When Social Norms and Pressures Are Not Enough: Environmental Performance in the Trucking Industry

Why do some business firms and not others work hard to advance regulatory values such as environmental protection and comply with regulations? Previous research indicates that business firms are influenced in that regard by a number of variables—not merely the perceived likelihood of legal punishment but also the risk of negative reactions by societal actors (which we call “social license pressures”) and the intensity of managers' commitment to norms of law‐abidingness and environmentalism. This article reports on a study of control of diesel emissions in the trucking industry, a highly competitive market with many small firms, mobile pollution sources, expensive “best control technologies,” and weak regulatory demands. In contrast to findings in studies of large firms, we found that social license pressures on small trucking firms are minimal. Trucking companies' environmental performance—good and bad—flows from managers' economic choices, which are influenced by their particular market niche. In such highly competitive, small‐firm market contexts, these findings imply, significant improvement in environmental performance is not likely without strong direct regulatory pressures.     

Tortious acts affecting markets

The present paper examines an injurer causing a temporary blackout to a firm as the primary victim but also affecting customers and competitors of the firm. Reflecting existing legal practice, the paper investigates efficiency properties of the negligence rule granting recovery of private losses but to the primary victim only. The regime is shown to provide efficient incentives for precaution provided that the primary loss exceeds the social loss from accidents. The main contribution of the paper consists of an explicit analysis of markets affected by a temporary blackout of one firm. The analysis reveals that the private loss exceeds the social loss indeed if the market is less than fully competitive. Moreover, the net social loss remains positive, no matter which market structure prevails.     

An experimental model of regulating the sharing economy in China: The case of online car hailing

Online car hailing represents a disruptive innovation model in the sharing economy and requires a new regulatory response. China's attempts to regulate this emerging industry can be considered highly experimental model. To relieve the pressure from offline competitors and to clarify the ambiguous legal status of online car hailing, China currently enforces a strict regulatory scheme through what can be described as a central-local dual system. Questions, however, have arisen regarding the legality, proportionality and effectiveness of this approach. Moreover, the current system's choice for a segmented market strategy heavily impairs the sustainable development of the sharing economy. Therefore, the adoption of Internet-based regulations for online car hailing might create better prospects to establish a fairly competitive market as well as to further boost the ever dynamic Internet sharing economy in China.     

The Econtractor? Defining the Esports Employment Relationship

Esports is now a multibillion‐dollar industry that has quickly become one of the most discussed segments of the entertainment industry. There has been a rush to mention esports alongside other more traditional sports like baseball, basketball, football, and hockey, but the comparison may not be apt. Esports leagues are fundamentally different from traditional sports leagues because the competitive games that make up esports are the intellectual property of the game makers. This unique structure results in individualized relationships between the game makers, esports producers, the teams, and the competitors. This article is among the first to examine the legal status of esports competitors. In doing so, we discuss the employment conditions within esports that make them unique. The industry is poised to face significant labor‐related challenges in the near future, so the article also analyzes the labor issues esports competitors and leagues face, and the importance for stakeholders to pay attention to the legal status and working conditions of the competitors.     

Corporate criminal liability and optimal firm behavior: internal monitoring versus managerial incentives

Legislation addressing corporate criminal liability has been the subject of worldwide debate ever since the financial scandals of the early 2000s. Under current regimes, firms must observe such compliance requirements as internal monitoring mechanisms, the purpose of which is inducing firms to detect the wrongful conduct of their agents. We develop an analytical framework for identifying when, and to what extent, firms may find it beneficial to adopt these regulatory devices. We conclude that more productive firms, those operating in sectors with more market power, and firms whose managers have more opportunities for criminal activity are more likely to prevent wrongful conduct—either through monitoring or the payment of efficiency wages. When the potential returns to illegal activities are high or the firm is large, internal monitoring is probably the optimal strategy of crime prevention; in contrast, smaller firms typically proceed by paying efficiency wages (or ignoring crime). This paper also analyzes the role of the State’s legal capacity as well as the effects of interactions between the structure of reputational losses and the firm’s market power.     

