The Debate over Statutory History

An interesting debate about statutory history emerged at the Wisconsin Supreme Court this past term in County of Dane v. LIRC (2009 WI 9).  By statutory history, the court is referring to previous versions of a statute, which the legislature has subsequently repealed or revised.  Even prior to County of Dane, the court had stated, “By analyzing the changes the legislature has made over the course of several years, we may be assisted in arriving at the meaning of a statute.”  Richards v. Badger Mutual Insurance (2008 WI 52).

The current debate centers on whether reliance on statutory history is consistent with a plain meaning analysis.  Justice Roggensack has asserted, “statutory history is part of a plain meaning analysis because it is part of the context in which we interpret statutory terms.”  Chief Justice Abrahamson, on the other hand, asserts that statutory history is inconsistent with a plain meaning analysis because if the text is plain, there is no need to go beyond the text.

While the intellectual debate over statutory history is commendable, the arguments thus far have been misplaced, and as a result, we should refocus the debate.  The debate should not center on whether statutory history is consistent with a plain meaning analysis because such a debate does not answer when and how statutory history can be utilized.  As such, the current debate is meaningless.   Rather, the debate should center on whether statutory history is an intrinsic or extrinsic aid to interpretation.    

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Recession Haggling

bazaarThis week, Time Magazine had a great article on haggling during the recession. (Thanks to Jerry Olivo for sending this along.)  Although apparently we don’t usually negotiate retail items, the recession has encouraged plenty of shoppers to dust off those negotiation skills and try to negotiate items that are typically not open for discussion. 

Think you should haggle only when buying a car or shopping in the streets of Morocco? In this recession, if you’re not bargaining for everything everywhere, you’re needlessly draining your wallet. According to the consulting firm America’s Research Group, in October, 56% of consumers said they had recently tried to negotiate at retail outlets other than car dealerships. Of those hagglers, 50% got deals. When the company repeated the survey in May, 72% of consumers said they had tried to haggle, and a stunning 80% were successful. “What you can do today is unbelievable,” says Herb Cohen, an expert dealmaker and the author of the 1980 classic You Can Negotiate Anything. “Americans may finally learn that price tags weren’t put there by the big printer in the sky.”

It sounds like a perfect time for negotiation students everywhere to test those skills and ask for what you want.  As the article notes, you might start out feeling sheepish but will end up finding the process rather exhilarating.

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Regulation and the Second Law of Thermodynamics

stephen_hawkingAt first blush, one would not think that Barney Frank and Stephen Hawking would have anything in common.  The first is the Chairman of the House Financial Services Committee, and is currently conducting hearings on the regulatory reform of the financial markets.  The second is the noted University of Cambridge professor of theoretical physics and the author of the best selling book A Brief History of Time.

 However, in my mind both men are associated with the Second Law of Thermodynamics.  This law of physics states that the entropy of an isolated system always increases over time.  Stephen Hawking described it in more comprehensible terms in A Brief History of Time:

It is a common experience that disorder will increase if things are left to themselves.  . . .  In any closed system disorder, or entropy, always increases with time.

 Therefore, when I think of Hawking, I think of someone who can explain the Second Law of Thermodynamics.  When I think of Barney Frank, I think of someone who is desperately trying to avoid its operation.

I would contend that all forms of market regulation follow the Second Law of Thermodynamics.  In each case, a comprehensive statutory scheme is enacted as law, it imposes a closed system of rules on market actors, and over time the scheme inexorably breaks down.  Federal securities regulation, which began with the Securities Act of 1933 and the Securities Exchange Act of 1934, provides the perfect case history of this principle in action.

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