Band 13, Heft 3

Using a game-theoretic analysis, this study aims to investigate which of the “all or nothing” and “pro rata” methods, regarding the sanction against the breach of duty to disclose in insurance contracts by negligence, is better from two perspectives: one is in terms of how much the sanction increases the policyholder’s probability of effort, while the other is how much it increases the probability of finding the wrong type of policyholder by insurance firms. From the analysis, we find that the desirable method depends on the probability that the policyholders can effortlessly determine their precise risk type as well as their effort cost level.

Ancient law can be analyzed using economic tools. With a renewed interest from the political class to make the ancient Laws of Manu (Manu’s Dharmaśāstra ) more relevant to modern Indian law, the economic analysis of the Laws of Manu regarding contracts allows us to look at the issue from an efficiency standpoint. The paper will look at both regular contracts and marriage contracts. Surprisingly, many of the ancient laws are like the modern law of contracts especially in areas of contract breach. However, when considering marriage contracts, the bargaining position of men is stronger than women.

This study examined the reasons for the decline in the plaintiff win rate in medical lawsuits in Japan since 1999. The results suggest that the decline in the plaintiff win rate is likely due to the overall shortening of trial periods. In particular, if the trial period is shortened by one month, the plaintiff win rate decreases by 1.63%. After indicating the correlation between a decrease in plaintiffs’ winning rate and a shortened trial period, this study examines the causal relationship from five perspectives and the substantive factors.

Would a shift to a Federal system raise or lower corruption in low-income countries? Local ownership, which is a strong argument for control of corruption under a Federal system, may not always be effective in jurisdictions with weak institutions. Our theoretical model shows that the net effect of these conflicting pressures cannot be determined a priori . Thus, we test empirically whether de jure federalism and/or de facto federalism are each a good predictor of control of corruption. We find that in countries with sufficiently high quality of governance or levels of development, neither de jure federalism nor de facto federalism matters as much as other dimensions of governance. However, in countries with poor governance, de jure federalism may have an adverse effect on control of corruption. A developing economy, which ranks poorly in terms of governance, cannot expect a reduction in corruption to follow a shift to a Federal system.

Accounting fraud and auditing fraud are important areas of research that have both theoretical and practical implications. A strong and sound code of ethics and ethical values are in place in order to prevent these frauds. The study investigates the impact of the code of ethics and audit firms’ corporate ethical values on auditors’ ethical judgment in Vietnam. Based on questionnaires collected from Vietnamese auditors, the results of the study indicate that the code of ethics for professional accountants has a significant influence on the auditors’ ethical judgment. Whereas the finding only shows minor support for the influence of the audit firms’ corporate ethical values on the auditors’ ethical judgment. The study has implications for audit firms and professional bodies in their continuous efforts to promote understanding and compliance with the code of ethics and develop a strong corporate ethical culture in the firms.

Cross-border data flows is a crucial factor in digital economy. Article 12.14 (2) and Article 12.15 (2) in RCEP stipulate the prohibitive norms on data localization, aiming to ensure the data is transferred freely. Except some other clauses indirectly stipulate some circumstances for excluding the use of the prohibitive norms, Article 12.14 (3) and Article 12.15 (3) directly stipulate the exception clauses of data localization, i.e., the clause of legitimate public policy, horizontal provisions, and clause of the essential security interests. The WTO case-laws show that the aforesaid concepts should be interpreted by the Parties according to their own reality. The norms on “anti-discrimination” and “anti-disguised restriction” are to prevent the “clause of legitimate public policy” from being abused. To understand these norms, we need to evaluate the substantive purposes of the concrete measures launched by the states, and then clarify the relations between aforesaid purposes and the legitimate public policy objective.