Month: October 2007

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Economically Reprehensible Behavior, or Benefits and Risks of Morality? (2 of 2)

I. Introduction

This
second article in the series first identifies past assumptions of the
traditional investment model.  Possible additional benefits and
drawbacks of morally responsible investing (MRI) as compared to the
traditional model are pointed out along the way.  Finally, future legal
issues that MRI may raise are identified, and the court’s likely
treatment of such issues is hypothesized. 

II. Getting Past Those Assumptions

Several assumptions from traditional economic theory and law
seemingly hinder MRI.  However, the premises underlying these
assumptions are not on as solid footing as once perceived.  Some of
these assumptions include A) the decreased profitability of MRI, B) the
legal doctrine that a director’s sole responsibility is to maximize
profits and C) the gap between ownership and control in the public
corporation cannot be closed. 

Assumption A.  Traditional economic theory assumes that MRI is
less profitable than traditional instruments because profit
maximization is not the only

… Read the rest
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Economically Reprehensible Behavior, or Benefits and Risks of Morality? (2 of 2)

Introduction: 

This
second article in the series first identifies past assumptions of the
traditional investment model.  Possible additional benefits and
drawbacks of morally responsible investing (MRI) as compared to the
traditional model are pointed out along the way.  Finally, future legal
issues that MRI may raise are identified, and the court’s likely
treatment of such issues is hypothesized. 

II. Getting Past those Assumptions

Several assumptions from traditional economic theory and law
seemingly hinder MRI.  However, the premises underlying these
assumptions are not on as solid footing as once perceived.  Some of
these assumptions include A) the decreased profitability of MRI, B) the
legal doctrine that a director’s sole responsibility is to maximize
profits and C) the gap between ownership and control in the public
corporation cannot be closed. 

Assumption A.  Traditional economic theory assumes that MRI is
less profitable than traditional instruments because profit
maximization is not the only goal

… Read the rest
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Post-Merger: What’s in a Name?

Amongst the due diligence, negotiations, and deal making in crafting a merger between two companies, one issue that arises is what to name the new company.  A newly merged company’s choice of name may have much to do with how shareholders, customers, and other corporate constituents perceive the newly merged company.

As one example of the importance of names, it has been previously estimated that among law firms “about half of the proposed mergers among equal-sized firms, with living, named partners, fail on the issue of firm name alone.”[1]  While this sounds drastic, choosing a name for a newly-merged company seems to have at least some bearing on the future business of the company.

In some instances, changing names after a corporate transaction can be a positive signal to corporate workers and consumers.  After DaimlerChrysler sold its majority interest in Chrysler, Chrysler celebrated its return to its pre-merger name and

… Read the rest
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The Trade-off: Land for Fewer Dropped Calls

With 171 million wireless subscribers in the United States, it is no surprise that the number of cellular phone transmission towers grew from 22,663 in 1995 to 104,288 in 2000. [1] These towers range from fifteen to twenty stories tall, and can make quite a statement when added to a city block or neighborhood park. [2] Residents of cities all across America have protested the planting of these unsightly towers in their neighborhoods, but the Cellular Telecommunications & Internet Association has reported that "dead spots and dropped calls can be eliminated only by new cell sites." [3] Faced with that reality, we are forced to decide which is the lesser of two evils: dropped calls or backyard barbeques next to a cell phone tower.

No matter how much people refuse to live without wireless technology, the common reaction of communities is to keep those cell towers as far away from

… Read the rest
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“Second Life” Challenges the Boundaries of Law in Cyberspace

I.  Introduction
Virtual reality is fast becoming a mainstay in today’s modern culture of computer savvy citizens all over the world.  [1]  It is a concept of real time and space existing within a construct comprised entirely of a dynamic, streaming assembly of 1’s and 0’s of binary programming language, translated into an individual’s online world.  As the complexity and realism of these interactive virtual playgrounds increase, users have adapted a plethora of entrepreneurial opportunities that test the legal boundaries of laws throughout the world, including those of the United States.  [2]   

As esoteric as the concept of a body of law existing in a domain lacking a tangible, physical existence may seem, society is now witnessing the birth of an age where laws do exist in virtual worlds.  These laws are continually evolving and adapting to the breakneck speed at which technology pushes the envelope forward.  [3]  But where

