Academic journal article Washington and Lee Law Review

The Professional Prospectus: A Call for Effective Professional Disclosure

Academic journal article Washington and Lee Law Review

The Professional Prospectus: A Call for Effective Professional Disclosure

Article excerpt

Table of Contents

I. Introduction........................1459

II. The Failed Markets for Professional Services.........................1466

A. Private and Public Concerns.........................1470

1. Private Concerns.........................1470

a. Mortality Risk.........................1470

b. Diminished Health.........................1471

c. Lost Profits & Increased Expenses.........................1473

2. Public Concerns.........................1474

a. Substandard Professionals Generate Negative Externalities.........................1474

b. Suppressed Demand for Professional Services.........................1475

c. Overspending on Other Categories of Professional Services.........................1478

(1) Healthcare.........................1478

(2) Financial Intermediation.........................1480

B. Current Tools Function Poorly.........................1483

1. Reputation's Current Limited Force.........................1484

a. Discovery Problems.........................1485

b. Broadcast Problems.........................1486

2. The Flawed Occupational Licensing Model.........................1489

a. Cartelization Risks.........................1490

b. Limited Review of Ongoing Competence.........................1491

III. A Professional Prospectus.........................1492

A. Key Considerations for a Professional Prospectus Regime..........................1493

1. Moving from Posting to Pushing..........................1493

a. Today's Posting..........................1493

b. The Power of Pushing..........................1494

2. Short, Standardized, & Clear..........................1496

a. Short..........................1496

b. Standardized..........................1497

c. Clear..........................1498

3. Benchmark Information.........................1498

4. Information with Predictive Value..........................1499

5. Insurance Information..........................1501

B. An Immigration Use Case..........................1501

1. The State of Representation..........................1502

a. Insufficient Representation Rates..........................1502

b. Low Lawyer Quality..........................1503

2. The Lemon Problem Limits Market Solutions...........................1505

3. A Professional Prospectus Intervention...........................1507

IV. Implications of a Professional Prospectus Regime...........................1509

A. Potential Objections...........................1509

1. Disclosure Costs...........................1509

2. Pandering...........................1510

3. Strategic Client Selection...........................1511

4. Statistical Barriers to Entry...........................1512

B. Additional Implications...........................1513

1. Mitigating Implicit Bias...........................1513

2. Facilitating Information Intermediaries...........................1513

3. Best Practices...........................1514

V. Conclusion...........................1514

I. Introduction

THERE ARE IDIOTS. Look around.

-Lawrence H. Summers, Former Secretary of the Treasury1

No doubt the same may be said of all professions. They are all conspiracies against the laity.

-George Bernard Shaw, Author2

Like many others before him, Celso Lima Mejia learned the hard way that a professional license does not guarantee basic competence.3 After Guatemalan rebels kidnapped Mr. Mejia during the country's civil war, he fled to the United States with his family.4 Mejia paid attorney Miguel Gadda thousands of dollars for assistance with an asylum claim.5 Although he had hoped for a green card, Mr. Mejia received a deportation order instead.6

Consumers often lack useful information about professionals before they hire them. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.