joint venture vehicles between private foundations and for-profit entities and individuals. Specific amendments to existing regulations are also crafted. From research to date, there is no scholarly publication that uses such a model to suggest nonprofit organizations should have the ability …