Full-text resources of CEJSH and other databases are now available in the new Library of Science.
Visit https://bibliotekanauki.pl

PL EN


2016 | 9(14) | 15-42

Article title

Contracts and Automation: Exploring the Normativity of Automation in the Context of U.S. Contract Law and E.U. Consumer Protection Directives

Content

Title variants

Languages of publication

EN

Abstracts

EN
Given a choice between two systems of contract rules, a court or legislature may have a normative obligation to adopt the rule that is more susceptible to coding and automation. This paper explores the ramifications of that normative proposition through the lens of multiple contract doctrines that traditionally involve “messy” judgments or multiple interacting judgments regarding which human beings are – arguably – capable of making finely nuanced analyses. Using the common law doctrine of unconscionability and Polish Civil Code Article 385 on unfair terms in consumer contracts, this paper explores the differences between contract rules that require human analysis versus those that can be applied with strong reliability by automated processes. Finally, the paper analyzes some of the potential pitfalls of this normative proposition in light of technological, economic, and moral/ethical concerns.
FR
En donnant le choix entre deux systèmes de règles contractuelles, un tribunal ou une législature peut avoir l'obligation normative d'adopter une règle qui est plus susceptible de codification et d’automatisation. Cet article analyse les conséquences de cette proposition normative à travers des différentes doctrines contractuelles qui impliquent traditionnellement des jugements “désordonnés” ou des jugements multiples dépendant de la profondeur de l’analyse. En faisant la référence à la doctrine de “common law” de l’inconscience et à l’article 385 de Code Civil polonais concernant les clauses contractuelles abusives dans les contrats conclus avec les consommateurs, cet article explore les différences entre les règles contractuelles qui exigent une analyse humaine et celles qui peuvent être appliquées avec une grande fiabilité par des processus automatisés. Enfin, le document analyse certaines difficultés potentiels de cette proposition normative à la lumière des préoccupations technologiques, économiques et morales / éthiques.

Year

Volume

Pages

15-42

Physical description

Dates

published
2016-12-31
printed
2016-12-31

Contributors

  • Professor of Law, Michigan State University College of Law, Bradford Stone Faculty Scholar

