{"title":"Symposium, Cannabis—Legal, Ethical, and Compliance Issues: Introduction","authors":"Gideon Mark, Laurie A. Lucas","doi":"10.1111/ablj.12176","DOIUrl":"10.1111/ablj.12176","url":null,"abstract":"<p>This introduction reviews six articles presented at the 2020 symposium, “Legal, Ethical, and Compliance Issues in Emerging Markets: Cannabis in the States.” Scholars from across the United States and Canada presented research using the lens of law and strategy, ethics, and compliance to focus on the U.S. cannabis industry. The articles are discussed within the framework of institutional voids common to emerging markets, which may include a lack of a fully developed regulatory system and issues related to financial markets. These institutional problems create complexity for consumers, producers, municipalities, and state governments in this industry, and make success for this market segment more challenging. The introduction contributes to the discussion by reviewing securities litigation involving the cannabis industry generally and specifically in light of some of the issues identified by authors in the special issue.</p>","PeriodicalId":54186,"journal":{"name":"American Business Law Journal","volume":"57 4","pages":"651-676"},"PeriodicalIF":1.2,"publicationDate":"2021-04-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1111/ablj.12176","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41542086","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"社会学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Cannabis Regulatory Confusion and Its Impact on Consumer Adoption","authors":"Stephanie Geiger-Oneto, Robert Sprague","doi":"10.1111/ablj.12171","DOIUrl":"10.1111/ablj.12171","url":null,"abstract":"<p><i>The regulation of cannabis in the United States is inconsistent and contradictory, to put it mildly. While marijuana remains classified as a Schedule I substance under the federal Controlled Substance Act—in the same category as heroin and morphine, with accompanying criminal penalties up to and including life imprisonment for its production, distribution, and possession—as of the end of 2020, eleven states and the District of Columbia had legalized recreational marijuana use and thirty-six states and the District of Columbia had decriminalized the use of marijuana for medical purposes. Despite the trend toward legalization, however, marijuana is a stigmatized product. Stigmatized products are those toward which a significant portion of consumers hold negative attitudes and beliefs, whereas the concept of legitimacy is defined as a generalized perception or assumption that the actions of an entity are desirable, proper, or appropriate within some socially constructed system of norms, values, beliefs, and definitions. This article addresses how current legislation and regulations influence consumer perceptions of a product category, and how conflicting regulations (or the lack of regulations) influence the adoption of a stigmatized product such as cannabis (i.e., marijuana and cannabidiol products)</i></p>","PeriodicalId":54186,"journal":{"name":"American Business Law Journal","volume":"57 4","pages":"735-772"},"PeriodicalIF":1.2,"publicationDate":"2021-04-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1111/ablj.12171","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42689800","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"社会学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Aubree L. Walton, Kaimee Kellis, William E. Tankersley, Rikinkumar S. Patel
{"title":"Cultivating Evidence-Based Pathways for Cannabis Product Development: Implications for Consumer Protection†","authors":"Aubree L. Walton, Kaimee Kellis, William E. Tankersley, Rikinkumar S. Patel","doi":"10.1111/ablj.12173","DOIUrl":"10.1111/ablj.12173","url":null,"abstract":"<p>Disparities between federal and state cannabis regulation, coupled with protracted federal enforcement, have facilitated the proliferation of a multi–billion dollar cannabis industry that generally evades compliance with federal consumer protection laws. The Federal Food, Drug and Cosmetic Act (FDCA) established regulatory pathways for the lawful development of products such as food, drugs, and dietary supplements. The FDCA uses a science-based approach to protect consumers from harmful products, but early inconsistencies between state and federal cannabis regulation prevented and/or discouraged the cannabis industry from complying with FDCA requirements. Cannabis products are promoted as safe and attributed with providing effective therapeutic treatment for numerous medical conditions, yet the claims often lack the rigorous evidence-based support typically expected by regulators and the medical community. The Food and Drug Administration (FDA) has announced its expectation that cannabidiol (CBD) products comply with the FDCA and follow a science-based approach to product development. The FDA is addressing violations involving unsubstantiated CBD health claims and is working to clarify the future regulatory pathway for CBD products. Meanwhile, the state-approved cannabis market continues to operate, selling numerous products that have circumvented the FDCA consumer protections. This article examines the need for strengthening consumer protections in the cannabis market. We use evidence-based medicine as a model to address the importance of science-based product development and to contextualize a science-based comparison of regulatory pathways for cannabis drugs, food, and dietary supplements.