Law Commons^™

The Need For Self Regulation And Alternative Dispute Resolution To Moderate Consumer Perceptions Of Perceived Risk With Internet Gambling, Rohan Miller

UNLV Gaming Research & Review Journal

The legislative gaps in international eCommerce and specifically in the gambling industry mean that many consumers face the market condition of caveat emptor (let the buyer beware). In terms of consumer psychology, caveat emptor increases consumer perceptions of risk and slows the diffusion of Internet gambling. This paper discusses the specific risks associated with Internet gambling and presents an industry structure designed to off-set consumer perceptions of perceived risk through industry self regulation and alternative dispute management techniques.

Responses To Systemic Risk After The Global Financial Crisis: Canada And New Zealand, Nan Seuffert

Professor Nan Seuffert

This paper considers the responses of two jurisdictions to systemic risk identified as contributing to the global financial crisis (GFC). Canada and New Zealand are studied as two jurisdictions that both weathered the global financial crisis relatively well. Both have recently proposed new national authorities for the regulation and enforcement of securities: the Canadian Securities Regulation Authority and the Financial Markets Authority (New Zealand). Nevertheless, the proposals and the responses for new national authorities reveal that the two countries view the GFC and the appropriate responses quite differently. This paper analyses the appropriateness of the two responses.

The Basel Iii Liquidity Coverage Ratio And Financial Stability, Andrew W. Hartlage

Michigan Law Review

Banks and other financial institutions may increase the amount of credit available in the financial system by borrowing for short terms and lending for long terms. Though this "maturity transformation" is a useful and productive function of banks, it gives rise to the possibility that even prudently managed banks could fail due to a lack of liquid assets. The financial crisis of 2007-2008 revealed the extent to which the U.S. financial system is exposed to the risk of a system-wide failure from insufficient liquidity. Financial regulators from economies around the world have responded to the crisis by proposing new, internationally …

American Parent Bank Liability For Foreign Branch Deposits: Which Party Bears Sovereign Risk?, Adam Telanoff

Pepperdine Law Review

No abstract provided.

Contingency Enhancements In Attorney Fee Cases: City Of Burlington V. Dague, The End Of Merit Systems Protection Board's Struggle To Understand And Apply Delaware Valley Ii , Cameron P. Quinn, Katharine A. Klos

Pepperdine Law Review

No abstract provided.

Outsourcing Regulation: How Insurance Reduces Moral Hazard, Omri Ben-Shahar, Kyle D. Logue

Michigan Law Review

This Article explores the potential value of insurance as a substitute for government regulation of safety. Successful regulation of behavior requires information in setting standards, licensing conduct, verifying outcomes, and assessing remedies. In various areas, the private insurance sector has technological advantages in collecting and administering the information relevant to setting standards and could outperform the government in creating incentives for optimal behavior. We explore several areas that are regulated more by private insurance than by government. In those areas, the role of the law diminishes to the administration of simple rules of absolute liability or no liability, and affected …

A Financial Economic Theory Of Punitive Damages, Robert J. Rhee

Michigan Law Review

This Article provides a financial economic theory of punitive damages. The core problem, as the Supreme Court acknowledged in Exxon Shipping Co. v. Baker, is not the systemic amount of punitive damages in the tort system; rather it is the risk of outlier outcomes. Low frequency, high severity awards are unpredictable, cause financial distress, and beget social cost. By focusing only on offsetting escaped liability, the standard law and economics theory fails to account for the core problem of variance. This Article provides a risk arbitrage analysis of the relationship between variance, litigation valuation, and optimal deterrence. Starting with settlement …

Paradox In Preventing And Promoting Torture: Marginalising 'Harm' For The Sake Of Global Ordering: Reflections On A Decade Of Risk/Security Globalisation, Mark Findlay

