Marketing Law Commons^™

Does Private Equity Create Wealth? The Effects Of Private Equity And Derivatives On Corporate Governance, Randall Thomas, Ronald W. Masulis

Vanderbilt Law School Faculty Publications

Private equity has reaped large rewards in recent years. We claim that one major reason for this success is due to the corporate governance advantages of private equity over the public corporation. We argue that the development of substantial derivative contracts and trading has significantly weakened the governance of public corporations and has created a need for financially sophisticated directors and much closer supervision of management. The private equity model delivers these benefits and allows corporations to be better governed, creating wealth gains for investors.

Terroir Vs. Trademarks: The Debate Over Geographical Indications And Expansions To The Trips Agreement, Emily C. Creditt

Vanderbilt Journal of Entertainment & Technology Law

The ever expanding global marketplace and increasing sophistication of consumers has led to a heightened desire for high-quality wines, spirits and food products that derive their unique characteristics from the geographical region from which they originate. The particular geographic identity of a product, known as a "geographical indication" can increase the marketability and value of any number of consumer goods, from wines and spirits to rice and cheese. The desire to protect geographical indications from misappropriation and abuse eventually led to the adoption of the Agreement on Trade-Related Aspects for Intellectual Property Rights (TRIPS Agreement) during the establishment of the …

Internet Retailers And Intertype Competition: How The Supreme Court's Incomplete Analysis In Leegin V. Psks Leaves Lower Courts Improperly Equipped To Consider Modern Resale Price Maintenance Agreements, Daniel B. Nixa

Vanderbilt Journal of Entertainment & Technology Law

In Leegin Creative Leather Products, Inc. v. PSKS, Inc., the U.S. Supreme Court held that resale price maintenance (RPM) agreements are to be judged under the rule of reason. An RPM agreement is an agreement between a manufacturer and retailers stipulating that retailers will charge a certain price for the manufacturer's products. This Note argues that the Supreme Court should have instructed lower courts to consider intertype competition in addition to interbrand and intrabrand competition when evaluating RPM agreements under the rule of reason. Two reasons lead to this conclusion. First, the Internet has invigorated intertype competition and has made …

Voodoo Economics: A Look Abroad For A Supply-Side Solution To America's Campaign-Finance Riddle, Matthew T. Sanderson

Vanderbilt Journal of Transnational Law

The title of this Note "voodoo economics" is, at its core, an analogy: U.S. campaign-finance regulation operates like a price ceiling in the political money marketplace. Political campaigns are financed through money-for-access transactions and campaign-finance regulation caps the level of exchange. Like any other price ceiling, regulation is both effective and flawed. It suppresses the "price" of political money but inherently falls victim to some market players' avoidance activities. This price-ceiling analogy, among other things, makes apparent that many proposals forwarded by pro-regulation and deregulation advocates cannot solve the United States' century-old campaign-finance riddle. Instead, attention should turn to shaping …

The International Effects Of The Adoption Of A Consumption Tax In The United States, Matthew Mcmahan

Vanderbilt Journal of Transnational Law

This Note concludes that through the adoption of a consumption tax the United States will benefit from both short-and long-term gains. This Note presents the advantages of consumption taxes and where relevant, discusses a specific consumption tax proposal--the Fairtax Plan. The Author responds to several critiques of consumption taxation, including whether consumption taxes are disproportionately placed on labor, the existence of efficiency gains, the international effects, increased black market activity, and cross-border tax arbitrage.

Bring It On: The High-Stakes Battle Over Whether The Courts, Congress Or The Fec Should Muzzle Independent "527" Television Advertising, Christopher G. Johnson

Vanderbilt Journal of Entertainment & Technology Law

This Note analyzes possible FEC actions, pending court decisions, and proposed legislation that could once again dramatically change the landscape of political advertising. Section I of this Note examines the BCRA and the Supreme Court's subsequent ruling in McConnell v. FEC that created the environment that caused 527's to flourish. Section II focuses on FEC enforcement of campaign finance laws and examines a pending court case considering whether the FEC acted arbitrarily by failing to require all 527's to register as political committees. Section III considers whether courts or law-makers should require 527's to register as political committees in light …

Explaining The International Ceo Pay Gap: Board Capture Or Market Driven?, Randall Thomas

Vanderbilt Law School Faculty Publications

If we look at convergence through the lens of the Risk Adjustment Theory, then international pay convergence will only occur if U.S. and foreign CEOs' firm-specific risk levels converge. Empirically, this is a difficult claim to test because of the paucity of data available on CEOs' individual wealth levels and stockholdings. The one component we can most easily observe, stock option usage, is presently quite different, with U.S. levels far exceeding those abroad. For the near future, this trend seems likely to continue, making it difficult to forecast convergence any time soon. The international executive pay gap is one of …

