Transnational Law Commons^™

The Timing And Source Of Regulation, Frank Partnoy

Seattle University Law Review

The distinction between specific concrete rules and general abstract principles has engaged legal theorists for decades. This rules–principles distinction has also become increasingly important in corporate and securities law, as well as financial market regulation. This Article adds two important variables to the rules–principles debate: timing and source. Although these two variables are relevant to legal theory generally, the specific goal here is not to address and engage the rules versus principles literature directly. Rather, the goal here is to ask whether the debate about financial market regulation might benefit from a more transparent analysis of temporal and legal source …

Deferred Prosecutions In The Corporate Sector: Lessons From Libor, Justin O'Brien, Olivia Dixon

Seattle University Law Review

Since 2008, the global economic downturn has significantly in-creased operating pressures on major corporations. Additionally, there has been a corresponding increase in corporate tolerance for corruption, which has coincided with a marked preference by regulators in settling, rather than litigating, enforcement actions. This Article argues that the expansion of prosecutorial authority without appropriate accountability restraints is a major tactical and strategic error. It evaluates whether the mechanism can be made subject to effective oversight. It argues that the current frame-work in the United States is highly problematic, leading to settlements that generate newspaper headlines but not necessarily cultural change. It …

Enhancing The Transparency Dialogue In The “Santiago Principles” For Sovereign Wealth Funds, Adam D. Dixon

Seattle University Law Review

The financial crisis ultimately caused Western governments to welcome sovereign wealth fund (SWF) investment as a way to put a floor under collapsing markets and to provide a set of voluntary principles that would underwrite SWFs’ claim to legitimacy in the international community. In the autumn of 2007, then U.S. Treasury Secretary Henry Paulson, in conjunction with the International Monetary Fund, convened the International Working Group of SWFs (IWG) to draft a set of generally accepted principles and practices. These principles are referred to as the “Santiago Principles.” The implicit objective of these twenty-four voluntary principles is to promote greater …

Culture Wars: Rate Manipulation, Institutional Corruption, And The Lost Normative Foundations Of Market Conduct Regulation, Justin O'Brien

Seattle University Law Review

The global investigations into the manipulation of the London Interbank Offered Rate (Libor) have raised significant questions about how conflicts of interest are managed for regulated entities contributing to benchmarks. An alternative framework, which brings the management of the rate process under direct regulatory supervision, is under consideration, coordinated by the International Organization of Securities Commissions taskforce. The articulation of global principles builds on a review commissioned by the British government that suggests rates calculated by submission can be reformed. This paper argues that this approach is predestined to fail, precisely because it ignores the lessons of history. In revisiting …

Australia’S Experience With Foreign Direct Investment By State Controlled Entities: A Move Towards Xenophobia Or Greater Openness?, Greg Golding

Seattle University Law Review

Over the last few years, there has been considerable debate in Australia as to the appropriate regulation of foreign direct investment by entities affiliated with foreign governments. During that time, Australia has been a significant beneficiary of investment by sovereign wealth funds from many foreign jurisdictions, particularly by Chinese state owned enterprises. The Australian government, similar to governments of many developed Western countries, has struggled to properly calibrate its policy settings for regulating this type of investment activity. This Article considers the Australian regulatory regime and assesses Australia’s experience in regulating those investment flows during this period.

State Capital: Global And Australian Perspectives, George Gilligan, Megan Bowman

Seattle University Law Review

The activities of state-related pools of capital need to be understood within the context of an era of globalization, in which economic and political ties between many jurisdictions are deepening, A variety of modes of governance are emerging that have a capacity for impacts of broad international scope. The rising influence of more proactive state-led capitalism is one of the shaping variables in how the global economy has been changing swiftly in recent decades, and the effects of the Global Financial Crisis have arguably accelerated these structural shifts. This Article identifies three discrete phenomena in the state capital arena. First, …

Apologies In The Marketplace, Kish Vinayagamoorthy

Pace Law Review

In order to better appreciate the insufficiency of money in repairing relationships, Part I describes the benefits that an apology brings to the injured party, transgressor, and the broader community in which the parties belong. Part II explains the increasing significance of relationships to certain categories of commercial transactions and provides examples of the types of relational damage that a contractual breach can cause to these commercial relationships. Part III explains how the benefits previously described in Part I are applicable to repairing the types of commercial relational harm described in Part II. Given that relationships matter especially in transnational …

A Framework To Approach Shared-Use Of Mining Related Infrastructure, Perrine Toledano, Sophie Thomashausen, Nicolas Maennling, Alpa Shah

Columbia Center on Sustainable Investment Staff Publications

In April 2013, CCSI was awarded a grant from the Australian Government to develop an economically, legally and operationally rational framework to enable shared use of mining-related infrastructure, including rail, ports, power, water, internet and telecommunications. The framework was obtained by distilling best practice principles from infrastructure developments around the world, guided by expert opinion. It has most recently been refined through in-depth case studies in Liberia, Sierra Leone, and Mozambique, although its principles aim to be of general relevance to all resource rich African countries. The report was finalized in March 2014.