Research Collection Yong Pung How School Of Law

The ultimate result of globalisation is that as the world setting is compressed there is an intensification of consciousness towards global interests, such as selective ordering, running parallel with strongly influential autonomous interests of the nation state and regional concerns. However, as risk and security disproportionately motivate globalisation, dominant nation state interests (which are at the heart of what operationalises global hegemony) become the prevailing measure of global ordering. Attitudes to ‘harm’ converge around these sectarian interests from the local to the global. As such, the need to torture, it is logically and even ‘legally’ argued, to better ensure domestic …

Slides: Envirofit: Making The World Fit For Humanity, Jessica Alderman

2012 Energy Justice Conference and Technology Exposition (September 17-18)

Presenter: Jessica Alderman, Director, ENVIROFIT

15 slides

The Federal Reserve As Last Resort, Colleen Baker

University of Michigan Journal of Law Reform

The Federal Reserve, the central bank of the United States, is one of the most important and powerful institutions in the world. Surprisingly, legal scholarship hardly pays any attention to the Federal Reserve or to the law structuring and governing its legal authority. This is especially curious given the amount of legal scholarship focused on administrative agencies that do not have anywhere near as critical a domestic and international role as that of the Federal Reserve. At the core of what the Federal Reserve does and should do is to conduct monetary policy so as to safeguard pricing, including that …

The Disjunction Between Prevention And Compensation Of Hip Fractures Among Elderly Citizens: The Law's Role In Creating Ex Ante Incentives, Janis Sarra

Marquette Elder's Advisor

This article examines the relationship between the compensation for and the prevention of hip fractures among the growing population of seniors in Canada. Sarra postulates that the current system expends funds on liability protection that would be better spent on prevention. Options explored are no-fault compensation, redirecting legal resources, negotiated risk, and adjust[ing] the tax base to ensure that there are sufficient resources to support elderly individuals.

Forward Contracts - Prohibitions On Risk And Speculation Under Islamic Law, Nicholas C. Dau-Schmidt

Indiana Journal of Global Legal Studies

Forward contracts allow buyers and sellers of goods to reduce risk by contracting for sale at a predetermined price and quantity prior to the actual exchange of goods and payment. While forward contracts are extensively used in the Western world without restriction, those who adhere to Islamic law are often constrained by principles intended to reduce risk, gambling, and usury. These principles can prove overly restrictive; however, Islamic law restrictions also illuminate the problems associated with the overly permissive Western system in which speculators contract in a manner tantamount to gambling-a problem associated with the recent financial crisis. This Note …

Sublicensing From A Distressed Company: Are You Placing Your Future In The Debtor's Hands?, Michelle M. Harner, David A. Beck

Michelle M. Harner

No abstract provided.

Book Review: The Basics Of Information Security: Understanding The Fundamentals Of Infosec In Theory And Practice, Katina Michael

Professor Katina Michael

Dr Jason Andress (ISSAP, CISSP, GPEN, CEH) has written a timely book on Information Security. Andress who is a seasoned security professional with experience in both the academic and business worlds, categorically demonstrates through his book that underlying the operation of any successful business today is how to protect your most valuable asset- “information”. Andress completed his doctorate in computer science in the area of data protection, and presently works for a major software company, providing global information security oversight and performing penetration testing and risks assessment.

Gender Factor In The Insurance Law: Recent Development Of The Ecj In Context With The U.S. Approach, Vadim Mantrov

Vadim Mantrov

This essay discusses recent development of the Court of Justice of the European Union (ECJ) on lawfulness of the use of the gender factor in calculation of insurance premiums and benefits. After summarizing effective regulation of the United States and the European Union, the essay provides not only relevant facts and reasoning of the ECJ but also critical review of this reasoning and reveals differences of approaches between the U.S. Supreme court and the ECJ. Still, it concludes that the ECJ left door open for possible adaptations for lawfulness of the use of gender factor in future.

S12rs Sgr No. 5 (Traffic Lights), Pace

Student Senate Enrolled Legislation

No abstract provided.