A Whole Different Ball Game: Ticket Scalping Legislation And Behavioral Economics?, Jasmin Yang

Vanderbilt Journal of Entertainment & Technology Law

Baseball is the sport most closely intertwined with American culture.' In many ways, the scandals associated with baseball, such as antitrust, segregation, and labor disputes, parallel and reflect the nation's development. In helping to shape the nation's collective identity, baseball's history is a sentimental reminder of a time when people were less concerned with profit and more interested in democratic access. And despite its somewhat tarnished image, many people want to champion and maintain the purity of the game. In jarring contrast, ticket scalpers personify the intersection of America's love for baseball with its love of profit. They represent pure …

Trip-Ping Over Business Method Patents, Vincent Chiappetta

Vanderbilt Journal of Transnational Law

Professor Chiappetta argues that the current effort to expand substantive international patent law harmonization to include business method patenting is ill-conceived and unsupportable. Such patents cannot be justified on the economic incentive grounds supporting the Western regimes. They are not part of the existing TRIPS agreement, and under present circumstances they should not be added. Any future agreement, bi-lateral or multi-lateral (including an extension of TRIPS), must be based on a better calibrated form of protection (less than patent) and should occur only after the persistent normative differences and the distributional consequences of international substantive harmonization have been addressed.

Pop Goes The Commercial: The Evolution Of The Relationship Between Popular Music And Television Commercials, Nora Miles

Vanderbilt Journal of Entertainment & Technology Law

Although the use of new pop songs in commercials is a recent development, the fact that music plays an important role in advertising is certainly not news. Music is and has always been an integral part in nearly all commercial advertising campaigns. Since the advent of radio and television the consumer public has been exposed to marketing through music. In order to understand the implications of the trends in music advertising, this note examines the more traditional schemes of music in advertising. To that end, there are several different routes an advertiser can choose when selecting music for a particular …

The Government Tunes In To Tune Out The Marketing Of Violent Entertainment To Kids, Shannon Mccoy

Vanderbilt Journal of Entertainment & Technology Law

This Note examines the recent investigation conducted by the Federal Trade Commission ("FTC" or "Commission") and its 2001 Follow-Up to that inquiry. The September 2000 Report ("Report") concluded that the entertainment industry intentionally and aggressively advertises both R and PG-13 movies to children under the age of 18. As a solution, the FTC recommended self-regulation by the entertainment industry. The 2001 Follow-Up to the Report ("Follow-Up") found that although the movie industry has made progress, a greater effort must be exerted to successfully eliminate the marketing of violent entertainment to children.' Both the Report and the Follow-Up demonstrate that self-regulation …

End Game: Ex Parte Seizure Process And The Battle Against Bootleggers, Lucas G. Paglia, Mark A. Rush

Vanderbilt Journal of Entertainment & Technology Law

This Article presents a broad overview of the exparte seizure process, what it is and how it can be deployed by trademark owners to shut down counterfeiters. It first discusses the general structure and mechanics of the TCA. It then proceeds to discuss some important areas of practical concern with respect to proceedings under the Act. The Article concludes by providing a hypothetical case study of the ex parte seizure process in action.

Changes In The Ticket Distribution Industry: Is This The Beginning Of The End For Ticketmaster?, Joycelyn Stevenson

Vanderbilt Journal of Entertainment & Technology Law

This Note aims to explore the legal underpinnings of consumer frustration with Ticketmaster and the rest of the ticket distribution industry as it moves into the electronic age. First, this Note introduces Ticketmaster and examines its use of exclusive dealing agreements with local venues. It then discusses the relevant federal antitrust statutes affecting the industry and the market in which distributors operate. It also analyzes the role exclusive dealing agreements play in stifling competition. Next, this Note discusses the challenges--both legal and economic--to the industry's most visible member. It then discusses Ticketmaster as a possible product of competition in light …

Educating Russia's Future Lawyers--Any Role For The United States?, Jane M. Picker, Sidney P. Picker, Jr.

Vanderbilt Journal of Transnational Law

In the wake of the devaluation of the Russian ruble in 1998 and the resulting flight of foreign investment, which was exacerbated by allegations of massive corruption and capital flight at the highest levels of government in 1999, the question of an appropriate role for the United States in helping Russia to establish an environment able to attract and retain foreign and domestic capital, to maintain a viable globally integrated market-based economic system, and to create a stable civil society, is under discussion.