</p>","PeriodicalId":54186,"journal":{"name":"American Business Law Journal","volume":"57 4","pages":"773-825"},"PeriodicalIF":1.2,"publicationDate":"2021-04-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1111/ablj.12173","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46039969","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"社会学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Taxing Cannabis on the Reservation","authors":"Mark J. Cowan","doi":"10.1111/ablj.12174","DOIUrl":"https://doi.org/10.1111/ablj.12174","url":null,"abstract":"<p>American Indian tribes that enter the cannabis industry confront a multisovereign tax system that lacks certainty and horizontal equity. The complex interaction of state legalization and taxation of cannabis, federal tax law, the status of tribes as both governments and business enterprises, and the legal and tax landscape in Indian country can give tribes tax advantages and disadvantages compared to off-reservation cannabis dispensaries. This article analyzes these tax issues, examines them in the context of prior challenges posed by Indian gaming, and suggests reforms that address the tax inequities that can result from cannabis sales on Indian reservations.</p>","PeriodicalId":54186,"journal":{"name":"American Business Law Journal","volume":"57 4","pages":"867-911"},"PeriodicalIF":1.2,"publicationDate":"2021-04-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1111/ablj.12174","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"71983722","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"社会学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Medical Marijuana Registries: A Painful Choice?","authors":"Kimberly A. Houser, Janine Hiller","doi":"10.1111/ablj.12170","DOIUrl":"10.1111/ablj.12170","url":null,"abstract":"<p>Though the medical use of marijuana is legal in thirty-three states, it remains illegal under the federal Controlled Substances Act. Any marijuana use can subject individuals to severe criminal and civil penalties under federal law. States that condition patient access and treatment on registration in a state database impose real risks on their citizens. Although many scholars have written about the tension between federal and state treatment of marijuana, this is the first article to examine marijuana patient registry privacy and fundamental rights issues. This article first reviews the relationship between marijuana use and patient treatment, with a focus on health-care and privacy rights under state and federal law. The article then explains how marijuana registries compare to broader patient registries, such as contagious disease and other medical condition patient registries, and the unique issues presented by marijuana patient registries. It then discusses the elevated risk to constitutional, privacy, and fundamental rights that may result if states do not carefully construct marijuana registries. The article concludes by proposing principles for how both states and dispensaries should approach marijuana registries in order to provide health benefits and avoid harm to patients.</p>","PeriodicalId":54186,"journal":{"name":"American Business Law Journal","volume":"57 4","pages":"827-865"},"PeriodicalIF":1.2,"publicationDate":"2021-04-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1111/ablj.12170","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48863690","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"社会学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Caremark Compliance for the Next Twenty-Five Years","authors":"Robert C. Bird","doi":"10.1111/ablj.12179","DOIUrl":"10.1111/ablj.12179","url":null,"abstract":"<p><i>One of the most influential cases in corporate governance is</i> In re Caremark International Inc. Derivative Litigation <i>(</i>Caremark<i>). In 1996,</i> Caremark <i>imposed a novel duty on boards of directors to make a good faith attempt to implement and exercise oversight over obligations leading to liability. Breach of this minimal duty has been difficult for plaintiffs to plead and prove, and the case law is littered with dismissed</i> Caremark <i>lawsuits. As</i> Caremark<i>'s reign reaches a quarter-century, however, its duties are primed to evolve. Two cases,</i> Marchand v. Barnhill <i>and</i> In re Clovis Oncology, Inc. Derivative Litigation<i>, took the rare step of allowing</i> Caremark <i>claims to survive motions to dismiss. These cases signal a new understanding of</i> Caremark <i>obligating boards not merely to attempt oversight, but to ensure proactively that such oversight is effective. This subtle but significant change in board duties is one to which the academic literature should respond. This article first reviews the</i> Marchand <i>and</i> Clovis <i>cases and argues that these cases hold significance for the future of</i> Caremark <i>claims. Second, this article studies client advisories from law firms and other sources that evaluate the</i> Clovis <i>and</i> Marchand <i>cases. It finds that while these advisories offer useful tactical responses, they lack strategic advice that would benefit boards over the long term. Filling the gap, this article presents long-term strategic advice for boards not only to meet</i> Caremark <i>duties but also to thrive as exemplars of good governance and ethical leadership for the next twenty-five years.