Business Organizations Law Commons^™

Uncertainty, Dangerous Optimism, And Speculation: An Inquiry Into Some Limits Of Democratic Governance, Lynn A. Stout

Cornell Law Faculty Publications

People are often optimistic. Nearly fifty percent of marriages end in divorce, but one survey found that 100 percent of individuals planning to get married believed they would never get divorced. Most people think they drive better than the average driver, and at one university, ninety-four percent of professors placed themselves in the top fifty percent in terms of teaching skills. We often seem to think we are like the youth of Garrison Keillor’s fictional hometown Lake Wobegon, where “all the children are above average.”

This is not always a bad thing. Optimism can be advantageous. Without optimism, Columbus might …

Using Nonprofits To Serve Charitable Goals Of Social Businesses In The United States: Circumventing The Lack Of Recognition Of The Social Business Model In The Federal Tax Code, Gautam Jagannath

Pace Law Review

This Article considers the possibility of reincorporating a social business as a tax-exempt nonprofit. An analysis of the costs and benefits is performed with an eye toward federal tax law. First, I discuss the potential problems with running a social business as an exempt nonprofit. There are federal regulations that get in the way of making this a savvy decision. Second, I posit that a social business can benefit from devising a parallel exempt organization with similar or identical charitable goals. There are a few ways to do this and I consider the pros and cons. Finally, I consider the …

Codes Of Corporate Governance: A Review, Nolan Haskovec

Ira M. Millstein Center for Global Markets and Corporate Ownership

The U.S. was one of the first nations in the world to concern itself with the governance of its publicly-listed corporations. But it stopped well short of developing authoritative general standards of corporate governance. By contrast, many of the world’s other markets have by now agreed to some sort of ‘official’ principles for the governance of their quoted companies.

A key reason often cited for why the U.S. lacks a single, authoritative national code of corporate governance2 is the general resistance to centralized regulation of corporate law, which is subject to state rather than federal statutes. But several other major …

Vive La Petite Difference: Camp, Obama, And Territoriality Reconsidered, Reuven S. Avi-Yonah

Articles

The recent tax reform proposals by House Ways and Means Committee Chair David Camp, R-Mich., and by President Obama seem to offer starkly contrasting visions of how to reform the taxation of foreign-source income earned by U.S.-based multinational enterprises.1 Both acknowledge the problem, which is that U.S.-based MNEs currently have more than $1 trillion of ‘‘permanently reinvested’’ income offshore, which they cannot bring back to the U.S. without incurring a 35 percent tax penalty. However, they seem to offer radically different solutions: Under the Camp proposal, a participation exemption will enable U.S.-based MNEs to bring back the income without paying …

Regulation Fd Will Result In Poorer Disclosure And Increased Market Volatility, Joanna E. Barnes

Pepperdine Law Review

No abstract provided.

Corporate Criticism On The Internet: The Fine Line Between Anonymous Speech And Cybersmear, Scot Wilson

Pepperdine Law Review

No abstract provided.

Federal Income Taxation Of Business Enterprises: Cases, Statutes, Rulings, Sergio Pareja, Richard A. Westin, Ricahrd C.E. Beck

Faculty Book Display Case

This fourth edition covers the basics of the federal income taxation of partnerships and corporations including the taxation of LLCs, LLPs and S corporations. In addition, it alludes to a short list of other business enterprises. It is designed to be taught as two major components: partnerships and corporations. Both components use the traditional "cradle-to-grave" approach. Because of their practical importance, the book makes reference to Social Security taxes and estate taxes. There is no discussion of State income taxes.

Although the book is comparatively short, the materials are thorough and are heavily supplemented with problems.

The cases have been …

Front Matter

Michigan Business & Entrepreneurial Law Review

No abstract provided.

Business Courts And Interstate Competition, John F. Coyle

William & Mary Law Review

Over the past two decades, specialized trial courts that hear business disputes primarily or exclusively have been established in nineteen states. To explain the recent surge of interest in these courts, policymakers and scholars alike have cited the process of interstate competition. Specifically, these commentators have argued that business courts serve, among other purposes, to attract out-of-state companies to expand their business, reincorporate, or litigate disputes in the jurisdiction that created the business court.

This Article critically evaluates each of these theories. It argues first that business courts do not serve to attract companies from other states because business expansion …

Were "It" To Happen: Contract Continuity Under Euro Regime Change, Robert C. Hockett

Cornell Law Faculty Working Papers

One way or another, the European Monetary Union (EMU) is apt to endure. The prospect of continuation under the precise contours of the regime as we presently find it, however, is anything but certain. Hence many investors and other actual or prospective contract parties are likely to remain skittish until matters grow clearer. This skittishness, importantly, can itself hamper the prospect of expeditious European recovery. Addressing particular sources of ongoing uncertainty about EMU prospects can itself therefore aid in the project of recovery.

