Institutional competition of optional codes in European contract law

The Common European Sales Law (CESL) is the European Commission’s most recent policy initiative for European contract law. It aims to address the problem that differences between the national contract laws of the Member States may constitute an obstacle for the European Internal Market. This paper develops a model of the institutional competition in European contract law and uses it to addresses the question as to whether an optional European contract code and the CESL are economically desirable for European contract law. To do so I examine the transaction costs involved in the process of choosing an applicable law that European businesses face when they conduct cross-border transactions in the European Internal Market. I then describe how these transaction costs shape the competitive environment, i.e. what I refer to as the “European market for contract laws” in which the contracting parties choose a law to govern their cross-border contracts. Having identified this environment and the competitive forces operating within it, I propose a model, the “Cycle of European Contract Law”. I use this model to analyze the competitive processes that take place in the European market for contract laws. Based on my results I make recommendations for the optimal implementation of an optional European contract code and the CESL in European contract law.     

Application of private international law conventions in hong kong of china

The conflict of laws of Hong Kong has predominately preserved traditional common law rules of pre-England conflict of laws. It is considered as the legal basis of the harmonization of law conflicts between different legal units, which mainly include three parts: jurisdiction, choice of law, judicial assistance in civil and commercial matters. As far as the legal source of the conflict of laws of Hong Kong is concerned, convention is an important part of international law sources. Currently, there are ten special conventions related to private international law, one of which is the New York Convention on the Recognition and Enforcement of Arbitral Awards, and the other nine are the conventions consulted by the Hague Conference on Private International Law (“HCCH”), including the Statute of the Hague Conference. Also, there exist non-special conventions relating to private international law, which play an important role in Hong Kong. These conventions have brought tremendous benefits to Hong Kong. More attention needs to be paid to the conventions of private international law to assist Hong Kong in cooperation with other more jurisdictions.     

European criminal law and European identity

This contribution aims to explain how European Criminal Law can be understood as constitutive of European identity. Instead of starting from European identity as a given, it provides a philosophical analysis of the construction of self-identity in relation to criminal law and legal tradition. The argument will be that the self-identity of those that share jurisdiction depends on and nourishes the legal tradition they adhere to and develop, while criminal jurisdiction is of crucial importance in this process of mutual constitution. This analysis will be complemented with a discussion of the integration of the first and the third pillar as aimed for by the Constitutional Treaty (TE), which would bring criminal law under majority rule and European democratic control. Attention will be paid to two ground breaking judgements of the European Court of Justice (ECJ) that seem to boil down to the fact that the Court actually manages to achieve some of the objectives of the CT even if this is not in force. This gives rise to a discussion of how the CT (and related judgements of the ECJ) may transform European criminal law in the Union to EU criminal law of the Union, thus producing an identity of the Union next to the identities prevalent in the Union. The contribution concludes with some normative questions about the kind of European identity we should aim to establish, given the fact that such identity will arise with further integration of criminal law into the first pillar.

Robots,standards and the law: Rivalries between private standards and public policymaking for robot governance

This article explains the complex intertwinement between public and private regulators in the case of robot technology. Public policymaking ensures broad multi-stakeholder protected scope, but its abstractness often fails in intelligibility and applicability. Private standards, on the contrary, are more concrete and applicable, but most of the times they are voluntary and reflect industry interests. The ‘better regulation’ approach of the EU may increase the use of evidence to inform policy and lawmaking, and the involvement of different stakeholders. Current hard-lawmaking instruments do not appear to take advantage of the knowledge produced by standard-based regulations, virtually wasting their potential benefits. This fact affects the legal certainty with regards to a fast-paced changing environment like robotics. In this paper, we investigate the challenges of overlapping public/private regulatory initiatives that govern robot technologies in general, and in the concrete of healthcare robot technologies. We wonder until what extent robotics should be governed only by standards. We also reflect on how public policymaking could increase their technical understanding of robot technology to devise an applicable and comprehensive framework for this technology. In this respect, we propose different ways to integrate the technical know-how into policymaking (e.g., collecting the data/knowledge generated from the impact assessments in shared data repositories, and using it for evidence-based policies) and to strengthen the legitimacy of standards.     

