Faculty


Puerto Rico’s Debt Dilemma and Pathways Toward Sovereign Solvency

American Business Law Journal, Vol. 54, No. 1, 2017

Stephen Park

Puerto Rico, as a quasi-sovereign U.S. territory, is confronting a debt crisis of unparalleled legal complexity. This article analyzes the collective action problems in sovereign debt finance in the context of Puerto Rico’s quasi-sovereign debt dilemma. We examine how sovereign debtors engage with their private creditors in the absence of a formal bankruptcy regime and show how various legal incentives, imperatives, and constraints shape the degree and form of creditor engagement. Drawing on this conceptual framework, this article analyzes the role of these factors in the market-based debt restructuring by the Puerto Rico Electric Power Authority (PREPA) and hypothesizes how these factors may influence the statutory restructuring process underway under the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA). Despite the idiosyncratic aspects of Puerto Rico’s debt crisis, the potential pathways for debtor-creditor cooperation in Puerto Rico provide valuable insights on the various ways that law influences debtor-creditor cooperation in sovereign debt finance beyond the enforcement of state-based public regulation and contract-based private legal commitments. Full article.


Using Proactive Legal Strategies for Corporate Environmental Sustainability

Berger-Walliser, G., Shrivastava, P., Sulkowski, A. Using Proactive Legal Strategies for Corporate Environmental Sustainability. 6 Michigan Journal of Environmental and Administrative Law, 1-36 (2016). Date Published: June 2017

Gerlinde Berger-Walliser

We argue that proactive law can help organizations be more sustainable. Toward that end, this Article first summarizes proactive law literature as it pertains to corporate sustainability. Next, it examines a series of cases on the pivotal nexus between proactive law and corporate sustainability. It then advances novel propositions that connect proactive law to central organizational design elements. The discussion traces further implications and suggests fruitful avenues for research and ways of using proactive law for firms to become more sustainable. Full article.


From Visualization to Legal Design: A Collaborative and Creative Process

American Business Law Journal, Vol. 54, No. 2, Summer 2017, p. 347-392

Gerlinde Berger-Walliser

Although the law remains predominately focused on the written word, a growing body of scholarship and legal practice reflect a dramatic increase in the use of visualization in virtually every legal context. Three starting assumptions underpin our ideas of implementing visualization ideas and techniques into what we call “Legal Design” that may aid contract simplification:

First, we examine the use of images in business documents and in statutes, rather than for advocacy. Moving away from adversarial settings offers several advantages. It permits us to illustrate the use of images in a broader range of practical legal applications. It also enables us to adopt the thinking, values, and methods of a non-traditional approach to lawyering and the law: “Preventive Law” or “Proactive Law” (combined here as “PPL”). Second, we offer guidelines for using images in conjunction with words rather than in isolation, since the law only rarely abandons its verbal expression. Realistically, visualization is almost always used in hybrid ways — combinations of words and images to enhance the effectiveness of communication. That seems unlikely to change, given the need for detail and refinement when the law is imposing duties on people. Finally, our method analyzes variables surrounding choices and consequences about the process of generating, transmitting, and using images to accompany legal language. Examining this dynamic can deepen our understanding of the information conveyed; it can also reveal the potential of visualization for creating spillover value for businesses or regulatory agencies that employ the images to advance legal and organizational effectiveness. Full article.


Folta to Oversee Professional Group

Westfair Communications – University of Connecticut management professor Timothy B. Folta has been elected to a five-year term overseeing the Business Policy and Strategy (BPS) Division of the Academy of Management. The academy is an organization of management educators, with more than 19,000 members in 120 countries. In addition to hosting conferences and supporting research, it publishes six research journals. The BPS division has more than 5,000 members.


Precarious Work: The Need for Flextime Employment Rights and Proposals for Reform

Berkeley Journal of Employment & Labor Law, Vol. 37, Issue 1 (2016)

Robert Bird

Millions of Americans are under intense pressure to balance work and family responsibilities. The feeling of overwork is rampant, with nearly half of employees feeling overworked or overwhelmed by their workplace responsibilities. This Article argues for a suite of legal protections that would allow working families, especially single-parent and low-income families, basic access to the rights and protections of flexible work. These protections include amending FLSA rides to better protect non-exempt workers from intrusions into their non-working time, as well as expanding the use of the FMLA to encourage more use of flexible leave. This article also recommends adoption of right-to-request legislation, enabling employees to request a flexible schedule and have that request meaningfully evaluated by their employer without fear of retaliation. Full article.

Turning Corporate Compliance into Competitive Advantage

University of Pennsylvania Journal of Business Law, Vol. 19, No.2 (2017)

Robert Bird, Stephen Park

Compliance is a core concern for corporate governance. Firms devote tremendous amounts of money, personnel, and attention to ensure compliance with regulatory mandates — and yet compliance failures proliferate. This is because the current static and binary view of compliance hinders both efficient compliance by firms and effective regulation by government. Understanding the reality that compliance is both dynamic and driven by efficiency empowers firms to evolve past mere conformance and into wealth maximizing innovation. This Article develops an efficient investment-risk (EIR) model of compliance that captures the tradeoffs between cost and risk, parses the oft-commingled concepts of technical efficiency and allocative efficiency, and enables firms to obtain a competitive advantage through compliance. We also turn our attention to regulators, and highlight how the EIR model can enhance regulatory design, foster regulator-firm cooperation, and advance the mutual goals of business and society. Full article.

There’s One Major Thing Everyone Gets Wrong About Amazon and the Retail Apocalypse

Business Insider – Amazon and the rise of online shopping have been repeatedly blamed for the staggering rate of store closures and bankruptcies disrupting the retail industry in the US.

But e-commerce accounts for only a small fraction of the problems pushing many American retailers to the brink of death, according to Doug Stephens, a retail-industry consultant.



CT at Center of Corporate Relocation Strategy

Hartford Business Journal – Health insurer Aetna’s decision to relocate top-level employees to New York City, while maintaining the bulk of its workforce in Hartford, is part of a nationwide management trend in which companies are increasingly separating their corporate executives from the rest of their workforce.


What Do Measures of Real-Time Corporate Sales Tell Us About Earnings Surprises and Post-Announcement Returns?

Harvard Law School Forum on Corporate Governance and Financial RegulationNamho Kang is Assistant Professor of Finance at the University of Connecticut. This post is based on a recent paper authored by Professor Kang; Kenneth A. Froot, Research Associate at the National Bureau of Economic Research; Gideon Ozik, Affiliate Professor of Finance at EDHEC Business School; and Ronnie Sadka, Professor of Finance at Boston College Carroll School of Management.