This Essay accordingly aims to impose structure upon one particular, and indeed particularly complex, source of uncertainty …

How Close Is “Too Close”, Lana Ciaramella

Pace Intellectual Property, Sports & Entertainment Law Forum

Lana Ciaramella writes an article on trade dress infringement. Her article discusses the standards of trade dress infringement, how they are applicable to private label products and how the courts have modified their view of trade dress infringement over time. She focuses on the landmark decision in McNeil Nutritionals, LLC v. Heartland Sweetners, which set a new precedent for treatment of trade dress infringement by private label manufacturers of brand name products.

Profile - The Gates Foundation Leed Platinum Seattle Headquarters, James Hagy

Rooftops Project

In this first article in his series looking at not-for-profits as urban neighbors, Professor James Hagy, Director of The Rooftops Project, visits with the Gates Foundation at its recently opened LEED Platinum Seattle headquarters campus.

America's Energy Dependency: Will Government Regulation Of Caffeine Bring The Caffeine Companies To A Crash?, Rakesh J. Parikh

William & Mary Business Law Review

In light of Americans’ growing love affair with caffeinated products, this Note considers not only the possibility of future regulation of those products, but also the effect that regulation would have on caffeinated product-producing companies. While there is no certainty that such regulation is in our future, the regulation of market-similar products like tobacco and alcohol, and regulations abroad on heavily caffeinated drinks, suggest American regulation of caffeinated products to be a distinct possibility. This would be a serious concern for caffeine companies, who could face reduced access to target markets as a result of FDA-imposed limitations, whether by age …

Tort Law—Tortious Interference With Business Expectancy – A Trap For The Wary And Unwary Alike, Larry Watkins

University of Arkansas at Little Rock Law Review

Despite remaining stable and unchanged over the last decade, tortious interference has also remained problematic in Arkansas. Although tortious interference with contract in Arkansas suffers from many ailments, this note focuses on interference with business expectancy, discussing interference with contract only as necessary. Specifically, the note argues that tortious interference in Arkansas should be formally separated into two distinct rules—interference with contract and interference with business expectancy—in order to keep courts from mixing terms and standards from both rules when addressing only one cause of action. This note further proposes that the improper element of tortious interference in Arkansas should …

The Lawyer As Truth-Teller: Lessons From Enron, Thomas G. Bost

Pepperdine Law Review

The teaching and practice of law assume and are shaped by the standard vision of lawyer conduct and ethical responsibility. Under the standard vision, which is reflected in the various codes of professional responsibility governing lawyers, the lawyer is a "neutral partisan" for his or her client: "neutral" in that he does not let his moral values affect his actions on behalf of his client; "partisan" in that she does whatever she can within the limits of the law to advance her client's stated interests. Because the standard vision is readily understood by most lawyers as imposing a code of …

An American Look At Zappers: A Paper For The Physikalisch-Technische Bundesanstalt, Revisionssicheres System Zur Aufzeichnung Von Kassenvorgängen Und Messinformationenthe, Richard Thompson Ainsworth

Faculty Scholarship

The common observation in the U.S. is that enforcement against technology-facilitated sales suppression has fallen through an intra-jurisdictional crack. Neither federal nor state auditors systemically target this area. But this is changing, and the change is coming from the state side.

This paper has two main parts. First, it summarizes the current state of sales suppression enforcement in the U.S. Secondly, it reviews the international solutions that are attracting the most U.S. attention. A conclusion indicates likely directions for U.S. enforcement.

Georgia is the first state to take action. On May 3, 2011 Georgia added code section 16-9-62 to Georgia …

We Talk, You Listen: Should Shareholders' Voices Be Heard Or Stifled When Nominating Directors? How The Proposed Shareholder Director Nomination Rule Will Contribute To Restoring Proper Corporate Governance, Rose A. Zukin

Pepperdine Law Review

No abstract provided.

The Roberts Court Gets Down To Business: The Business Cases, Kenneth W. Starr

Pepperdine Law Review

No abstract provided.

Say On Pay And The Sec Disclosure Rules: Expressive Law And Ceo Compensation , Sandeep Gopalan

Pepperdine Law Review

The debate over the lack of correlation between CEO compensation and performance has caused a divide amongst corporate law scholars. Proponents of intervention have predictably welcomed the legislative activity and have called for more. This article argues that the legislative and regulatory interventions by the state are in furtherance of the expressive functions of the law, and that even in the absence of sanctions such expressive laws can have an affect on behavior. It argues that while legislative and regulatory actions can express certain norms, they are ultimately unlikely to be of much help in behavior modification unless accompanied by …

Summary Of Weddell V. H2o, Inc., 128 Nev. Adv. Op. No. 9, Matthew Vantusko

Nevada Supreme Court Summaries

The Court considered an appeal from an action seeking contract, tort, and declaratory relief.