Transnational Business Governance Interactions: Conceptualization And Framework For Analysis, Burkard Eberlein, Kenneth W. Abbott, Julia Black, Errol Meidinger, Stepan Wood

Articles & Book Chapters

This special issue demonstrates the importance of interactions in transnational business governance. The number of schemes applying non-state authority to govern business conduct across borders has vastly expanded in numerous issue areas. As these initiatives proliferate, they increasingly interact with one another and with state-based regimes. The key challenge is to understand the implications of these interactions for regulatory capacity and performance, and ultimately for social and environmental impact. In this introduction, we propose an analytical framework for the study of transnational business governance interactions. The framework disaggregates the regulatory process to identify potential points of interaction, and suggests analytical …

Investment Treaties And Industrial Policy: Select Case Studies On State Liability For Efforts To Encourage, Shape And Regulate Economic Activities In Extractive Industries And Infrastructure, Lise Johnson

Columbia Center on Sustainable Investment Staff Publications

This paper, prepared in connection with a February 2014 conference organized by the UN Economic Commission for Africa, discusses some of the implications that investment treaties have for investments in infrastructure and the extractive industries. It focuses on liability for government conduct (1) in connection with tenders and negotiations; (2) when responding to questions regarding the legality of the investment; (3) in using performance requirements to leverage benefits and capture spillovers from the investment; (4) changing the legal framework governing an investment in response to evolving needs, circumstances, and interests; (5) administering the investment; and (6) requesting, and responding to …

Transfer Pricing: Un Practical Manual – China, Richard Thompson Ainsworth, Andrew Shact

Faculty Scholarship

Any contemporary Chinese transfer pricing assessment needs to consider the United Nation (UN) Practical Manual on Transfer Pricing for Developing Countries released in May 2013. In particular, Chapter 10 discusses Country Practices and presents China’s most up to date transfer pricing policy statement.

China is not an Organization for Economic Cooperation and Development (OECD) member nor has it formally adopted the OECD’s Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations. Chapter 10 makes it very clear that China is charting a different transfer pricing course in at least nine important areas. China believes that: 1. significant comparability adjustments are …

Organizational Fields, Transnational Business Governance Interactions And The Diffusion Of Csr, Melanie Coni-Zimmer

Transnational Business Governance Interactions Working Papers

The paper analyzes the process of global diffusion of Corporate Social Responsibility (CSR) in the oil industry and how interactions between different actors have contributed to this outcome. It starts from the empirical puzzle that CSR has spread globally among transnational corporations since the mid 1990s (diffusion of CSR as a dependent variable). To explain this phenomenon, the paper presents a theoretical argument based on insights from sociological neo-institutionalism. It uses the concept of organizational fields as social spaces where organizations interact with one another. The structuration of an organizational field leads to processes of homogenization among the organizations belonging …

Business And Human Rights: Understanding The Un Guiding Principles From The Perspective Of Transnational Business Governance Interactions, Karin Buhmann

Transnational Business Governance Interactions Working Papers

This article analyses the United Nations (UN) Guidelines on Business and Human Rights adopted in 2011 by the UN Human Rights Council from the perspective of Transnational Business Governance Interactions (TBGI) analytical framework (Eberlein et al. 2014). The article identifies and discusses dimensions of interaction and components of regulatory governance which characterise the Guiding Principles, focusing in particular on the rule formation and implementation. The article notes that the Guiding Principles actively enrolled other actors for the rule-making process ensuring support in a politically and legally volatile field. It identifies mutual 'piggy-backing' by the Guiding Principles and other TBGI Schemes, …

The Rise Of Transnational Private Meta-Regulators, Paul Verbruggen, Tetty Havinga

