Insurance Policies: The Grandparents of Contractual Black Holes

In their recent article, The Black Hole Problem in Commercial Boilerplate, Professors Stephen Choi, Mitu Gulati, and Robert Scott identify a phenomenon found in standardized contracts they describe as “contractual black holes.” The concept of black holes comes from theoretical physics. Under the original hypothesis, the gravitational pull of a black hole is so strong that once light or information is pulled past an event horizon into a black hole, it cannot escape. In recent years, the theory has been reformulated and now the hypothesis is that some information can escape, but it is so degraded that it is virtually useless. In their article, Choi, Gulati, and Scott apply the black hole concept to certain standardized contractual boilerplate provisions. Although the focus of their article is on the contractual black hole nature of pari passu clauses that are used in sovereign debt contracts, Choi, Gulati, and Scott note that “[s]tandard insurance contracts appear to be another area with the potential for terms that have lost meaning.” They are correct that insurance policies are an area in which contractual black holes would appear quite likely to develop. In this essay, to test the hypothesis that insurance policies potentially are, or contain, contractual black holes, four policy provisions found in commercial insurance policies are considered: 1) “Sue and Labor” Clauses, 2) “Ensuing Loss” Clauses, 3) “Non-Cumulation” Clauses, and 4) the “Sudden and Accidental” Pollution Exclusion. An examination of these provisions demonstrates that some policy provisions have become contractual black holes, some provisions are only apparent contractual black holes, and other provisions on their way to becoming contractual black holes were saved before the original meaning of such provisions crossed the event horizon

FARM PRICE ESTIMATION WHEN THERE IS BARGAINING: THE CASE OF PROCESSED FRUIT AND VEGETABLES

Raw product prices for many processed fruits and vegetables are determined in part as an outcome of negotiations between processors and farmer bargaining associations. In such cases, unique market equilibrium solutions may not exist. This study develops a framework for price prediction under bargaining and applies it to the California cling peach industry. The price prediction equation turns out to involve the same variables as would a model specified for perfect competition. Hence a mistaken assumption about the structure of competition may still provide a model that predicts well, provided the structure remains constant.Demand and Price Analysis, Marketing,

Buoyant Venus station mission feasibility study for 1972 and 1973 launch opportunities. Volume 2 - Trajectory analysis for 1972 and 1973 missions Final report

Trajectory analysis for 1972 and 1973 buoyant Venus station missio

A study of the durability of beryllium rocket engines

For abstract, see N74-35204

AN E-V ANALYSIS OF PRICING ALTERNATIVES FOR LONG-TERM MARKETING CONTRACTS

Demand and Price Analysis, Marketing,

DEMAND AND PRICE-MARKUP FUNCTIONS FOR CANNED CLING PEACHES AND FRUIT COCKTAIL

This study formulates and estimates a six-equation model for canned cling peaches and fruit cocktail in which processors are viewed as price setters, with qualities not sold at the set price carried over to the next year. The system consists of two price-markup equations, two quantity-dependent demand equations and two inventory change identities. The three-stage least squares estimation results tend to support the behavioral hypotheses.Demand and Price Analysis,

The life project

This conference paper is available to download from the publisher’s website at the link below.The Life Project explores issues of psychological projection into technology by diving into the convoluted relationship between practical purpose and emotional attachment, through both the creative act of designing and making robot entities with artificial emotions, and the social act of engaging with them. This process explores the concept of body representation through a multiidentity in virtual and physical blended space. In a lesser sense, it also suggests a future world of collaboration between physical and virtual forms, enabled by new forms of representation in blended worlds