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Volume 2.2
The Chinese Antitrust Paradox
Wentong Zheng
Professor of Law, University of Florida Levin College of Law

I thank Donald Clarke, Mary Gallagher, Nicholas Howson, Benjamin Lieberman, Julia Ya Qin, Angela Huyue Zhang, and participants in the “China’s Legal Construction Program at 40 Years: Towards an Autonomous Legal System?” conference at the University of Michigan Law School for helpful comments on an earlier draft of the article.

Antitrust law faces a fundamental paradox between protecting competition and protecting competitors. This paradox is more structurally durable in China than in Western societies thanks to the oversized role of the Chinese state in its economy. This Article examines the changing market conditions in China following the adoption of China’s Antimonopoly Law (AML), and how these changes have led to paradoxical developments in Chinese antitrust.

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Comment
Volume 2.2
How to Fix DOJ Privilege Teams
Anna Dincher
J.D. Candidate 2024, University of Chicago Law School

Many thanks to Professor Anthony Casey for his thoughtful insights and charitable guidance. Thank you to the University of Chicago Business Law Review editorial staff, and special thanks to J.P. Callahan for incredibly helpful feedback.

The federal government frequently executes searches and seizures in the course of criminal investigations. Many of the premises searched contain materials protected by privileges, placing them outside the reach of the Department of Justice. However, again and again those materials are swept up, potentially landing in the hands of government attorneys who are not permitted to review them—placing defendants’ Sixth Amendment right to effective assistance of counsel at risk of being violated.

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Comment
Volume 2.2
The Commission Goes to Walmart: Changing Patterns of FTC Enforcement
Jed Greenberg
J.D. Candidate 2024, University of Chicago Law School

The FTC Act allows the FTC to recover monetary relief only in certain circumstances. Under Sections 5 and 19, the Commission can recover monetary relief in federal court by showing that a party violated a final cease and desist order issued through administrative processes. Until recently, the FTC extensively used Section 13 of the Act, which courts had interpreted to provide some pathways to monetary relief.

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Comment
Volume 2.2
A Disclosure Gap in the Market for Order Flow
Joshua Nathanson
J.D. 2023, The University of Chicago Law School

I am grateful to Professor Joshua Macey and Anna Nathanson for their invaluable comments and edits.

Wholesalers in U.S. equity markets are once again a focus of the SEC and scholarly debate. In this Comment, building on the empirical work of Schwarz, et. al. (2022), I present a model of the broker-wholesaler relationship based on the duty of best execution under FINRA Rule 5310 and the antifraud provisions of the federal securities laws as well as public disclosures by brokers and wholesalers.

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Comment
Volume 2.2
Workers of the World, Differentiate: Expanding Protections for Workers in the Age of Labor Antitrust
Sarah Hammond Roberts
B.A. 2020, The University of California, Berkeley; J.D. Candidate 2024, The University of Chicago Law School

Many thanks to the entire University of Chicago Business Law Review, especially Spencer Parts, and to Professor Randal Picker for help and comments. I would like to especially thank Professor Eric Posner for his thoughtful suggestions regarding this Comment, and his guidance in thinking about labor antitrust.

Antitrust has traditionally served consumers—how can the law regulate firms in a manner that prevents monopolization and preserves competition among sellers of goods? A recent turn in scholarship and shifting application of antitrust law from a regulatory perspective suggests the possibility for a broader expansion of antitrust protections into the labor market.

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Volume 2.1
A Critique of The American Law Institute’s Draft Restatement of the Corporate Objective
Stephen M. Bainbridge
William D. Warren Distinguished Professor of Law, UCLA School of Law

The American Law Institute (ALI) is currently working on a Restatement of the Law of Corporate Governance (Restatement). At the ALI’s May 2022 annual meeting, the membership approved, inter alia, § 2.01, which purports to restate the objective of the corporation. Section 2.01 differentiates between what the drafters refer to as common law jurisdictions and stakeholder jurisdictions.

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Volume 2.1
The (Mis)uses of the S&P 500
Adriana Z. Robertson
Donald N. Pritzker Professor of Business Law, University of Chicago Law School. arobertson@uchicago.edu

This article was originally drafted in 2018. While the arguments remain equally relevant today, the data and analysis date to that time. I would like to thank Pat Akey, Benjamin Alarie, Anita Anand, Oren Bar-Gill, William Birdthistle, Bernie Black, Vincent Buccola, Ignacio Cofone, Mary Condon, Peter Cziraki, Jared Ellias, Jeff Gordon, Andrew Green, Will Goetzmann, Jill Fisch, Gillian Hadfield, Jim Hines, Richard Hynes, Joshua Mitts, Ed Morrison, Roger Myerson, Anthony Niblett, Shu-Yi Oei, Omer Pelled, Roberta Romano, Sarath Sanga, Holger Spamann, Michael Trebilcock, Andrew Verstein, Albert Yoon, an anonymous referee, and the editors of the University of Chicago Business Law Review, as well as seminar participants at the Canadian Economics Association annual meeting, the Conference on Empirical Legal Studies, DiTella University, Northwestern University Pritzker School of Law, the Purdy Crawford Emerging Business Law Scholars Workshop, the STILE Law & Economics Workshop, the University of Chicago Law School, the University of Pennsylvania Carey Law School, the University of Southern California Gould School of Law, and the University of Toronto Faculty of Law. Financial support from the Tory Fund and the Connaught New Researcher Award are gratefully acknowledged. Alvin Yau provided exceptional research assistance. All remaining errors and shortcomings are my own.