Jurisdictional Conflicts: A New Approach to the Development of the Legal Professions

This paper sketches a new theoretical approach to the study of professions and uses that approach to analyze differences that have emerged between the American and English legal professions since the late nineteenth century. Earlier studies have generally emphasized professional structure and organization while ignoring work and its control. I argue that control of work is central to professional development. Since work is central and since professions compete for it, interprofessional competition is the determining fact in the history of professions. This paper analyzes the work available to the legal profession, the numbers and types of legal personnel available to do that work, and the various competitors contesting it. Studying in detail complaints of unqualified practice in England (1870–1940) and two American states (1910–50), I locate the types of contested work and the competitors involved, using these to explain important aspects of the two legal prof essions today. Throughout, a variety of theoretical concepts are developed and applied to the particular case. One striking discovery is the contrast in competitors; American lawyers & rsquo;chief competitors were corporations, while British lawyers'chief competitor was the state. I close by evaluating the strengths and weaknesses of the particular methodology here used—the study of conflicts—and suggest alternative methods using the same theoretical framework.     

FDI spillovers on firm survival in Italy: absorptive capacity matters!

The aim of this paper is to explore the effects of spillovers driven by competition and forward and backward linkages between foreign firms and Italian firms. We adopt the firm dynamics framework, which allows us to test the impact of foreign firms’ activity on the probability that local firms will exit. The empirical analysis relies on continuous survival models (Cox proportional hazard models) and uses a representative firm level database from the period of 2002–2010 with data concerning more than 4,000 Italian manufacturing firms. Our estimates regarding the whole sample show that horizontal and vertical linkages have no impact on firm survival. To further test this finding, we perform a more disaggregated analysis that allows for heterogeneity across firms and sectors. We obtain evidence that the effects of FDI spillovers on firm survival follow specific patterns at both the intra- and inter-industry levels based on differences in productivity between Italian firms and foreign firms and on the technological intensity of the industry. Foreign firms’ activity reduces the exit probability of competitors and of downstream local customers (through forward linkages) with low productivity gap but has no impact on high productivity gap firms. Firms in high technology intensive sectors do not benefit from horizontal FDI while in low and medium technology sectors they do. Differences in absorptive capacity may explain these results. However, we also find that vertical linkages with foreign firms in the upstream supplying industries spur firm duration in medium and high tech sectors.     

Online penny auctions and the protection of the consumer under EU law

This paper examines online penny auctions, which currently attract consumer traffic but pose consumer risks also. It discusses pressing questions such as whether they are scams, entertainment shopping or gambling. It shows that though they cannot readily be considered as scams, they are suspiciously risky for consumers. Moreover, contrary to what penny auctioneers suggest, they do not allow for consumer shopping. They also share several characteristics with gambling and therefore, the possibility of legally classifying them as such is worth exploring. If they are not gambling, consumer protection legislation is fully applicable to them and can satisfactorily protect penny consumers. If penny auctions are legally classified as gambling however, protection will greatly be enhanced; they will (additionally) be subjected to strict and detailed gambling laws at least in the UK, where a mature gambling regulatory regime exists. Certain disadvantages of labeling penny auctions as gambling can relatively easily be remedied through suitably adjusting gambling laws. The paper concludes by suggesting possible approaches of legal regulation of this new online phenomenon.     

Regulatory justice: A re-examination of the influence of class position on the punishment of white-collar crime

The issue of class bias in response to white-collar crime offenders remains unresolved because of data limitations, research design problems, and debates over the conceptualization of core factors. One problem is that previous research failed to consider the full range of legal actions that can be taken against a violator of regulatory law; it typically focuses only on criminal sanctioning when addressing the issue of bias. Recent data on formal actions taken against federal securities offenders were used to reconsider the issue of bias. This analysis, however, examined the entire range of legal actions taken against offenders—civil, administrative, and criminal. I used a logistic regression analysis to determine the sampled offenders' likelihood of receiving a punitive sanction. Both principals and “contrepreneurs” were significantly less likely to receive a punitive response than managers and other legitimate actors in the workplace. Securities professionals (other than principals) were particularly vulnerable to punitive sanctions if they were affiliated with larger firms in the industry, as opposed to smaller firms. These findings suggest that the relationship between class and the punishment of white-collar offending is more complex than suggested previously.     