Transnational Business Governance Interactions Working Papers

In recent years scholars from various disciplines have turned their attention to transnational regimes of regulation that are chiefly developed outside state-driven frameworks. The rise of such "transnational private regulation" has also led to the emergence of private meta-regulation. The term 'meta-regulation' commonly refers to processes through which a regulatory body oversees another and sets standards for its activities or performance of regulation. In the public domain, meta-regulation has been associated with the devolution of regulatory activities by a statutory body to private actors with the view to enhance voluntary rule compliance, awareness of responsibilities among the regulated and reduce …

Autonomous Weapons And Human Responsibilities, Jack M. Beard

Nebraska College of Law: Faculty Publications

Although remote-controlled robots flying over the Middle East and Central Asia now dominate reports on new military technologies, robots that are capable of detecting, identifying, and killing enemies on their own are quietly but steadily movingfrom the theoretical to the practical. The enormous difficulty in assigning responsibilities to humans and states for the actions ofthese machines grows with their increasing autonomy. These developments implicate serious legal, ethical, and societal concerns. This Article focuses on the accountability of states and underlying human responsibilities for autonomous weapons under International Humanitarian Law or the Law of Armed Conflict. After reviewing the evolution of …

Community Of Support: Moving Toward Indirect Regulation Of The Hedge Fund Industry, 3 J. Marshall Global Mkt. L.J. 1 (2014), Randy Haight

John Marshall Global Markets Law Journal

The popularity of hedge funds has exponentially increased over the past decade due to the unparalleled gains that hedge funds present for investors. However, hedge funds remain largely unregulated in comparison to other financial instruments such as traditional stocks and derivatives. The emergence of the hedge fund as a component of the financial industry has brought with it questions pertaining to the optimal method of hedge fund regulation. The foremost concern in regulating hedge funds is to strike a balance between market stability and investor protection. In order to do so, an equilibrium must be found between leaving hedge funds …

Admission Of Guilt: Sinking Teeth Into The Sec’S Sweetheart Deals, 3 J. Marshall Global Mkt. L.J. 27 (2014), Larissa Lee

John Marshall Global Markets Law Journal

Throughout its existence, the U.S. Securities and Exchange Commission (“SEC”) has allowed defendants to settle cases without admitting to the allegations of wrongdoing. This “neither admit nor deny” policy has received heavy criticism by judges, Congress, and the public, especially in the wake of the 2008 financial crisis. On June 18, 2013, SEC Chairman Mary Jo White announced the agency’s intention to require admissions of guilt in certain cases. While Chairman White did not articulate a clear standard of when admissions would be required, she did say that the agency would focus on the egregiousness of the defendant’s conduct and …

Bear Stearns And Lehman Brothers: “Too Big To Fail’S” Impact, 3 J. Marshall Global Mkt. L.J. 49 (2014), Natalie Warrington

John Marshall Global Markets Law Journal

The 2008 financial crisis led to controversial government bailouts of institutions that were deemed “too big to fail” (TBTF). Critics propose that systemic risk and TBTF were the main causes of the financial collapse of Bear Stearns and Lehman Brothers—two of the institutions that were at the center of the bailout controversy. These bailouts have been criticized as creating moral hazard which, for financial institutions, means that decision makers, counterparties, creditors, and shareholders will take fewer precautions and take on more risk since the government will bail them out. However, whether various market participants in fact take fewer precautions and …

Emerging Growth Companies Under The Jobs Act: An Analysis Of The “Ipo On-Ramp”, 3 J. Marshall Global Mkt. L.J. 63 (2014), Kiersten Zaza

John Marshall Global Markets Law Journal

Since 2008, the United States has been faced with a “jobless recovery” which can be attributed in part to a decline in new business creation. To study the link between small companies’ access to markets and creation of jobs, the IPO Task Force was created. The IPO Task Force conducted research and set forth various findings regarding the correlation between emerging growth companies and job creation. The IPO Task Force also attributed a decline in IPO activity to the complex regulatory environment. Accepting these findings, and in response, the JOBS Act passed with surprisingly high bipartisan support. The JOBS Act …

The Right To Be Forgotten: Forced Amnesia In A Technological Age, 31 J. Marshall J. Info. Tech. & Privacy L. 133 (2014), Robert Bolton

UIC John Marshall Journal of Information Technology & Privacy Law

In the modern era, the connection between technology and one’s personal life has increased the number of moments recorded for posterity. While in many circumstances this is an ideal opportunity for fond recollection, it has the downside of displaying for others our less flattering moments. Because the Internet has such a wide scope, once something has entered its domain, it is virtually impossible to permanently remove. With a public increasingly perceiving this winnowing of privacy as a negative tendency, legislators both at home and abroad have made proposals that attempt to place restrictions on what content social media is allowed …

Beyond Privacy Rights: Crossborder Cyber-Espionage And International Law, 31 J. Marshall J. Info. Tech. & Privacy L. 369 (2014), Stefan Kirchner

UIC John Marshall Journal of Information Technology & Privacy Law

No abstract provided.