When “Not Getting Caught” Is Not Enough: Preventing Foreign Corrupt Practices Act Violations And Liability In International Project Finance, Clinton R. Long

Pace International Law Review Online Companion

Reinhard Siekaczek, a skeptical former accountant of Siemens A.G., expressed little optimism that Siemens’ violations of German law and the U.S. Foreign Corrupt Practices Act’s (“FCPA”) prohibitions against bribing foreign officials would deter others in a world full of corruption. Siekaczek states, “[p]eople will only say about Siemens that they were unlucky and that they broke the 11th commandment. The 11th commandment is: ‘Don’t get caught.’” At Siemens, Siekaczek participated in large-scale bribery by helping maintain a budget of tens of millions of dollars per year that was dedicated to bribing foreign officials, what one bureaucrat described as the “Siemens’ …

Antitrust Rulemaking As A Solution To Abuse On The Standard-Setting Process, Adam Speegle

Michigan Law Review

While many recognize the critical role that technology plays in modern life, few appreciate the role that standards play in contributing to its success. Devices as prevalent as the modern laptop computer for example, may be governed by over 500 interoperability standards, regulating everything from the USB drive to the memory chip. To facilitate adoption of such standards, firms are increasingly turning to standard-setting organizations. These organizations consist of members of an industry who agree to abide by the organization's bylaws, which typically regard topics such as patent disclosure and reasonable licensing. Problems arise, however, when members violate these bylaws …

Mutiny By The Bounties? The Attempt To Reform Wall Street By The New Whistleblower Provisions Of The Dodd-Frank Act, Geoffrey Christopher Rapp

BYU Law Review

No abstract provided.

Whistling Rogues: A Comparative Analysis Of The Dodd–Frank Whistleblower Bounty Program, Patrick A. Barthle Ii

Washington and Lee Law Review

No abstract provided.

Choosing Punishment, Miriam H. Baer

Faculty Scholarship

No abstract provided.

Choice Of Entity Considerations For Charitable Organizations, Terri Lynn Helge

Faculty Scholarship

This article discusses choice of entity issues related to the formation, operation and governance of nonprofit organizations, highlighting the distinctions between charitable organizations formed as charitable trusts and charitable organizations formed as nonprofit corporations. In determining the legal structure for a new nonprofit entity, considerations that need to be taken into account include: (1) ease/speed of formation; (2) limitation of liability for members and directors; (3) financial resources; (4) type and scale of activities to be conducted; (5) governance requirements; (6) capacity to own property and contract; (6) capacity to sue and be sued; (7) liabilities to third parties; (8) …

How Do Start-Ups Obtain Their Legal Services?, Darian M. Ibrahim

Faculty Publications

This essay presents the first empirical study of how rapid-growth start-up companies obtain their legal services, with particular attention to the choice between in-house and outside counsel. Drawing on responses to online surveys of venture-capital-backed start-ups formed between 2006 and 2008, the study tests several hypotheses rooted in economic and entrepreneurship literature. The results show that most start-ups do not employ in-house counsel, with cost considerations and broader coverage offered by outside firms emerging as the primary reasons. In contrast, start-ups that do hire in-house counsel cite their attorneys’ superior understanding of the business, responsiveness, and ability to monitor internal …

Ten Essential Elements Of An Effective Dispute Resolution Program , Stephen F. Gates

Pepperdine Dispute Resolution Law Journal

For an organization with a significant number of outstanding lawsuits and pre-litigation claims, it is important to have a comprehensive and disciplined program of managing disputes to produce optimal outcomes with consistency, effectiveness and cost efficiency. Based on my experience at large, complex industrial companies with well over 2,000 litigation matters outstanding at any time, the effective management of the dispute portfolio requires that each matter be managed effectively and that more matters be resolved each year than the number of new matters that arise. The focus of this article is corporate law departments, but the concepts are applicable to …

The Strategic Relationship Between Ethics And Dispute Resolution: What Every Ceo Should Know, Mary L. Walker, R. Philip Deavel

Pepperdine Dispute Resolution Law Journal

This article advocates that there is a dynamic relationship between a values-based ethics program and a commitment to dispute resolution that can revolutionize the way we think about both. The United States Air Force is a global organization with many relationships, including those with other governments, other federal agencies, corporate contractors and its members and employees. Hence, these concepts are not academic to us-they are the lifeblood that allows us to successfully accomplish our mission. But they also have implications for our corporate partners. Why would we have an interest in how private corporations approach the subjects of ethics and …

Why We Still Litigate, Phillip M. Armstrong

Pepperdine Dispute Resolution Law Journal

The benefits of Alternative Dispute Resolution ("ADR"), particularly mediation, are well documented and often touted. Some of these benefits are: cost savings, confidentiality, preservation of business relationships, finality, better outcomes, and more control. The list goes on, and rightfully so. The Comell/PERC study and the more recent BTI study, among others, have made it clear that corporate America has embraced ADR, particularly mediation, as a preferred means of resolving many disputes. As a long-time member of an in-house law department, I have watched our own management of commercial litigation and claims evolve from a typical "winner takes all" approach to …