Gender Factor In The Insurance Law: Recent Development Of The Ecj In Context With The U.S. Approach, Vadim Mantrov

Vadim Mantrov

This essay discusses recent development of the Court of Justice of the European Union (ECJ) on lawfulness of the use of the gender factor in calculation of insurance premiums and benefits. After summarizing effective regulation of the United States and the European Union, the essay provides not only relevant facts and reasoning of the ECJ but also critical review of this reasoning and reveals differences of approaches between the U.S. Supreme court and the ECJ. Still, it concludes that the ECJ left door open for possible adaptations for lawfulness of the use of gender factor in future.

“Technopanics, Threat Inflation, And The Danger Of An Information Technology Precautionary Principle”, Adam Thierer

Adam Thierer

Fear is an extremely powerful motivational force. In public policy debates, appeals to fear are often used in an attempt to sway opinion or bolster the case for action. Such appeals are used to convince citizens that threats to individual or social wellbeing may be avoided only if specific steps are taken. Often these steps take the form of anticipatory regulation based on the precautionary principle.

Such “fear appeal arguments” are frequently on display in the Internet policy arena and often take the form of a full-blown “moral panic” or “technopanic.” These panics are intense public, political, and academic responses …

The Big Banks: Background, Deregulation, Financial Innovation And Too Big To Fail, Charles W. Murdock

Charles W. Murdock

Summary: The Big Banks: Background, Deregulation, Financial Innovation and Too Big to Fail

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 …

Competition And Crisis In Mortgage Securitization, Michael N. Simkovic

Michael N Simkovic

U.S. policymakers often treat market competition as a panacea. However, in the case of mortgage securitization, policymakers’ faith in competition is misplaced. Competitive mortgage securitization has been tried three times in U.S. history - during the 1880s, the 1920s, and the 2000s - and every time it has failed. Most recently, competition between mortgage securitizers led to a race to the bottom on mortgage underwriting standards that ended in the late 2000s financial crisis. This article provides original evidence that when competition was less intense and securitizers had more market power, securitizers acted to monitor mortgage originators and to maintain …

High-Frequency Trading: Should Regulators Do More, Matt Prewitt

Michigan Telecommunications & Technology Law Review

High-Frequency Trading ("HFT") is a diverse set of algorithmic trading strategies characterized by fast order execution. Its importance in international markets has increased vastly in recent years. From a regulatory perspective, HFT presents difficult and partially unresolved questions. The difficulties stem partly from the fact that HFT encompasses a wide range of trading strategies, and partly from a dearth of unambiguous empirical findings about HFT's effects on markets. Yet certain important conclusions are broadly accepted. HFT can increase systemic risk by causing or exacerbating events like the "Flash Crash" of May 6, 2010. HFT can also enable market manipulators to …

Abortion And Informed Consent: How Biased Counseling Laws Mandate Violations Of Medical Ethics, Ian Vandewalker

Michigan Journal of Gender & Law

If we slightly change the facts of the story about the discouraging doctor, it becomes a story that happens every day. Abortion patients face attempts to discourage them from terminating their pregnancies like those the imaginary doctor used, as well as others-and state laws mandate these attempts. While the law of every state requires health care professionals to secure the informed consent of the patient before any medical intervention, over half of the states place additional requirements on legally effective informed consent for abortion. These laws sometimes include features that have ethical problems, such as giving patients deceptive information. Unique …

Application Of The Concept Of Project Finance In Iraq - A Comparative And Analytical Study, Faris K. Nesheiwat

Ferris K Nesheiwat

Many scholars and experts have addressed the issue of project finance, but one area that remains without detailed examination is its legal treatment under the legal systems of developing countries. The legal concepts applied under project finance are Western and are not necessarily identical to or compatible with legal concepts in Middle Eastern countries in general or Iraq in particular. In that sense, project finance is a transplanted legal concept when examined in the Middle Eastern legal framework. Although this Paper tackles the legal and strategic issues arising from the use of project finance in Iraq, its analysis and comparative …