Criminal DNA databases: the European situation

In the last 5 years, a number of European countries have successfully introduced national databases holding the DNA profiles from suspected and convicted criminal offenders as well as from biological stain materials from unsolved crime cases. At present, DNA databases are fully or partially in operation in the UK, The Netherlands, Austria, Germany, Finland, Norway, Denmark, Switzerland and Sweden. Furthermore, in the other European countries, specific legislation will be enacted soon, or the introduction of such databases is being discussed to initiate a legislative process. Numerous differences exist regarding the criteria for a criminal offender to be included in the database, the storage periods and the possibility to remove database records, the possibility to keep reference samples from the offenders as long as their respective records are being held, and the role of judges in the process of entering a database record or to perform a database search. Nevertheless, harmonization has been achieved regarding the DNA information stored in national databases, and a European standard set of genetic systems has been recommended which is included either in part or completely in the DNA profiles of offenders and crime stains for all European databases. This facilitates the exchange of information from database records to allow the investigation of crime cases across national borders.     

On the optimal complexity of law and legal rules harmonization

This paper analyses the determination of the complexity of legal rules in a context of harmonization between different countries. We first assume that there are no harmonization gains. We show that if the optimal complexity levels of legal rules are equal across countries, their common level will stick when legal rules are harmonized. When these levels are different, one nation-state may lose to the determination of a uniform level of complexity. However, when there are harmonization gains we show that if these harmonization gains are large enough, complex legal rules are optimal. Moreover, we show that each nation-state could gain from the determination of a uniform level of complexity, even if this level is not its preferred one.

The legal landscape for advanced therapies: material and institutional implementation of European Union rules in France and the United Kingdom

In 2007, the European Union adopted a lex specialis, Regulation (EC) No. 1394/2007 on advanced therapy medicinal products (ATMPs), a new legal category of medical product in regenerative medicine. The regulation applies to ATMPs prepared industrially or manufactured by a method involving an industrial process. It also provides a hospital exemption, which means that medicinal products not regulated by EU law do not benefit from a harmonized regime across the European Union but have to respect national laws. This article describes the recent EU laws, and contrasts two national regimes, asking how France and the United Kingdom regulate ATMPs which do and do not fall under the scope of Regulation (EC) No. 1394/2007. What are the different legal categories and their enforceable regimes, and how does the evolution of these highly complex regimes interact with the material world of regenerative medicine and the regulatory bodies and socioeconomic actors participating in it?     

Autonomy and private ordering in contract law

This essay reviews Michael J. Trebilcock's book,The Limits of Freedom of Contract (Cambridge, MA: Harvard University Press, 1993), examining crucial and controversial social issues within the rigorous framework of the law and economics of contract. The idea that private markets are the primary institutions for the allocation of limited resources is central to any private ordering model of contract law. Yet such a premise leaves a number of fundamental questions unanswered. Trebilcock is critical of the insufficiency and ambiguity of current contract theory in addressing fundamental legal issues relating to the limits of freedom of contract. Pushing the frontiers of current legal theory, Trebilcock revisits the slippery notion of freedom of contract and tests the actual reach of economic analysis in providing a coherent answer to compelling social questions. The author pursues his ambitious task by examining the conclusions reached by competing paradigms of analysis. In spite of his declared trust in the economic approach to law, Trebilcock pays close attention to alternative analytical traditions, comparing the conclusions of various intellectual perspectives with those suggested by an economic framework of private ordering. The book objectively examines strengths and weaknesses of competing views, affording the reader a balanced position from which to conclude for herself, by illustrating the practical implications of the various approaches. In a number of instances, Trebilcock shows how different theoretical premises may indeed be conducive to similar institutional outcomes.Associate Professor of Law, George Mason University. The support of the Sarah Scaife Foundation and of the John M. Olin Foundation is gratefully acknowledged, as are the helpful comments of Jonathan C. Harris and Charles K. Rowley. Extensive remarks received from Michael J. Trebilcock prior to publication allowed me to remedy earlier omissions.     

