Title
The 'Principles' Paradox
Document Type
Article
Comments
The most up-to-date version of this piece can be found in the Duke Law Scholarship
Abstract
Although principles-based regulation is thought to more closely achieve normative goals than rules, the extent to which that occurs can depend on the enforcement regime. A person who is subject to unpredictable liability is likely to hew to the most conservative interpretation of the principle, especially where that person would be a potential deep pocket in litigation. This creates a paradox: Unless protected by a regime enabling one in good faith to exercise judgment without fear of liability, such a person will effectively act as if subject to a rule and, even worse, an unintended rule.
Date of Authorship for this Version
March 2008
Recommended Citation
Schwarcz, Steven L., "The 'Principles' Paradox" (2008). Duke Law School Faculty Scholarship Series. Paper 122.
http://lsr.nellco.org/duke_fs/122