The Bonding Effects of Directors' Statutory Wage Liability: An Interactive Corporate Governance Explanation

Canadian corporate directors are personally liable to the corporation's employees for unpaid wages. The dominant rationale is the protection of vulnerable employees. A proposal under consideration to exonerate directors from this liability responds to claims that directors of financially troubled corporations resign prematurely, lessening the realized value potential of the firm. Scholars have also argued that a "liability chill" causes directors to make inefficient, risk‐averse investment decisions while the corporation is solvent. Paradoxically, exoneration may actually decrease the value of the firm because directors' liability for employees' wages increases efficiency in corporate governance by reducing agency costs. It serves as a bond by directors to corporate stakeholders that they will diligently restrain harmful managerial behavior.     

Race relations in police operations: A legal and ethical perspective for officers

This presentation looks beyond the contemporary controversy over the use of race in drug courier profiling and examines the broad spectrum of rare relations affecting police operations. Racial controversy is not new to law enforcement, nor is it a recent phenomenon in American society. American police do not get enough credit for the enormous amount of positive daily interaction within minority communities. Police are pervasively present within minority communities around the clock successfully solving disputes, responding to calls for service, and addressing community concerns. It is against this backdrop that many in law enforcement are becoming increasingly frustrated by the perception, if not the reality of deteriorating race relations between police and minorities. One thing is certain: police cannot withdraw from racial conflict. Police will continue to operate within minority communities, regardless of the racial composition of either the community or the law enforcement agency. Therefore, officer and supervisory training should not only focus on how to avoid racial conflict, but also on how to ethically and legally perform in an environment where treatment of minorities is critically examined.     

Using laboratory experiments for policymaking: An example from the Georgia irrigation reduction auction

In recent years, interest has been growing in policy applications of different auction systems. This paper reports a series of experiments that were used to design and implement an auction in a unique policymaking environment. In April 2000, the Georgia legislature passed a law that mandated that the state hold an auction in drought years to pay some farmers to suspend irrigation. This paper reports the results of laboratory experiments state policymakers used to determine the auction institution that would be used to fulfill the requirements of this new law. Experimental results are compared with farmers' bidding behavior in the state‐run irrigation auction used to reduce water usage in Georgia. © 2004 by the Association for Public Policy Analysis and Management.     

Digital technology: its impact on copyright law and practice in North America

Legal context. The effect of rapid technological change on copyrightlaw in Canada and the United States, and in particular on thebalance between creators' rights and users' rights. Key points. Copyright law involves a balance between the rightsof both creators and users. When initially faced with fast-evolvingdigital technology, the courts struggled with the balancingact and tipped it in favour of users' rights. The Supreme Courtof Canada elevated various exceptions to infringement to userrights, and cautioned against a low standard of originalitywhich would favour creators' rights. The US Court of Appealsremarked that introduction of new technology is disruptive tocopyright owners whose works are sold through traditional mechanisms;and others suggested that a bias in favour of owners rightsmay have well impeded the development of digital culture. Despitethe initial struggles, legislative changes, market forces andrecent deference by the courts to the balancing of various interests,have slowly restored the copyright balance, even when facedwith rapid technological change. Practical significance. Copyright litigants must give carefulconsideration to the balance between creators' and users' rights,and be prepared to justify traditional copyright protectionin fields of new technology.