Europe's 'Democratic Deficit': The Question of Standards

Arguments about Europe's democratic deficit are really arguments about the nature and ultimate goals of the integration process. Those who assume that economic integration must lead to political integration tend to apply to European institutions standards of legitimacy derived from the theory and practice of parliamentary democracies. We argue that such standards are largely irrelevant at present. As long as the majority of voters and their elected representatives oppose the idea of a European federation, while supporting far-reaching economic integration, we cannot expect parliamentary democracy to flourish in the Union. Economic integration without political integration is possible only if politics and economics are kept as separate as possible. The depoliticisation of European policy-making is the price we pay in order to preserve national sovereignty largely intact. These being the preferences of the voters, we conclude that Europe's 'democratic deficit' is democratically justified.
The expression 'democratic deficit,' however, is also used to refer to the legitimacy problems of non-majoritarian institutions, and this second meaning is much more relevant to a system of limited competences such as the EC. Now the key issues for democratic theory are about the tasks which may be legitimately delegated to institutions insulated from the political process, and how to design such institutions so as to make independence and accountability complementary and mutually supporting, rather than antithetical. If one accepts the 'regulatory model' of the EC, then, as long as the tasks delegated to the European level are precisely and narrowly defined, non-majoritarian standards of legitimacy should be sufficient to justify the delegation of the necessary powers.     

欧洲法院的司法独立性对欧洲一体化进程的贡献

半个世纪以来,欧洲一体化进程的实践证明,经济一体化、政治一体化的实现都离不开统一的欧洲法律体系的建设。欧洲法院司法实践证明,在欧洲一体化进程中,欧洲法院司法独立的作用功不可没。文章从分析欧洲法院的特点入手阐述其司法独立性及其在欧洲一体化进程中的作用。     

Private roles in food safety provision: the law and economics of private food safety

Private food safety standards play a crucial role in ensuring the safety of the foods we consume. A voluntary instrument, private standards are so widespread to have become de facto mandatory for suppliers who wish to access the most profitable markets. Developed by retailers and business coalitions and enforced through third-party certification, private food safety standards constitute one of the principal food safety governance instruments of agribusiness value chains. Albeit private and voluntary, such standards have profound public implications because they contribute to food safety and protect consumers’ health. This article uses law and economics theory to identify their strengths and vulnerabilities and understand the relationship between public and private regulation. Specifically, it examines whether private standards can fulfill the public interest objective of protecting consumers’ health and whether they compete with or rather complement public regulation. The article argues that private standards have emerged in response to food scares to coordinate complex food value chains and have become ever more relevant in the context of intense market globalization, an area in which public regulation often failed. Among the advantages of private standards, are their flexibility and ability to rapidly respond to new risks. Through their focus on management-based regulation and strong market incentives for producers, private standards promote compliance better than traditional inspection methods. Private standards also present several gray areas including increased risk of capture due to their limited transparency and gaps in enforcement by third-party certifiers. The article suggests areas that deserve additional scrutiny, especially the opacity of standards vis-à-vis consumers and the public sector and the quality and reliability of third party certification.     

Lawyers’ economics versus economic analysis of law: a critique of professor Posner’s “economic” approach to law by reference to a case concerning damages for loss of earning capacity

We provide a comparative overview of the process of implementation, harmonization and stabilization of public oversight systems for statutory auditors across the European Union (EU) after Directive 2006/43/EC. We build on institutional change theory to identify potential determinants as to why some countries still lag in this harmonization process. Oversight systems are a key institutional factor to guarantee the quality of financial information, essential to maintain investors’ confidence and deep and stable capital markets. Thus, the harmonization of these systems has long been an objective of the EU. Our analyses serve to identify, analyse and compare how EU countries have incorporated European-wide requirements into their national legal systems. Particularly, we study: (1) basic characteristics of the system and bodies for public oversight, (2) organizational structure, (3) financing (4) transparency, (5) supervisory, and (6) disciplinary mechanisms. We show that significant diversity still exists across systems and that both the incentives for institutional change and the distance between pre-existing systems and the Directive are important explanatory factors of the achieved level of harmonization.     

Harmonization of private law on a global level

The Vienna Sales Convention (1980) follows in large measure the American Uniform Commercial Code: Article 2 on Sales. Is this to imply that the Contracting States to the Vienna Sales Convention really prefer American sales law? This paper answers this question in the negative, and argues instead that the United States’ economic leverage with other countries is the key factor influencing developments pertaining to private law on a global level.We explain why it may be useful to harmonize rules of private law on a global level and which rules should be chosen for a uniform law. We show that the choice between two legal arrangements may lead to a coordination problem. Next we argue that the coordination problem is solved in favor of the jurisdiction whose economy is less dependent upon the economies of other jurisdictions than the other way around. We use our model to discuss the harmonization of sales law on a global level in the twentieth century.     

