The Cayman Islands and the John Grisham Effect: Yes, Everything Changed

Introduction

            In May 2009 American President Barack Obama spoke of how an address in the Cayman Islands housed 12,000 companies. Alluding to the possibility of illegal activity, he noted that this location was either the biggest building in the world or “the largest tax scam in the world.” This image of Offshore Financial Centers (OFCs) as havens for wrongdoing is generally held throughout the world.   Recent data indicates that the Cayman Islands holds over 670 billion American Dollars in banking assets from international investors.

            Because of such statistics, these small islands are considered a global villain, a haven for illegal capital. According to the OECD Harmful Tax Competition: An Emerging Global Issue (1998 Tax Report) jurisdictions that (a) imposes no or only nominal taxes, (b) lacks policy of effective exchange information, (c) lacks transparency and (d) has no requirement of “substantial activity” is Read the rest

Provena Covenant Medical Center v. Department of Revenue: The Decision That May End Charitable Exemptions for Nonprofit Hospitals

  I.  Introduction  

The recent decision by the Illinois Supreme Court regarding tax exemption for hospitals is troubling for the already volatile and uncertain future of many hospitals that are facing increasing difficulties in the current economic market.  The Illinois Supreme Court held that Provena Medical Center in Urbana does not provide enough charity care to qualify for the tax exemption provided for hospitals that care for uninsured and poor patients without generating a profit or collecting fees.[1]  The decision has generated significant criticism for relying on old precedent, failing to take into account current economic conditions, and for failing to provide clear guidelines for nonprofit hospitals that want to qualify for tax exemption in Illinois.[2]  The implications of this decision while not precisely known can have wide ranging consequences for hospital financing and access to healthcare for low income and uninsured Read the rest

The Failure of the Green Movement

One of the primary problems with land conservation and use aside from the issue of sustainability, is that we as humans have established a culture that is prone to abusing the land we live on. We have tried to heal the environment using the new “Green” movement which is designed to have individuals change their behaviors and then as a result, the collective actions of our society will be environmentally beneficial.[1] However, this method has not produced the effects it was designed for.[2] Individual actions have not changed much and neither has public perception to the problem at hand.[3] This is reflected in the way our economy functions, the way we consume goods and dispose of them, and the expectations placed upon us by the government that we have elected.[4]

In fact in the course of property law, one of the most important aspects is that of exclusion in that Read the rest

Happiness and its Effect on Economic Development and Business Profitability

Introduction

“Policy decisions at the organizational, corporate, and governmental levels should be more heavily influenced by issues related to well-being––people’s evaluations and feelings about their lives.”[1]  This recent trend in economic development literature, that policy decisions at the government and corporate level should be influenced not by profit maximization but their effect on people’s subjective well-being, is gaining acceptance in the real world.  Empirical research and analysis shows that policy aimed at improving workplace happiness not only has an impact on employees subjective feelings of well-being, but also improves worker productivity and by extension corporate profitability.    

How Do Happiness Studies Work? 

Because “happiness” is not a quantifiable variable, there are numerous ways in which researchers control for the subjective aspect of one’s reported happiness.  A typical happiness survey consists of simply asking respondents, “all things considered, how happy are you with your life?”. [2]  To control for the fact Read the rest

American Needle, Inc. v. National Football League: Will the NFL’s Challenge Intercept a Hockey Fan’s Enjoyment of the NHL?

I.                   Introduction 

The Supreme Court is expected to release its decision in American Needle, Inc. v. NFL in the near future after hearing oral arguments on January 13, 2010.  [1]  In this case, the National Football League (NFL) is arguing that its teams operate as a single-entity and therefore cannot be held in violation of anti-trust laws.   Law professor Marc Edelman suggests that, “[i]f the court adopts the NFL’s single-entity concept, it would change everything.”  [2]  The view portrayed in Professor Edelman’s statement is shared by many as the result of this case is likely to have its impact on other major sports leagues as well.  While many of the implications for the NFL have been discussed through coverage of the case, this article suggests specifically how those changes would affect fans of the National Hockey League (NHL).   Read the rest

Excluding the Endowment Effect?

