Posted by Randy Barnett:

http://volokh.com/archives/archive_2005_06_12-2005_06_18.shtml#1118953549


   At lunch Dick Speidel (Northwestern) gave a tribute to the late Allan
   Farnsworth that asked, would an aspiring jobs candidate who said that
   he wanted to emulate Allanâs career be hired? Good question. Speidel
   characterizes Farnsworthâs approach as âLaw and Law.â At the end of
   his talk, he asks the audience to candidly answer the question for
   their own school and, if the honest answer is ânoâ this is a failing
   of American legal education. The heart of his talk is a remarkably
   accurate, though brief, overview of the intellectual developments in
   contract law scholarship during Farnsworthâs long career, from legal
   realism, to law and economics, to critical legal studies to rights
   theories (he includes my approach of âmanifested intention to create
   legal relationsâ in the latter category). Afterwards I commend him for
   his accuracy. I could not find fault with any of his story. Neither
   could Jay Feinman or Chuck Knapp with whom I spoke immediately
   afterwards.
   The last session of the day is called âContract Across the
   Curriculum.â Speakers are Margaret Friedlander Brinig (Iowa), Einer
   Elhague (Harvard) and Jody Freedman (UCLA). Turn out is much lower
   than âCritiquing Contract Lawâ before lunch--people may be
   sight-seeing--so I have a much better seat.
   Einer is first up. He says he is trying to finish two books this
   summer. One on contract default rules and the other on statutory
   default rules. Both books are based on the distinction between
   âpreference elicitingâ default rules and âpreference estimatingâ
   default rules.
   In contracts, he says, we normally want default rules that efficiently
   achieve the preference of the parties. This does not extend to
   statutory default rules which are not solely meant to serve efficiency
   grounds, and you cannot identify the group that is the "parties" to
   the statute. The public are not true parties within the legislative
   process. Nor are legislators who must take into account their
   constituentsâ, not merely their own preferences. So how does this
   affect the difference between default rules in contract and default
   rules in statutory interpretation? [to read the rest click on show]

   ([1]show)