‘Shut up and bill’: workplace bullying challenges for the legal profession

Competition, work intensification and requirements for efficiency are some of the hallmarks of the modern work environment. Pressures in such settings can result in stress caused by long work hours, a lack of work–life balance and interpersonal conflict. The legal profession is prone to negative impacts due to its highly competitive environment. This, coupled with established hierarchical structures, significant power imbalances and pressure to measure work input rather than output (billable hours), can create ‘toxic’ settings. This paper reports the findings of a study of dignity and respect in the legal profession. Results indicate that many of the issues arise due to negative workplace cultures brought about and perpetuated by work practices and the leadership of the firm. Often the prevailing culture of intense competition, and a win-at-all-costs mentality, has negative repercussions for the security and standing of individuals. Those with position and power use work practices such as billable hours to push others to perform at extraordinary levels, in turn adversely affecting their well-being, quality of work life and tenure in the organisation or profession. The way forward would require a multi-pronged approach and cooperation and collaboration by the relevant stakeholders: regulators, professional associations, institutions and individuals.     

Regulatory Pragmatism,Legal Knowledge and Compliance with Law in Areas of State Weakness

The literature suggests that compliance with law is unlikely in areas of state weakness absent additional state capacity. Utilizing three novel data sets collected in adjacent districts in India and Nepal, this article demonstrates that weak states can significantly increase compliance by fostering accurate legal knowledge—something the literature often assumes is widespread. This assumption is problematic because principal–agent problems prevent many weak states from behaving consistently; target populations often lack education and competent legal advice and struggle to learn about the law via observation. States that employ regulatory pragmatism, however, may overcome this challenge; they do so by designing implementation strategies for on‐the‐ground realities. I investigate two such efforts—delegated enforcement and information dissemination through local leaders. The data indicate that strategies consistent with regulatory pragmatism, in contrast to those that are legally doctrinaire or deterrence based significantly increase legal knowledge and compliance, even where the state is locally weak.     

信用评级机构的法律定位及其国际监管改革研究

信用评级机构是金融市场日益专业化过程中不可或缺的一员,通过其专业化的评价体系,对解决投资者和证券发行人之间的信息不对称问题发挥了很大的作用。但是,随着评级机构日益深入地参与到金融证券化的过程中,不可避免的利益冲突使其中立性、客观性等在一定程度上有所缺失。次贷危机发生后,对信用评级机构加强监管的呼声日益高涨,各国金融监管机构开始对信用评级机构进行全面的严格的监管,但是,由于评级业本身的自然垄断属性以及评级业务的专业性,使其定位上存在模糊之处。在分析信用评级机构存在的缺陷基础之上,对其法律定位进行探讨,并预测国际监管改革与合作的发展趋势是十分必要的。     

Principle of Proportionality as Principle of Economic Efficiency

The principle of proportionality is at the cornerstone of EU law, and precisely of the case‐law of the European Court of Justice (ECJ). In the law and economics literature, the general principles of law are commonly opposed to legal rules in terms of efficiency. On the one hand, the legal formalistic approach consists of apprehending the law as principled, whereby principles of law do not and should not encompass an efficiency rationale and should be self‐sufficient. On the other hand, the legal nihilism denying the existence or relevance of the general principles of law favours legal rules that are said to incorporate an efficiency rationale. I intend to analyse the efficiency rationale of probably the most important general principles of EU law—the proportionality principle. In this paper, I shall assert that not only does the EU proportionality principle encapsulate an efficiency rationale, but most importantly, it has been interpreted by the ECJ as such—hence, I propose the representation of the principle of proportionality as a principle of economic efficiency. After having introduced the principle of proportionality (1), I shall decipher the proportionality principle both from a law and economics perspective, and from a comparative perspective (2). Then, I shall delve into the jurisprudence of the ECJ so that the judicial reasoning of the Court as this reasoning proves the relevance of the proposed representation (3). Finally, I conclude in light of the findings of this paper (4).     

State GHG Regulation in a Trump Era: Energy Efficiency as BACT

With the Obama USEPA's Clean Power Plan unlikely to come to fruition under the incoming Trump administration, this article examines another avenue that states (or USEPA) may use to regulate GHG emissions from major stationary sources: by more aggressively pursuing energy efficiency as “best available control technology” under the Prevention of Significant Deterioration program of the Clean Air Act. This article argues that such regulation may validly include efficiency measures both “at-the-source” and—more ambitiously—“beyond the fence line.”     

UNBUNDLING LEGAL SERVICES IN MEDIATION

The adversarial model for resolving family disputes is seriously flawed. The judicial system is inefficient and uneconomical. The vast majority of litigants cannot afford to have their cases handled by a lawyer, and, as a result, they end up representing themselves. However, divorcing spouses want and need legal services. They should not be forced to choose between full services and no services. As mediation moves toward acceptance as the preferred method for resolving family disputes, attorneys have an opportunity to offer a menu of legal services from which clients may order a la carte. This is the essence of unbundling. This article explores how unbundling enables mediation clients to obtain the legal services they request at an affordable cost and relieves consulting attorneys who perform discrete tasks of responsibility for the outcome of the case.     