法律趋同视角下的欧盟统一公司立法研究

欧盟统一公司立法创设了超国家层面的商事主体——欧洲公司和欧洲私人公司;资本制度更自由,公司治理更灵活,促进了各成员国公司法制度的趋同。统一公司立法也受制于各国的法律传统、利益集团和路径依赖等因素。欧盟成员国包括了大陆法系和英美法系国家,其公司立法的成果与争议,反映了两大法系公司法制度融合与竞争的发展趋势,值得在我国《公司法》修改完善中加以借鉴。     

Harmonizing the international regulation of embryonic stem cell research: possibilities, promises and potential pitfalls

Despite near unanimous global opposition to human reproductive cloning, the United Nations has been unable to reach a consensus as to how cloning practices should be regulated at the international level. As a result, the U.N. objective of establishing binding international regulations governing cloning and stem cell research has yet to be achieved. Given the lack of consensus that exists within the global community on this topic, it seems that any attempt to harmonize the international regulation of cloning and stem cell science will face important obstacles. This paper seeks to illuminate the particular challenges to harmonizing international laws and policies related to stem cell research and human cloning, and to investigate potential methods for overcoming these challenges. By drawing on two other areas in which regulatory harmonization has been attempted, namely: environmental and human safety aspects of international trade, and pharmaceutical research and development, we study approaches to global regulatory harmonization. We conclude that while the challenges to harmonization are diverse and important, so too are the benefits of establishing uniformity in approaches to stem cell research worldwide. This paper proposes a model for harmonizing the regulation of stem cell research that focuses on broader norms and principles rather than specific rules. It further recommends that such harmonization should occur through a process initiated and developed by an independent international agency marked by diversity, both in terms of the cultural identities and perspectives represented, and the interdisciplinary expertise of its members.     

Joint Dynamics of Legal and Economic Integration in the European Union

We evaluate the causal linkages between the economic and legal integration process that has characterised the formation of the European Union. Specifically, using the frequency of national references for preliminary rulings sent to the European Court of Justice as a measure of legal integration we investigate its joint dynamics with the expansion of intra-EU trade over the 1960–1998 time period. Our objective is to formally test whether any such linkages exist and the direction within which they have operated.     

Sequencing of remedies in sales law

This paper analyzes the effects of different sequences of remedies on the incentives of sellers to invest in product quality and on the probability of contract termination. For most European jurisdictions, Directive 1999/44/EC on the sale of consumer goods and its subsequent implementation into national law resulted in a substantial change in the remedies available to the consumer if a product proves deficient. Despite the purpose of the directive to harmonize national legislation, sales laws still differ significantly among member states. The analysis uses a stylized model to compare the pertinent features of two prototypical legal regimes that can be found after the directive’s implementation. The pivotal difference between the respective regimes lies in the sequence of remedies. We show that it is possible that investment incentives and the probability that contractual relationships initiated will be completed may be larger under either legal regime. Despite the general case’s ambiguity, we establish that the cancelation probability is typically lower if sales law limits buyers initial choice of remedies to subsequent performance. Our analysis indicates that the EC’s harmonization target has been missed. With regard to social optimality, we detail under which conditions it is desirable to provide an institutional framework that allows total seller investment to be split between an initial and an incremental input.     

The Constitution of a European Democracy and the Role of the Nation State

Starting from the presupposition that European democracy is necessary to the survival and development of the European Union, the author deals with the process which may entail a European constitution, and discusses the elements of the present legal structure of the EU which are conducive to a European Democracy. In particular, the author focuses on the incomplete, polycentric, and dynamic character of a possible EC/EU constitution, and on the duality of its legitimating principle. This claim is that these characteristics necessitate some institutional modifications of democratic principles if compared with national democracy, and that Euro-democracy is possible if we do not simply apply the standards of democracy valid for Member States, but succeed in developing criteria which are adequate to the institutional qualities of the EC/EU. Finally, the author maintains the legal character of the regulatory power of the Community, and invokes the mutual legal bonds linking the Member States and their peoples as the source of the Community.     

全球化与国际法律意识

法律全球化是近年来法律领域内的一种明显的客观发展趋势 ,它表现为在经济全球化基础上 ,各国各地区的法律在内在精神、原则、主要标准及主要程序上相互接近、协调、吸收甚至部分同一或统一的现象。这种趋向并不必然地与我国的国家利益相冲突。我们要在主观上适应这种现实 ,从积极的方面思考问题。