The Meaning Of The Market Myth, Benjamin Means

Michigan Business & Entrepreneurial Law Review

This Book Review contends that the perfectly rational market may be a myth, not just in the sense of a false or over-simplified account of reality, but also in the deeper, anthropological sense of cultural explanation. Part I describes how rational-market theories were developed by financial economists and applied to Wall Street, sometimes without adequate appreciation for the difference between simplified economic models and real-world behavior. Part II contends that if the rational-market theory has met with acceptance that outstrips its empirical support, the favorable reception may be explained in part by the theory’s congruence with broader normative views about …

Risk Magnified: Standing Under The Statist Lens, Mary D. Fan

Articles

Why some harms count before the courts and others do not is a matter of acute expressive and practical impact. Judicial refusal to see claimed injuries is an effective denial of legal personhood and a bar from powerful judicial machinery. The issue of “erratic, even bizarre” judicial recognition of supplicants vexed Professor Joseph Vining as early as 1978. Recent scholarship argues that injuries are seen through a subjective lens, reflecting the relative privilege of the judiciary and their concomitant difficulties in perceiving injuries to minorities and the poor. This is a troubling contention. So long as another, objective explanation remains, …

Is A Substantive, Non-Positivist United States Environmental Law Possible?, Dan Tarlock

Michigan Journal of Environmental & Administrative Law

U.S. environmental law is almost exclusively positive and procedural. The foundation is the pollution control and biodiversity conservation statutes enacted primarily between 1969–1980 and judicial decisions interpreting them. This law has created detailed processes for making decisions but has produced few substantive constraints on private and public decisions which impair the environment. Several substantive candidates have been proposed, such as the common law, a constitutional right to a healthy environment, the public trust, and the extension of rights to fauna and flora. However, these candidates have not produced the hoped for substantive law. Many argue that a substantive U.S. environmental …

Shadow Banking, Financial Markets, And The Real Estate Sector, Steven L. Schwarcz

Faculty Scholarship

This is a relatively brief “firestarter” talk prepared by the author for the World Economic Forum’s Industry Partnership Strategists Meeting 2012 (held on October 3, 2012) on transformation of the real estate sector in light of ongoing shifts in the financial markets and broader global trends.

Fundamental Forces Driving United States And International Financial Regulations Reform, Lawrence G. Baxter

Faculty Scholarship

Multiple forces create a systemic crisis of the proportions of the Global Financial Crisis of 2008. Global and domestic financial reform is a difficult and perplexing task, one that is likely to take many years, and one that will surely continue to be shaped by a diverse range of forces. Recent measures remain incomplete and in some cases are even proving to be misdirected. This article considers seven fundamental forces shaping actions on future reform, specifically the (1) long term impact of the Crisis (and all financial crises); (2) increase in the “financialization” of the global economy, seemingly disproportionate to …

Shadow Banking, Financial Markets, And The Real Estate Sector, Steven L. Schwarcz

Faculty Scholarship

This is a relatively brief “firestarter” talk prepared by the author for the World Economic Forum’s Industry Partnership Strategists Meeting 2012 (held on October 3, 2012) on transformation of the real estate sector in light of ongoing shifts in the financial markets and broader global trends.

Statistical Knowledge Deconstructed, Kenneth Simons

Faculty Scholarship

The law frequently distinguishes between individualized knowledge (awareness that one’s act will harm a particular victim, e.g., driving through an intersection while aware that one’s automobile is likely to injure a pedestrian) and statistical knowledge (awareness that one’s activity or multiple acts will, to a high statistical likelihood, harm one or more potential victims, e.g., proceeding with a large construction project that one confidently predicts will result in worker injuries). Under tort and criminal law doctrine, acting with individualized knowledge is ordinarily much more difficult to justify, and, if unjustified, much more culpable, than acting with statistical knowledge. Yet the …