Rules and Institutions in Developing a Law Market: Views from the United States and Europe

Abstract

Developments in European choice of law seem to offer the United States a tantalizing opportunity for escape from the chaos of state-by-state choice-of-law rules. Specifically, the Rome Regulations provide the sort of uniform choice-of-law rules that have eluded the United States. Also, decisions of the European Court of Justice that permit firms to adopt homecountry rules in some situationss eem to facilitatejuds&ctionalc hoice by pivate parties. This top-down ordering ofchoice-of-lawniles contrasts with the seemingly chaotic and decentalized system that pievails in the United States. However, decentralized Amencan-style federalism might have something to offer Europe because choice of law in the United States has sparked a type of law market that helps constamin inefficient state regulatory efforts. Viewed from the perspective of whilch system best fosters a market for law, both the United States and Europe have advantages that each could learn from the other.