</i></p>","PeriodicalId":54186,"journal":{"name":"American Business Law Journal","volume":"58 1","pages":"63-119"},"PeriodicalIF":1.2,"publicationDate":"2021-04-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1111/ablj.12179","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44859003","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"社会学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Free Agency for the Front Office: How Data Analytics and Noncompete Agreements Threaten to Disrupt Competitive Balance in U.S. Professional Sports Leagues","authors":"Nathaniel Grow","doi":"10.1111/ablj.12180","DOIUrl":"10.1111/ablj.12180","url":null,"abstract":"<p>U.S. professional sports teams are increasingly relying on sophisticated forms of data analysis to identify potential areas of competitive advantage over their league rivals. Indeed, emerging evidence suggests that the most sophisticated teams in this area are using the insights that they derive from data analytics to establish durable and significant gains over their competition on the playing field. At the same time, sports franchises frequently utilize noncompete agreements to protect the resulting, proprietary information that their data analysis yields. Unfortunately, recent academic research suggests that this reliance on covenants not to compete can decrease the rate of knowledge diffusion within an industry, making it more difficult for teams to catch up to early adopters of data analytics. Thus, teams’ growing reliance on data analytics—and their use of noncompete agreements to protect their resulting findings—could have significant, but heretofore unrecognized, ramifications for league efforts to maintain an adequate level of competitive balance amongst their franchises. This article explores this state of affairs, as well as the implications it presents for the governance of U.S. professional sports leagues.</p>","PeriodicalId":54186,"journal":{"name":"American Business Law Journal","volume":"58 1","pages":"121-162"},"PeriodicalIF":1.2,"publicationDate":"2021-04-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1111/ablj.12180","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45595569","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"社会学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Entrepreneurial Regulatory Legal Strategy: The Case of Cannabis","authors":"Colleen M. Baker","doi":"10.1111/ablj.12172","DOIUrl":"10.1111/ablj.12172","url":null,"abstract":"<p>This article develops the concepts of regulatory legal strategy, a resource-based view of government agencies, and regulatory entrepreneurship. These ideas are explored through a case study of the limited (if any) access that legal cannabis-related businesses have to the banking system due to the clash between federal law and laws in those states that have legalized some uses of cannabis. This article argues that regulators’ entrepreneurial regulatory legal strategies can have a material impact on regulated entities and give them a competitive advantage. To demonstrate, this article claims that regulators’ adoption of permissive regulatory legal strategies has facilitated access of some cannabis-related businesses to the banking system. Conversely, if regulators adopted obstructive regulatory strategies, this would act as a constraint on such access in the future, even if Congress resolves the federalism issue largely responsible for the current limitations these businesses face.</p>","PeriodicalId":54186,"journal":{"name":"American Business Law Journal","volume":"57 4","pages":"913-954"},"PeriodicalIF":1.2,"publicationDate":"2021-04-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1111/ablj.12172","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42791695","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"社会学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Peter Bowal, Kathryn Kisska-Schulze, Richard Haigh, Adrienne Ng
{"title":"Regulating Cannabis: A Comparative Exploration of Canadian Legalization","authors":"Peter Bowal, Kathryn Kisska-Schulze, Richard Haigh, Adrienne Ng","doi":"10.1111/ablj.12175","DOIUrl":"10.1111/ablj.12175","url":null,"abstract":"<p>This article explores cannabis regulation in Canada and the United States and examines how recent legalization efforts have manifested differently in each country. Although some of these differences are explained by uncompromising constitutional structures, this comparative exercise examines each system's political choices. While emphasis is placed on the Canadian experience, this article seeks to inform and enhance policy and regulation in both countries in addition to highlighting inherent ethical issues.</p>","PeriodicalId":54186,"journal":{"name":"American Business Law Journal","volume":"57 4","pages":"677-733"},"PeriodicalIF":1.2,"publicationDate":"2021-04-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1111/ablj.12175","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44338575","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"社会学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Taxing Cannabis on the Reservation","authors":"M. Cowan","doi":"10.2139/ssrn.3733936","DOIUrl":"https://doi.org/10.2139/ssrn.3733936","url":null,"abstract":"American Indian tribes that enter the cannabis industry confront a multi-sovereign tax system that lacks certainty and horizontal equity. The complex interaction of state legalization and taxation of cannabis, federal tax law, the status of tribes as both governments and business enterprises, and the legal and tax landscape in Indian country can give tribes tax advantages and disadvantages compared to off-reservation cannabis dispensaries. This article analyzes these tax issues, examines them in the context of prior challenges posed by Indian gaming, and suggests reforms that address the tax inequities that can result from cannabis sales on Indian reservations.","PeriodicalId":54186,"journal":{"name":"American Business Law Journal","volume":"1 1","pages":""},"PeriodicalIF":1.2,"publicationDate":"2020-11-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42289102","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"社会学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}