The authors believe that a viable market economy will not flourish in Russia until a more stable …

Efficiencies And Merger Review In Canada, The European Community, And The United States, Mark A.A. Warner

Vanderbilt Journal of Transnational Law

This Article examines economic efficiencies analysis in the merger review processes of Canada, the European Community, and the United States. In recent years, legal counsel, academics, and policymakers have given greater attention to international harmonization and convergence of competition and antitrust law and policy. This trend has been spurred by the increasing acceptance of efficiency-based economics in competition policy generally and in merger policy particularly. The author, nevertheless, asks whether efficiency-based merger analysis also may create new jurisdictional conflicts among national merger enforcement authorities. For instance, a state concerned with its own domestic competitiveness might emphasize domestic efficiency gains in …

The Legal Framework For Private Sector Activity In The Czech Republic, Cheryl W. Gray

Vanderbilt Journal of Transnational Law

In this Article, Dr. Gray discusses the evolving legal framework in the Czech Republic as the government there moves from a socialist to a private market economy. The author traces the major legal developments, including the Republic's establishment of significant private property rights and of a modern commercial code. The author finds that the Republic has made significant strides in developing a private market economy and in facilitating foreign investment. Dr. Gray concludes, however, that the new laws face significant challenges, including a weak and immature judicial system and problems with addressing business failures.

Observations Of A Latvian Practitioner, Valentin Blueger

Vanderbilt Journal of Transnational Law

After having heard so many distinctive speakers, I thought of what might be of interest more specifically on a few issues. You can certainly understand that there is a lot in common among all of the countries of Eastern Europe right now. There are a few topics that were mentioned in every speech. There is privatization, the monopolization of the economy, and the transformation of the system into a free market society.

In the Soviet Union, there has been a very contradictive process going on within the last six months. Everything said before in terms of changing the system appears …

Investing In Czechoslovakia, Richard Sumann

Vanderbilt Journal of Transnational Law

Students once asked the famous British Professor John Maynard Keynes about the long-term effects of his regulatory policies. His answer was that in the long run, we are all dead. We have quite a different philosophy. In the long run, we want to be all better off. And we understand that to be better off, it means the introduction of a market economy and a free, democratic society. Converting the rigid, centrally planned economies of Central and Eastern Europe into flexible, efficient, motivated, market-oriented economies and societies may affect your future. In fact, it will affect Europe and the world …

Green Law-Making: A Primer On The European Community's Environmental Legislative Process, Michael S. Feeley, Peter M. Gilhuly

Vanderbilt Journal of Transnational Law

The birth of the European Common Market marks a new era of multistate environmental regulation that will radically affect commercial activity. This Article examines the European Community's (EC) background, institutions, and legislative process to elucidate how this environmental regime is developing. Following a brief introduction, Part II sets forth the EC's background, presenting its history and the general framework in which its law applies. Part III describes the EC's major institutions. Part IV discusses forms of EC legislation, with an emphasis on the use of directives. Part V considers legislative processes by which the EC enacts laws, including the new …

Franchising And The Collective Rights Of Franchisees, Robert W. Emerson

Vanderbilt Law Review

Assume that you are the franchisee of a nationwide restaurant chain. Your franchisor has acted contrary to what you believe to be in your best interest. For the franchisor, bigger is better: more outlets and discount programs mean higher sales volume and consequently additional franchise fees and royalties, with royalties typically being based on gross sales-not franchisee net profits. You are concerned that the franchisor is oriented more toward expansion than the well-being of existing franchisees. Franchisor assistance is less than you expected, but royalties and other charges seem steep.Facing a strong franchisor that appears not to worry about an …

Icarus And His Waxen Wings: Congress Attempts To Address The Challenges Of Insider Trading In A Globalized Securities Market, John T. Thomas

Vanderbilt Journal of Transnational Law

This Note addresses the globalization of the world financial securities markets and the potential for fraud in these expanded markets. The author considers actual cases of insider trading that have crossed national borders and the enforcement problems such cases raise. The author analyzes the first significant response by the United States Congress to these problems and concludes that the response is inadequate. Congress recognizes the incredible pace of evolution of the world financial markets, but is slow to address this process. The SEC offered serious proposals to Congress--proposals that apparently have bipartisan support--and Congress failed to act on these proposals …

Lender Liability And Arbitration: Preserving The Fabric Of Relationship, Frances E. Freund, Susan D. Gresham, Robert D. Rowe, N. Sue Van Sant Palmer

Vanderbilt Law Review

This Note examines the problem of explosive liability for lenders in lender borrower disputes and considers whether arbitration could be helpful to lenders and borrowers in resolving their disputes. Part II examines the evolution of the Federal Arbitration Act in the Supreme Court cases which have considered the statute's ground of authority and its jurisdictional reach. Part II then focuses on the expanding role of arbitration in substantive areas formerly considered to be nonarbitrable. Part III describes the nature of arbitration and particularly focuses on medical malpractice arbitration for some evidence as to how the process has worked in another …