Corrupt intermediaries in international business transactions: between make, buy and reform

Attempts to deter corruption have little recognized the operation of intermediaries. This study takes a New Institutional Economic-perspective, supported by a variety of case studies, to identify firms’ choices of when to engage corrupt intermediaries (buy) and how to approach reform. It argues that firms should be held unbendingly liable for the operation of their intermediaries. Reform may also focus on certifying “good” intermediaries and holding the certifier liable for the performance of its agents. Prohibiting intermediaries is not advisable, as intermediation can be either arranged in-house (make) or mixed with legal services. Registration and auditing of intermediaries provides a more promising avenue for reform. Legislators should balance the additional regulatory burden by granting a wage premium to registered intermediaries and denying legal recourse to unregistered competitors.     

Entrepreneurial Regulatory Legal Strategy: The Case of Cannabis

This article develops the concepts of regulatory legal strategy, a resource-based view of government agencies, and regulatory entrepreneurship. These ideas are explored through a case study of the limited (if any) access that legal cannabis-related businesses have to the banking system due to the clash between federal law and laws in those states that have legalized some uses of cannabis. This article argues that regulators’ entrepreneurial regulatory legal strategies can have a material impact on regulated entities and give them a competitive advantage. To demonstrate, this article claims that regulators’ adoption of permissive regulatory legal strategies has facilitated access of some cannabis-related businesses to the banking system. Conversely, if regulators adopted obstructive regulatory strategies, this would act as a constraint on such access in the future, even if Congress resolves the federalism issue largely responsible for the current limitations these businesses face.     

Transnational constitutionalism – conflicts-law constitutionalism – economic constitutionalism: the exemplary case of the European Union

Transnational constitutionalism is both a sociological given and a legal challenge. We observe the emergence of ever more legally framed transnational arrangements with ever more power and impact. Do such arrangements deserve to be called legitimate rule in Habermasian terms? Is it at all conceivable that the proprium of law can be defended against the rise of its informal competitors? This article opts for a third way that listens to neither the siren songs on law beyond the state nor to the defences of nation-state constitutionalism as the monopolist of legitimate rule. The proposed alternative suggests that transnational legal ordering of the European Union should build on its reconceptualization as a ‘three-dimensional conflicts law’ with a democracy-enhancing potential. This reconceptualization operationalizes the ‘united in diversity’ motto of the Draft Constitutional Treaty of 2004, preserves the essential accomplishments of Europe's constitutional democracies, provides for co-operative problem solving of transnational regulatory tasks, and retains supervisory powers over national and transnational arrangements of private governance.     

Social justice jurisprudence of clinical education programme: A paradigm shift from legal education to justice education

The legal profession has remained relevant in bringing about positive transformation in society — with leaders, policymakers, and change makers around the world mostly possessing a background in the law. That said, the trust, and positive image, enjoyed by legal professionals continues on a declining path. Considered more glamorous, the legal profession has gone astray from the path of social justice. In this article, I argue that the negative perception of legal professionals is, in large part, because of the way legal professionals are taught and trained in law schools. I argue that legal teaching pedagogy in South Asia, and generally in developing countries, is a product of colonial structure. Even after the so-called decolonisation movement, law schools and universities, for example in South Asia, institutionalised a legal pedagogy unsuited to the epistemic actualities of their societies. A law student in South Asia was and continues to be taught the Western conception of what the law is and its relationship to justice. In a legal culture carrying the transplanted laws of the colonisers, the students of developing countries are meticulously trained in the technical skills of reasoning and interpretation by applying Eurocentric guidelines of positivist construction. In light of this, I propose a shift in legal education: to transform the existing legal education and pedagogy into ‘justice education’. I focus on the ancient principles — located in the Eastern legal philosophy — of empirical reasoning and the importance of the human nature of sociability in arriving at social justice. To combat the tendency of insulating law students from societal problems, I propose a social justice-driven legal pedagogy. I have also reflected on some practices that ‘are’ and highlighted other practices that ‘ought to be’. My thesis connotes that the legal profession has an innate role in building the capability of individuals who are deprived and excluded. In line with it, I present examples of scalable clinical legal education being practised specially by the Kathmandu School of Law that can create multidimensional legal professionalism.