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FMRI and DNA Gene Sequence Mapping Provide Promising Technologies with an Orwellian [1] Price Tag

I. Introduction

 

Functional Magnetic Resonance Imaging (FMRI) and DNA sequence mapping provide technologies that offer society unprecedented benefits, but at a cost that we are only beginning to understand.  [2]  FMRI, for example, enables researchers to map the brain's neurons as they process thoughts, sensations, memories and motor commands. [3] This provides neurologists with the ability to detect early onset of Alzheimer's disease and other ailments without invasive surgery.  [4]  It also can be used as a next generation lie detector in that it provides an almost infallible insight into a person's thought process that detects deception, raising obvious concerns about our civil liberties and right to privacy.  [5]  

DNA sequence screening, on the other hand, involves the study of genes and the notion that they are determinative of an individual's behavior, character, and future medical problems.  [6]  Diseases such as Crohn's disease, night blindness, Lupus, and emphysema  and

… Read the rest
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Billable Hours Be Gone: Should the Hourly Billing System Be Replaced?

I. Introduction

Law firms have adjusted to recent generations of associates that demand a better quality of life in conjunction with their careers. [1] A young lawyer wants it all: a successful career, a family, and time for a social-life outside the office. "Work/life balance" has become a buzzword for firms attempting to recruit the best and brightest. Some firms have responded to the needs of working parents who prioritize childrearing by offering reduced and alternative working schedules. [2] Others allow associates to bill some of their time to pro bono work, which increases the esteem of the profession [3] in addition to satiating a young associate's need to make a difference. While programs such as these move toward the much sought after "work/life balance." they may not be enough to truly achieve a happy, well-balanced life.

"[Practicing law] has become a soul-destroying business. . . . The cynics flourish, … Read the rest

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RIAA Advances the Legal Battle Against Piracy

I. Introduction

The Recording Industry Association of America’s (RIAA) recent victory over alleged file-sharer Jammie Thomas represents the latest step in their lengthy and costly legal campaign against online music piracy. Since its 1999 lawsuit against Napster [1], the RIAA has been engaged in non-stop litigation against a variety of alleged infringers, from centralized distribution networks to decentralized peer-to-peer networks. “In September of 2003, the RIAA adjusted their legal strategy and began to sue individuals suspected of sharing music files online.”  [2]  Barring a successful appeal, the verdict against Thomas potentially sets several  legal precedents favorable to the RIAA.

 

 

II. Background

The launch of Napster in 1999 touched off the RIAA’s recent blitz of lawsuits against a wide assortment of file-sharers and copyright infringers. Prior to Napster’s 1999 launch, only sophisticated computer users engaged in extensive file-sharing. The release of user-friendly Napster quickly popularized the

… Read the rest
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Do Hedge Funds Need To Be Better Regulated?

Introduction

One of the hottest topics, when Wall Street recently saw a market turmoil, was whether hedge funds need to be more strictly regulated. As a special investment vehicle designed for large institutions and rich personal investors, hedge funds are notorious for their ruthless trading strategies aiming to reap as high absolute returns as possible, which usually came with very high risks. The financial leverages hedge funds often utilize had more or less contributed to almost every financial crisis we have faced in the last decades. Typical examples include the fall of Long Term Capital Management (LTCM) in late 1990s and its recent counterpart Amaranth in 2006.

 

Therefore, the world has recently seen a desire to put more strict regulations to curb hedge funds by most countries. This was well manifested by what was happening in Germany, which had already started a series of legislatorial moves “against” hedge fund.

… Read the rest
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Financing Space Assets and Private Business Entities (Part I)

I. Introduction

A. Space Technology and Law

     Have you ever thought about who owns the satellite when you listen to the satellite radio, or watch satellite television? While society benefits from the satellite technology such as satellite television, radio, navigation, phone and so on, international organizations, governments and space industry are disputing over the ownership of the satellites, what space assets are, and how to get financing. Likewise, defining space assets and the protection of financiers to space assets is very new and critical for the entertainment and space industries. This is because of the tremendous capital and interest of investors is related to space assets and they have great potential to be developed more.
     Although the space technology contributes to the entertainment industry only with the satellite technology for now, it is being developed and improved. A lot of investors are willing to involve the … Read the rest