   What we are really looking for with interpreting statutes is
   "enactable preferences." This assessment is a probabilistic judgment.
   (And I would add somewhat more speculative than with private
   contracts.)
   The second difference between contracts and statutes is that you are
   not bound by contracts unless you consent, whereas with statutes you
   are bound by acts of previous legislatures. So whose preferences do
   you look to? The enacting legislature or the current polity? He says
   that, paradoxically, previous legislators would want statutes
   interpreted according to evolving preferences--as this would increase
   the reach of the prior legislature into the future.
   He favors using a preference eliciting default rule for statutory
   interpretation (like a penalty default rule in contract law). In other
   words, adopt interpretations that will provoke a legislative override
   that will make it clear what the (current) legislature really wants
   today. This contrasts with a default rule that tries to guess what
   today's legislators would want (a "preference estimating" default
   rule). He then provides some examples of this approach in statutory
   interpretation. I am not doing his argument complete justice, but this
   is in part because the bulk of his analysis is in his articles and
   book draft and is only cursorily summarized here.
   Next up is Margaret Brinig (Iowa). Iowa is home to two great contract
   scholars: Steve Burton and Eric Anderson. Bob Hillman began his career
   at Iowa too. She begins by identifying the similarities between
   contracts and family law. She mentions how many casebooks start with
   family law cases like In Re Baby M (which is indeed the second case in
   my casebook). Family law cases are not only more relevant to students,
   she notes, but are more fun. Lee Marvin may be dead, but it is
   interesting to read about his palimony travails.
   Marriages begin with contracts. She then shows a clip from Princess
   Bride (one of my favorite films). It is the hysterical marriage scene.
   "Man and wife, say man and wife!" Wesley later says the marriage
   "never happened" because the princess never said "I do." "If you
   didn't say it," he tells her, "it never happened." What a great
   illustration of formalities. (In class I always use the breaking of
   the glass in Jewish ceremonies to illustrate the formality of assent.)
   After a lengthy discussion of how contracts play a role in family
   relationships and family law, she then asks why not simply
   contractualize the conception of marriage. (This is an approach to
   which I have been attracted to for a long time, as are many
   libertarians.) Here she thinks--citing my BU colleague Kate
   Silbaugh--commodifies the relationship and undermines the trust that
   should form the basis of the marital relationship. [Me: This is a
   topic in which (some) feminists and (some) social conservatives have
   common cause, as they also have with regard to pornography.]
   She concludes by discussing many aspects of the family that cannot be
   reduced to contractual terms, and how the legal enforcement of implied
   contracts may change the basic nature of family law. In the end, she
   affirms the difference between contracts and family law, despite their
   overlaps and similarities. This is a nicely delivered and nuanced
   talkâmuch more so than this cursory summary suggests.
   Jody Freeman (UCLA) is the last speaker. She is a very well-regarded
   younger scholar. This is my first opportunity to hear her speak.
   Indeed, this is one of the reasons to attend conferences like these.
   She is going to discuss how contracts overlap administrative and
   environmental law. She does not want to talk about âcontracting outâ
   government services or how regulations can be challenged as a taking
   of private contractual arrangements, but these two areas reveal an
   image of government regulation as contractual in nature.
   Many view regulations as "command and control," but she notes that
   regulation often begins with negotiation between the regulators and
   the regulated. So does the enforcement process. There is a lot of
   informal contract behavior within the so-called command and control
   system of regulation. There are significant limits to the extent that
   government ever commands or controls anything.
   So what she wants to examine is "agreement-based approaches to
   regulation." She says that Bush II uses negotiated regulation more
   than the Clinton administration did (and there is no pejorative tone
   in her voice when she says this). One example is negotiations over
   endangered species between the agency, developers, and environmental
   and municipal groups. These can lead to agreements that extend beyond
   the authority granted by the Endangered Species Act. The
   âconsiderationâ for this agreement is a "no surprises" policy which
   promises landowners that they can rely on these agreements when making
   and acting on their development plans. Some more examples of
   negotiated regulations follow, but I think you get the idea.
   One reaction to these "consent decrees" is how the nature of the
   consent deemed acceptable here is completely different than that
   demanded of ordinary contracts between business or with consumers.
   Consent obtained with the coercion of government regulation and
   enforcement is legitimate. Consent obtained by the "coercion" of
   refusing to do business on any other terms is deemed to be oppressive
   and a contract of "adhesion."
   I do not attribute this contradiction to Jody. She has repeatedly
   stressed that she is not a contracts person. (After the panel we talk,
   she tells me she wants to pursue this issue, of which she had not
   previously been aware.) But the contrast between the previous 2 panels
   ridiculing the meaningfulness of private consent, and the virtues of
   "consent decrees" is striking, if only to me. Appropriately she
   concludes her talk by asking whether this is really contract-like or
   an overextended metaphor? A good question indeed. This was a very
   interesting, substantive and engaging talk. She's a terrific speaker.
   During the brief question time, Carol Sanger (Columbia) notes that
   contracts are circumventing administrative agencies, which fits the
   tenor of the previous panels about the insidiousness of contract in
   other fields.
   From the floor, I suggest (as I do above) that, if she wants to pursue
   her metaphor, Jody needs to confront the contracts scholarship that
   contest the meaningfulness of consent between private
   actors--especially in light of the coercion brought to bear on private
   parties to obtain "consent decrees."
   Gillian Hadfield USC) agrees with this (though from the other
   direction) and adds that in the public sphere more classical contract
   principles are being used than are acceptable among contract scholars.
   Blogging is tiring. But maybe it is just being forced to pay close
   attention that is tiring. Or maybe it is the wonderful meals in
   Montreal. Whatever it is, I am tired.
   ([2]hide)

References

   1. file://localhost/var/www/powerblogs/volokh/posts/1118953549.html
   2. file://localhost/var/www/powerblogs/volokh/posts/1118953549.html

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