Exploitative Businesses and the Perpetuation of Poverty

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walker-thomas_furniture_signProf. David Papke has a new article in print, entitled “Perpetuating Poverty: Exploitative Businesses, the Urban Poor, and the Failure of Reform,” appearing in 16 St. Mary’s Law Review on Race & Social Justice 223 (2014). Here is the abstract:

While rent-to-own outlets, payday lenders, and title pawns operate in suburban and rural areas, these exploitative businesses are most concentrated in America’s inner cities. The businesses’ highly crafted, standardized contractual agreements are central in their business models and for the most part enforceable in the courts. What’s more, the contractual agreements and business models are so sophisticated and adjustable as to make them virtually impervious to regulation or legislative reform. The businesses as a result continue not only to exploit the urban poor but also to socioeconomically subjugate them by trapping them into a ceaseless debt cycle. Profits go up when the urban poor cannot pay up, and rent-to-own outlets, payday lenders, and title pawns take advantage of urban poverty while simultaneously increasing and perpetuating it.

An earlier draft of the paper appeared on SSRN.

Welcome to Our February Blogger

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ValentinesdaytreeDue to an unavoidable last-minute cancellation, we’re a few days late rotating out our guest bloggers, but I’m delighted to announce that 1L Lauren Koehler has agreed to step in on short notice as our February guest blogger.  Lauren was born and raised in Michigan, got her B.A. in English from Boston University, and is interested in real estate law. She is an avid hockey fan. A belated thanks to our previous guest, 2L Vanessa Richmond.

What Is the NBA?

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basketballProfessor Nadelle Grossman has another forthcoming publication, “What Is the NBA?”, written for the faculty symposium issue of the Marquette Sports Law Review.  The abstract is below, and you can access the full article at SSRN:

The NBA’s organizational structure is curious.  While courts at times refer to the NBA as a joint venture and at other times as a single entity, their analyses are conducted not for state organization law purposes but to assess the NBA’s compliance with federal antitrust law.  Commentators, too, consistently address the NBA’s organizational structure only under antitrust law and not state organization law. As I argue, given the different purposes of these two legal regimes — antitrust law to protect consumers through preserving competition, and state organization law to ensure managers are faithful to the business purpose and to create a default structure among owners and managers — conclusions about the NBA’s organizational structure for purposes of compliance with antitrust law does not control the analysis of the NBA’s structure for purposes of state organization law.

To fill the gap in case law and commentary, this article analyzes the NBA’s organizational form under state organization law.  This analysis is important because the NBA’s organizational form impacts the rights and duties of the member team-owners of the NBA.  If, for example, the NBA is a joint venture partnership under state organization law — that is, an association of team owners who have come together to pursue a limited scope business for profit — then by default, its members would owe fiduciary duties to the other members and any member could seek judicial expulsion of a recalcitrant member.

Casual Convergence in Unincorporated Entity Law

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offices-at-night-smProfessor Nadelle Grossman has a forthcoming book chapter entitled “Casual Convergence in Unincorporated Entity Law” in the Research Handbook on Partnerships, LLCs and Alternative Forms of Business Organizations (Robert W. Hillman & Mark J. Loewenstein eds., Edward Elgar Publ’g forthcoming 2015).  The abstract is below. You can access Prof. Grossman’s full book chapter at SSRN.

As seemingly uniform as the surface of the sea, unincorporated entity acts in most states are drafted from one of the National Conference of Commissioners on Uniform State Law’s (NCCUSL) uniform acts.  In fact, by the end of 2013, seven states had adopted NCCUSL’s latest uniform act governing limited liability companies (LLCs), called the Revised Uniform Limited Liability Company Act, or RULLCA, and more have since followed.

Supporters of uniformity, including NCCUSL, argue that uniformity among state LLC acts generates administrative and cost savings.  Critics, on the other hand, argue that uniformity undermines state experimentation to achieve more efficient LLC laws.

However, I argue in the chapter that these debates about uniformity are misguided.  Continue reading “Casual Convergence in Unincorporated Entity Law”

Welcome to Jonathan Koenig

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koenigI’m very pleased to announce that Marquette Law Adjunct Professor Jonathan Koenig will be writing a series of posts for the blog on two of his areas of interest, federal sentencing and supervised release, with the first post to come later this morning. Prof. Koenig is Appellate Division Chief in the U.S. Attorney’s Office for the Eastern District of Wisconsin. He has been a federal prosecutor for twelve years and argues frequently before the U.S. Court of Appeals for the Seventh Circuit. He currently teaches Appellate Writing and Advocacy.