Industry Self-Regulation And The Useless Concept "Group Boycott", Robert Heidt

Vanderbilt Law Review

A doctor is denied staff privileges at a private hospital after a negative recommendation from the hospital's medical staff. A real estate agent is denied membership in a multiple. listing service by a vote of the current members. A golfer is deemed ineligible to compete in a professional golf tournament by a committee of the Professional Golf Association. A college is refused accreditation by a private accrediting association. Plywood of type three ply one half inch is found not to meet the commercial standard for douglas fir plywood established by the Douglas Fir Plywood Association. A fuel cutoff device is …

European And American Antitrust Regulation Of Pricing By Monopolists, Gregory B. Adams

Vanderbilt Journal of Transnational Law

Article 86 of the Treaty of Rome outlaws any "abuse ... of a dominant position within the common market or a substantial part of it." The EEC prohibition is similar to the developed meaning of "monopolization" in section 2 of the Sherman Act, requiring both market power and improper conduct. This Article analyzes the type of conduct that is considered improper: specifically, the pricing practices that constitute abuse under article 86, or monopolization under section 2.

Article 86 provides examples that help determine what abuse is:

Such abuse may, in particular, consist in:

(a) directly or indirectly imposing unfair purchase …

Market Incentives For Safety, W. Kip Viscusi

Vanderbilt Law School Faculty Publications

In the heated atmosphere generated by inch-high headlines and multimillion-dollar liability suits, two important facts often get lost. First, society's awareness of what ensuring reasonably complete safety would cost rarely matches the intensity of its demands for such assurance. And second, the most powerful forces working to make products and workplaces safer are not the edicts of government but the dynamics of the market. True, there are situations in which the market cannot by itself create effective incentives for safety, but in the vast majority of cases it can-and does. Drawing on his extensive research into the regulation of risk, …

The Resale Price Maintenance Compromise:A Presumption Of Illegality, Michael D. Mckibben

Vanderbilt Law Review

This Note explores several problems with recent RPM decisions: (1) the effect of the per se rule on producers' rights to control their marketing strategies; (2) inconsistent use of the plural action requirement as a foil for avoiding or invoking the per se rule; (3) the suppression of benign or pro-competitive activities because of the rule; (4) the difficulties with free rider marketing; and (5) the obstacles to advice and planning that recent decisions have created. This Note contends that a new standard, a rebuttable presumption against legality, would alleviate most, if not all, problems that the inflexible per se …

The Insider Trading Sanctions Act Of 1984 And Its Effect On Existing Law, Donald C. Langevoort

Vanderbilt Law Review

The legislative history of the Act shows that its principal drafters regarded those who trade on material confidential information as "thieves," deserving substantial penalties. The adoption of the Act is an expression that the existing laws should be used aggressively to curb the misuse of information. Unfortunately, such a result-oriented direction fits uncomfortably within the confining conceptual structure for rule 10b-5 built in recent years by the Supreme Court. Lower courts therefore must flesh out the law of insider trading based on inconsistent mandates, which will make the future path of the law both unpredictable and interesting.

Damages For Insider Trading In The Open Market: A New Limitation On Recovery Under Rule 10b-5, John B. Grenier

Vanderbilt Law Review

The Elkind court's adoption of a "disgorgement measure" of damages for insider trading on undisclosed misrepresented material information in the open market is basically sound. In allowing compensation to the extent practicable, the Second Circuit chose the best solution among the available alternatives. The decision's paramount problems arise in its shifted emphasis to deterrence; the court has neither provided plaintiffs with a sufficient incentive to sue nor created the level of deterrence that some cases might require. Future courts, however, can remedy this situation if they follow Elkind and also award punitive damages in cases in which plaintiffs' losses exceed …

The Role Of Warranties And Product Standards In Solar Energy Development, William H. Lawrence, John H. Minan

Vanderbilt Law Review

This Article examines the use of warranties and product standards in solar marketing as ways to bring about the needed confidence in and acceptance of solar equipment. The first part of the Article analyzes relevant warranty law from the perspectives of solar sellers and buyers. Some government and private groups have argued that warranties can provide the needed impetus for solar development, and there is thus a great tendency today to view warranties as the means to encourage solar usage. The premise advanced in this part of the Article, however, is that warranty law, operating independently, is unlikely to instill …

Book Reviews, Joseph J. Norton, L. Harold Levinson

Vanderbilt Journal of Transnational Law

When considered as an installment in the unfolding of Friedmann's views, based on his earlier writings, the conclusion to the book under review is to be cherished. When considered, on the other hand, solely in context of the contributed chapters of the same volume, the conclusion does not emerge as Friedmann at his most forceful or persuasive. To find the best of Friedmann, we need only sample his prolific contributions to the law reviews, whether on the United States involvement in the Vietnam conflict, the judgment of the International Court in the South West Africa cases, the risks to humanity …