The S&P 500 is widely used to (i) direct capital through “passive” investing, (ii) benchmark investment portfolios, and (iii) evaluate firm performance. The securities regulatory regime’s approach to each of these uses is fundamentally flawed. I show that the index is neither neutral nor constant: it represents substantial amounts of discretionary decision-making and is simply one particular large-cap portfolio.

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Volume 2.1
Banking on the Edge
Graham S. Steele
Assistant Secretary for Financial Institutions, U.S. Department of the Treasury, and former Minority Chief Counsel, U.S. Senate Committee on Banking, Housing, and Urban Affairs

The author’s professional affiliation is provided for identification purposes only. The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency of the U.S. government. The author is grateful to Jeremy Kress, Patricia McCoy, Arthur E. Wilmarth, Jr., Heidi Mandanis Schooner, Saule Omarova, Thomas Hoenig, and Anat Admati for their insightful comments and feedback. Most importantly, great thanks to the talented staff of the University of Chicago Business Law Review for their hard work and substantial improvements to this Article.

What’s old is new again. The risks of international banking have returned to prominence in the wake of the Russian invasion of Ukraine. Global banks are playing a central role in the economic sanctions regime imposed upon Russia in response to its acts of military aggression. Foreign banks have retrenched from serving the Russian economy. International markets for debt, equity, and commodities are experiencing significant disruptions. The solvency measures and quarterly earnings of global banks have been impacted. These risks are new versions of an old story.

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Volume 2.1
Unplugging Heartbeat Trades and Reforming the Taxation of ETFs
Jeffrey M. Colon
Professor of Law, Fordham University School of Law

I would like to thank Anna Heim and Xinran Hu for their excellent research assistance.

The much-touted tax efficiency of equity exchange traded funds (ETFs) has historically been built upon portfolios that track indices with low turnover and the tax exemption for in-kind distributions of appreciated property.

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Comment
Volume 2.1
Material Regulation of Out-of-State Production Processes as Impermissible Extraterritorial Law
Rebecca Zhu
J.D. Candidate 2023, The University of Chicago Law School

Many thanks to the editors and staff of the University of Chicago Business Law Review and to Professor Joan E. Neal for their valuable feedback.

A circuit split exists on whether the Supreme Court limited the Dormant Commerce Clause’s extraterritoriality doctrine to price affirmation statutes in Pharmaceutical Research & Manufacturers of America v. Walsh. This Comment argues that the Supreme Court has never drawn this limiting principle—in Walsh or otherwise—such that the Ninth Circuit incorrectly characterized Walsh in National Pork Producers Council v. Ross, and it should have held that the district court’s dependence on this reading constituted clear error in North American Meat Institute v. Becerra.

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Volume 1.1
ESG and Private Ordering
Michal Barzuza
Professor of Law, University of Virginia School of Law

For useful comments and suggestions we are grateful to Elizabeth Pollman and participants at the University of Chicago Business Law review, inaugural symposium.

Quinn Curtis
Albert Clark Tate, Jr., Professor of Law, University of Virginia School of Law
David H. Webber
Professor of Law and Paul M. Siskind Research Scholar, Boston University School of Law

Easterbrook and Fischel’s seminal book The Economic Structure of Corporate Law has taught us the crucial role of markets in shaping the corporate contract. With the rise of ESG, the nature of that contract is changing, but the importance of markets (and of their limitations) is not. In this piece, building on our previous work that traces the remarkable growth of ESG to a shift in demand, primarily, but not solely, among millennials, we discuss the role of markets in shaping ESG, as well as their limitations.

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Volume 1.1
Competing Views on the Economic Structure of Corporate Law
Lucian A. Bebchuk
James Barr Ames Professor of Law, Economics, and Finance, and Director of the Program on Corporate Governance, Harvard Law School

For disclosure of other affiliations and activities, see http://www.law.harvard.edu/faculty/bebchuk/bio.shtml. I benefitted from discussions with and comments from Scott Hirst, Kobi Kastiel, and participants in the University of Chicago Symposium on the Economic Structure of Corporate Law.

Written for a symposium issue celebrating the thirty-year anniversary of the publication of The Economic Structure of Corporate Law by Frank Easterbrook and Daniel Fischel (“E&F”), this Essay discusses the interaction of my research over the years with their writings. During the period in which the book and articles were written, and in the many years since then, I have paid close attention to E&F’s writings in my research in the economics of corporate governance.