The Nafta Alternative: Saving Korus Fta Dumping Appeals From The Dumps, Czarina Powell

Canada-United States Law Journal

Antidumping duties are a trade remedy often utilized against producers in the United States' own bilateral trading partners. Because of Chevron deference, foreign companies are at greater risk of being branded "dumpers" simply upon the onset of a petition. On March 15, 2013, the United States celebrated the one-year anniversary of the signing into force of the Korea-US (KORUS) Free Trade Agreement and its promise to eliminate barriers and tariffs.

Where’S The Consultation? The War Powers Resolution And Libya, Eileen Burgin

The University of New Hampshire Law Review

[Excerpt] “President Barack Obama triggered a War Powers Resolution (WPR) controversy with his military response to the anti-government rebellion and civil war in Libya in 2011. Members of Congress seized upon the WPR, questioning whether the Obama administration had complied with the WPR’s requirements when the United States launched the initial Libyan Operation Odyssey Dawn (OOD) and subsequently participated in the North Atlantic Treaty Organization (NATO) Operation Unified Protector (OUP). Many legislators charged that President Obama had violated the WPR. Concerns centered on such issues as presidential reliance on the United Nations (U.N.) Security Council—rather than Congress—for authorization to act, …

Rethinking Resistance: Reflections On The Cultural Lives Of Property, Collective Identity, And Intellectual Property, 47 J. Marshall L. Rev. 1349 (2014), Caroline Joan Picart

UIC Law Review

No abstract provided.

Energy In The Great Lakes Region, Sara L. Seck

Canada-United States Law Journal

This article will reflect upon what it might mean to devise an energy strategy for the Great Lakes region in light of our shared responsibility as stewards of a globally significant fresh water resource at a time of increasing water scarcity associated with climate change. The article argues that we must not let short-term economic fears drive our decision-making or risk adopting policies that will prove detrimental to the long-term futures of our children’s children.

Investment Arbitration Under Nafta Chapter 11: A Threat To Sovereignty Of Member States?, William L. Owen

Canada-United States Law Journal

Critics of NAFTA Chapter 11's investor state dispute settlement mechanism are primarily concerned with its invocation by corporate entities and its potential to effectively overturn or significantly weaken NAFTA states' ability to legislate or regulate in the public interest. This article will address this central concern and demonstrate, by evaluating Chapter 11 arbitration results, that these criticisms have been overstated

Cusli Expert Roundtable Report: Ceta, Tpp, Ttip, And The Canada-U.S. Trade Relationship

Canada-United States Law Journal

An Expert Panel discusses Canada-U.S. trade issues in the context of emerging international trade deals, multilateral trade agreements such as Comprehensive Economic and Trade Agreement (CETA), the Trans-Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (TTIP).

An Evaluation Of The Effects Of The Legalization Of Marijuana In Colorado And Washington From An International Law Perspective, Apama Bushan

Canada-United States Law Journal

The legalization of marijuana in the states of Colorado and Washington has raised issues that the international community has not previously been forced to consider. Through examining relevant state laws, current federal legislation and applicable international agreements, this Note will outline the legal ramifications that the legalization of marijuana in Colorado and Washington could have both nationally and internationally. This Note will further evaluate all reasonable alternatives available to the United States in meeting the requirements mandated of it by the international agreements it is party to.

The Boundary Water Treaty 1909 -- A Peace Treaty?, Gordon Walker Q.C.

Canada-United States Law Journal

A speech that discusses relations between the U.S. and Canada with the Boundary Waters Treaty (BWT) of 1909, peace treaty which resolve the conflict and water rights issues between the U.S. and Canada.

Substituted Compliance And Systemic Risk: How To Make A Global Market In Derivatives Regulation, Sean J. Griffith

Faculty Scholarship

The conventional wisdom is that the global financial crisis of 2007-2008 revealed faults in the ability of international financial regulation to contain the problem of systemic risk. Further conventional wisdom suggests that the failure to regulate comple