Price, Path & Pride: Third-Party Closing Opinion Practice among U.S. Lawyers (A Preliminary Investigation)
Jonathan C. Lipson
Temple University - James E. Beasley School of Law
Berkley Business Law Journal, Vol. 3, p. 59, 2006
Temple University Legal Studies Research Paper No. 2006-13
This article provides a qualitative empirical analysis of third-party closing opinion practice. This practice has recently generated some controversy because, among other reasons, many of the transactions in issue in Enron were supported by closing opinions. Interviews with lawyers around the nation suggest that the traditional academic view of opinion practice - that it promotes economic efficiency - is helpful but incomplete. Many features of closing opinion practice persist despite demonstrable inefficiencies. Moreover, when the practice improves, it is often non-market forces that create the change. Based on these interviews, the article offers some initial thoughts on why the practice exists, and certain of the functions that it may perform.
Number of Pages in PDF File: 71
Keywords: Closing opinions, corporate governance, legal ethics, corporations, due authority, enforceability, Enron, economic analysis
JEL Classification: K22
Date posted: September 29, 2005
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