I. Introduction

                The Coase Theorem has no doubt left an indelible mark on Law and Economics. The theorem proposes that, absent transaction costs, property will be allocated efficiently regardless of initial entitlement.[1] Widespread acceptance of this assertion has given rise to much legal analysis aimed at reducing transaction costs in order to lubricate bargaining and achieve efficient allocation of property rights. On the whole this is not a bad thing – transaction costs are a major obstacle to efficient bargaining and should be reduced. However, recent studies which indicate the existence of the endowment effect have lead many scholars to re-examine their initial assumptions regarding the importance initial entitlement.[2]

II. Background

                A. The Coase Theorem

                The main premise of the Coase Theorem is that, absent transaction costs, property rights will be efficiently allocated regardless of initial entitlement.[3] This conclusion leads to two further assertions Read the rest

I’ll Stick with the Couch: How Personal Seat Licenses are Pricing The Average NFL Fan Out of the Live Game Market

Personal Seat Licenses (PSLs) have pit owners and stadium operators against the fans since their inception.  The idea of paying for a right to buy tickets in a specific seat, is repugnant to some, and good business sense to others.  This issue has come to the forefront recently as one of the most successful franchises in professional sports, the New York “Football” Giants, have started selling personal seat licenses to fund their new billion dollar stadium.  This new stadium will be home to the Giants and neighbor New York Jets.[1] This article outlines why owners would use such a system, arguments against the practice, and a quick look at potential alternatives.

Background:

PSLs are essentially the right to purchase a ticket to a game or an event.[2]  PSLs are usually one time fees that allow you right of first refusal to purchase tickets Read the rest

The Modern Role of the General Counsel as Corporate Lawyer & Business Executive

I. INTRODUCTION

The role of the General Counsel (GC) expands beyond the traditional chief legal officer of the company. [1] Scandals involving insider trading, white-collar crime, and the recent economic crisis have lead to the expansion of corporate governance regulations. [2] The GC serves as an overseer of corporate governance and compliance, therefore, it is important to analyze the board of directors’ methods for monitoring the expanding role of the GC. Furthermore, the many hats the GC wears in today’s modern corporation potentially includes holding dual roles as the corporation’s chief legal officer and a member of the executive management team. [3] This dual role will be analyzed to determine if the GC having a seat at the strategic management table benefits the corporation or hinders the GC’s role as the corporate police officer. [4] Given the complexity of the GC role and the important connection of the role to … Read the rest

Reading between the law: A case study of the Home Repair and Remodeling Act of Illinois

I.          Introduction

            When thinking about judicial activism, the first thing that comes to mind often is the Supreme Court of the United States making decisions regarding civil rights. However, judges expand the law and create exceptions thereto in many fields and at many levels. The purpose of this article is not to question whether judicial activism exists, or even whether or not it is proper to practice it. Instead, this article considers one instance of activism in an everyday legal situation and then analyzes a series of judicial approaches and considers the ramifications of each.

A trial judge in Illinois once ordered an unnecessary evidentiary hearing, noting that he would “err on the side of caution… and allow [the case] to go forward” hoping that “some day, [he would] be enlightened by the Appellate Court… [as to] whether there can ever be an exception to the application of … Read the rest

Should the United States Exempt Foreign-Source Income Similar to Foreign Business Partners?

        I.            Introduction

             In 1918, the United States enacted a foreign tax credit (FTC) system for taxing foreign-source business income earned by multinational corporations (MNCs). (1) This system, known as “worldwide” taxation is said to implement “capital export neutrality” by neutralizing a citizen’s decision between investing domestically or abroad. (2) About half of the Organization for Economic Co-operation (OECD) countries have adopted a similar approach. (3) However, as foreign trade agreements and the complexity of U.S. tax treatment continue to increase, a “territorial” taxation system, as implemented by the other half of OECD countries, might be worth considering in the United States. (4)

              This article will 1) define some of the underlying principles behind international tax policies, 2) suggest a proposal for a tax-exemption system, 3) explain how the proposal solves problems under the current system, and finally 4) attempt to rationalize potential criticisms surrounding Read the rest