Showing papers in "Virginia Law Review in 1983"

Imperfect Information in Markets for Contract Terms: The Examples of Warranties and Security Interests

Abstract: The existence of imperfect information is thought to provide firms with incentives to degrade contract quality by supplying terms that well-informed consumers would refuse. We show, in contrast, that these incentives are weaker than is commonly supposed; rather, when consumers gather relatively little information, the profit maximizing strategy for firms is likely to involve offering the contract terms that consumers prefer, but at supracompetitive prices. In consequence, a standard state response to imperfect information problems, regulating the substantive terms of transactions, is often misplaced. When imperfect information exists, the state instead should reduce the costs to consumers of comparison shopping for contract terms, because such shopping reduces prices and also reduces further the incentive of firms to degrade contract quality.

Congressional Obligation to Provide a Forum for Constitutional Claims: Discriminatory Jurisdictional Rules and the Conflict of Laws

Abstract: Lea Brilmayer* and Stefan Underhill** In recent sessions of Congress, opponents of an "activist" judiciary have attempted to divert from federal courts issues such as abortion, school busing, and school prayer. The proposals to exclude these constitutional issues from federal courts have stirred great interest in the theory of federal court jurisdiction1 because the proposals seem to threaten the continued existence of controversial rights. The prospect of exploring the limits of congressional power to control federal court jurisdiction is especially attractive