References

  • Barnes, W.R. (2007). Toward a fairer model of consumer assent to standard form contracts: In defense of Restatement subsection 211(3). Washington Law Review, 82, 227-274.
  • Barnhizer, D.D. (2006). Propertization metaphors for bargaining power and control of the self in the information age. Cleveland State Law Review, 54(69), 69-113.
  • Barnhizer, D.D. (2007). Bargaining power in the shadow of the law: Commentary to professors Wright and Engen, professor Birke, and Josh Bowers. Marquette Law Review, 91, 123-143.
  • Barnhizer, D.D. (2010). Context as power: defining the field of battle for advantage in contractual relations. Wake Forest Law Review, 45, 607-640.
  • Barnhizer, D.D. (2014). Escaping toxic contracts: How we have lost the war on assent in wrap contracts. Southwestern Law Review, 44, 215-229.
  • Barnhizer, D.D. (2016). Reassessing assent-based critiques of adhesion contracts. In L.A. DiMatteo and M. Hogg (eds). Comparative contract law: British and American perspectives. Oxford: Oxford University Press, 170-188.
  • Ben-Shahar, O. and Schneider, C. (2014). More than you wanted to know: The failure of mandated disclosure. Princeton, NJ: Princeton University Press.
  • Bernstein, L. (1996). Merchant Law in a Merchant Court: Rethinking the Code's Search for Immanent Business Norms. University of Pennsylvania Law Review, 144(5), 1765-1821. doi:10.2307/3312639.
  • Bernstein, L. (2001, June). Private commercial law in the cotton industry: Creating cooperation through rules, norms, and institutions. Michigan Law Review, 99, 1274-1788. doi: 10.2307/1290478.
  • Bishop, C.G. and Barnhizer, D.D. (2015). Contracts: Cases and theory of contractual obligation (2nd ed.). St. Paul, Minn.: West Academic Publishing.
  • Block, S. (2016, February). Which tax software is best for you? Retrieved from: http://www.kiplinger.com/article/taxes/T056-C005-S003-which-tax-software-is-best-for-you.html (08.03.2016).
  • Brown, E.L. (2000). The uncertainty of U.C.C. section 2-302: Why unconscionability has become a relic. Commercial Law Journal, 105, 287-307.
  • Bulinski, M.A. and Prescott, J.J. (2016). Online Case Resolution Systems: Enhancing Access, Fairness, Accuracy, and Efficiency. Michigan Journal of Race & Law, 21, 205-249.
  • Christman, E. (2014, January 3). Digital Music Sales Decrease For First Time in 2013. Retrieved from: http://www.billboard.com/biz/articles/news/digital-and-mobile/5855162/digital-music-sales-decrease-for-first-time-in-2013 (11.08.2016).
  • Copeland, M. (2016). The Difference Between AI, Machine Learning, and Deep Learning? | NVIDIA Blog. Retrieved from: https://blogs.nvidia.com/blog/2016/07/29/whats-difference-artificial-intelligence-machine-learning-deep-learning-ai/ (08.08.2016).
  • Davenport, W.B. (1967). Unconscionability and the Uniform Commercial Code. University of Miami Law Review, 22, 121-150.
  • Domański, G., Dobkowska, K., Zbiegień-Turzańska, A. and Stępniak, L. (2015). The civil code: Bilingual edition (E. Kucharska & M.L. Mauviel, Trans.). Warszawa: Wydawnictwo C.H. Beck.
  • Fairfield, J. (2009). The cost of consent: Optimal standardization in the law of contract. Emory Law Journal, 58, 1401-1458.
  • Farivar, C. (2014, June 25). KlearGear must pay $306,750 to couple that left negative review. Retrieved from: http://arstechnica.com/tech-policy/2014/06/kleargear-must-pay-306750-to-couple-that-left-negative-review/ (13.02.2016).
  • Fleming, A. (2014). The rise and fall of unconscionability as the “law of the poor”. Georgetown Law Journal, 102, 1383-1441
  • Friedman, L.M. (1965). Contract law in America; a social and economic case study. Madison: University of Wisconsin Press.
  • Frischmann, B.M. and Selinger, E. (2016, September 2). Engineering humans with contracts. Cardozo Legal Studies Research Paper No. 493. Available at SSRN: http://ssrn.com/abstract=2834011 or http://dx.doi.org/10.2139/ssrn.2834011.
  • Gordon, J.D. (1991). How Not to Succeed in Law School. The Yale Law Journal, 100(6), 1679. doi:10.2307/796783.
  • Grochowski, M. (n.d.). Polish Consumer Law. Polish Private Law. Retrieved from: http://polishprivatelaw.pl/polish-consumer-law/ (03.10.2016).
  • Horwitz, M.J. (1977). The Transformation of American Law, 1780-1860. Cambridge, MA: Harvard University Press.
  • Jabłonowska, A. (2016, June 7). Extended legal effect of court rulings in unfair contract term cases – AG's opinion and the recent reform of Polish law. Retrieved from: http://recent-ecl.blogspot.com/2016/06/extended-legal-effect-of-judgments-in.html (18.10.2016).
  • Kim, N.S. (2013). Wrap contracts: Foundations and ramifications. New York City, NY: Oxford University Press.
  • Klein, S. (2013, June 27). Dehydration Myths: 7 Things You Should Know About Staying Hydrated, Huffington Post. Retrieved from: http://www.huffingtonpost.com/2013/06/27/dehydration-myths_n_3498380.html (21.11.2016).
  • Lonegrass, M. (2012). Finding room for fairness in formalism—the sliding scale approach to unconscionability. Loyola University Chicago Law Journal, 44, 1-64.
  • Mnookin, R.H. and Kornhauser, L. (1979). Bargaining in the shadow of the law: The case of divorce. The Yale Law Journal, 88(5), 950-997. doi:10.2307/795824.
  • Pound, R. (1910). Law in books and law in action. American Law Review, 44, 12-36.
  • Prince, H.G. (1995). Unconscionability in California: A need for restraint and consistency. Hastings Law Journal, 46, 459-554.
  • Radin, M.J. (2000). Humans, computers, and binding commitment. Indiana Law Journal, 75, 1125-1162.
  • Schmitz, A. (2006). Embracing unconscionability’s safety net function. Alabama Law Review, 58, 73-118.
  • Simon, H.A. (1960a). The new science of management decision. In H.A. Simon, The shape of automation for men and management. New York City, NY: Harper & Row, 53-111.
  • Simon, H.A. (1960b). Will the corporation be managed by machines?. In H.A. Simon, The shape of automation for men and management. New York City, NY: Harper & Row, 26-52.
  • Slawson, W.D. (1971). Standard form contracts and democratic control of lawmaking power. Harvard Law Review, 84(3), 529-565. doi:10.2307/1339552
  • Smith, S.A. (2004). Contract theory. Oxford: Oxford University Press.
  • Snyder, F.G. and Mirabito, A.M. (2014). The death of contracts. Duquesne Law Review, 52, 345-413.
  • Steiner, I. (n.d.). EBay's New Dispute Resolution Process Takes Effect. Retrieved from: http://www.ecommercebytes.com/cab/abn/y13/m04/i10/s04 (27.02.2016).
  • Susskind, R.E. (2010). The end of lawyers?: Rethinking the nature of legal services (rev. ed.). Oxford: Oxford University Press.
  • Swanson, C.B. (2001). Unconscionable quandary: U.C.C. article 2 and the unconscionability doctrine. New Mexico Law Review, 31, 359-399.
  • Teeven, K.M. (1992). Decline of freedom of contract since the emergence of the modern business corporation. St. Louis University Law Journal, 37, 117-168.
  • Vance, A. (2015, December 16). George Hotz Is Taking on Tesla by Himself. Retrieved from: http://www.bloomberg.com/features/2015-george-hotz-self-driving-car/ (15.03.2016).

Document Type

Publication order reference

Identifiers

YADDA identifier

bwmeta1.element.desklight-75640175-cc10-4b73-96ef-83e675978eb8
JavaScript is turned off in your web browser. Turn it on to take full advantage of this site, then refresh the page.