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Impleader, which was known asVOUCHING-INat common law, is governed by procedural rules on both the state and federal levels.“Vouching in” has its origins in the English common-law practi

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KENNETH STARR, theINDEPENDENT COUNSELwho was charged with investigating possible criminal activity by President Clinton and First Lady

HILLARY RODHAM CLINTON in an Arkansas real estate deal (“Whitewater”), worked with Jones’s attorneys to develop evidence that Clinton had lied about the affair with Lewinsky Starr threatened toSUBPOENAClinton to testify before

a GRAND JURY about possible PERJURY and ob-struction of justice, but Clinton voluntarily agreed to appear before the grand jury On August 17, 1998, Clinton changed his story

when Starr questioned him before the grand jury Clinton admitted that he had been alone with Lewinsky and that they had engaged in

“inappropriate intimate contact.” Much of Clinton’s grand jury testimony contradicted the sworn testimony that he had given at the Jones deposition

Starr prepared a 453-page report and sub-mitted it to the House of Representatives on September 11, 1998 He accused Clinton of betraying his constitutional duty by engaging in

a pattern of “abundant and calculating” lies

A Challenge to Impeachment

I

B

n 1989, federal judge Alcee Hastings was

re-moved from the bench by a Senate vote,

becoming the first judge in U.S history to be

impeached after being acquitted in a criminal trial

Hastings vigorously proclaimed his innocence,

challenged the proceedings in court, and alleged

that racism drove the proceedings

An appointee of President Jimmy Carter,

Hast-ings joined the U.S District Court for the Southern

District of Florida as its first African American judge

in 1979 In 1981, federal prosecutors indicted him on

conspiracy to accept a bribe from a Federal Bureau

of Investigation agent posing as a defendant in a

case before him They charged Attorney William A

Borders, president of the National Bar Association,

with offering the agent a lenient sentence from

Hastings in exchange for $150,000 Borders was

convicted in 1982 Hastings was acquitted in

February 1983

Hastings’s troubles soon deepened In April

1983, the U.S Court of Appeals for the Eleventh

Circuit set in motion a three-year investigation into

charges that Hastings had manufactured evidence

for his defense The probe concluded that he was

guilty, and in March 1987, the Judicial Conference

of the United States recommended impeachment

The House of Representatives agreed On August 3,

1988, the full House voted 413–3 to send the case to

the Senate with seventeen articles of impeachment,

including false testimony, fabrication of false

records, and improper disclosure of confidential

law enforcement information

Hastings brought suit, seeking a preliminary injunction from the U.S District Court for the District

of Columbia (Hastings v United States Senate, 716

F Supp 38 [1989]) In his three-part complaint, Hastings claimed that (1) the impeachment hearing was procedurally flawed because his trial would be conducted by committee and not by the full body of the Senate; (2) the impeachment hearings violated his Fifth Amendment double jeopardy rights against

a second prosecution for the same crime; and (3) he was being denied effective counsel and was entitled to attorneys’ fees

The suit failed U.S district judge Gerhard Gesell held that (1) rule XI of the governing Rules of Procedure and Practice in the Senate When Sitting

on Impeachment authorizes a committee format but does not prevent the full participation of the Senate;

(2) double jeopardy principles did not apply in this case because impeachment is not a criminal proceeding and because Hastings faced separate impeachment charges; and (3) no statute provides for attorneys’ fees

In August 1989, the Senate panel heard twenty-four days of testimony On October 20, it convicted Hastings on eight of the impeachment articles and removed him from office Hastings left the bench continuing to profess his innocence, attacking the Senate’s handling of evidence, and maintaining that

he was the victim of racism

CROSS REFERENCE Double Jeopardy.

368 IMPEACHMENT

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regarding his relationship with Lewinsky The

report, which contained explicit language, was

released on the INTERNET a few days later The

Republican-controlled House Judiciary

Com-mittee began deliberating the possibility of

impeaching Clinton On Dec 11, 1998, after

seven days of hearings, the Judiciary Committee

voted to recommend the impeachment of

President Clinton On a 21-to-16, straight,

party-line vote, the committee approved an

article of impeachment claiming that Clinton

had committed perjury before the grand jury

The committee passed two more articles,

alleging perjury in the Paula Jones suit and

obstruction of justice On December 12, it

passed a fourth article, alleging that Clinton had

abused his power On December 19, the full

House of Representatives impeached Clinton,

charging him with “high crimes and

misde-meanors” for lying under oath and obstructing

justice by trying to cover up his affair with

Lewinsky The House voted largely along party

lines to approve two of the four proposed

articles of impeachment

The Senate began the impeachment trial on

January 14, 1999 Thirteen House members,

acting as prosecutors, spent three days making

opening statements, laying out the case for the

Senate to convict President Clinton and to

remove him from office The team of lawyers

representing President Clinton spent the

fol-lowing three days presenting their lines of

defense After the Senate questioned both sides

for several days, it adjourned the trial until

House prosecutors could be take depositions

from Lewinsky and others who had been

involved in the alleged perjury and obstruction

of justice The Senate, on a 70-30 vote, decided

not to call Lewinsky as a witness but permitted

videotape excerpts of her testimony to be played

at the trial Both sides played excerpts that it

believed to be favorable to its position, which

were shown to the U.S public through

the televised deliberations Closing arguments

then were presented, and the Senate moved

into closed-door deliberations on February

9, 1999

On February 19, 1999, the Senate acquitted

President Clinton of the two articles of

im-peachment Rejecting the perjury charge, ten

Republicans and all 45 Democrats voted not

guilty On the obstruction-of-justice charge,

the Senate split 50-50 After the VERDICT was

announced, Clinton stated that he was “pro-foundly sorry” for the burden he had imposed

on the Congress and the citizens of the United States

Impeachment remains the ultimate check

on the abuse of power By providing this power

to Congress, the Framers drew on a long tradition of democratic skepticism about lea-ders These provisions ensure that leaders will serve the people only so long as they respect the law and their offices In this sense, the power of impeachment also stands ready to thwart tyranny Calls are occasionally made for reform that would streamline the impeachment process, but its rare invocation and tradition of service make such reform unlikely

FURTHER READINGS Aguilar, Narciso M 2001 Fundamentals on Impeachment.

Quezon City, Philippines: Central Lawbook.

Baron, Alan I 1995 “The Curious Case of Alcee Hastings.”

Nova Law Review (spring).

Shea, Pegi Deitz 2000 The Impeachment Process Philadel-phia: Chelsea House.

Smith, Alexa J 1995 “Federal Judicial Impeachment:

Defining Process Due ” Hastings Law Journal 46 (January).

Strasser, Fred 1989 “Proud, Unrepentant, Judge Hastings Exits.” The National Law Journal (November 6).

Villadolid, Oscar S., and Alice Colet Villadolid 2001 The Impeachment of a President Manila.

CROSS REFERENCES High Crimes and Misdemeanors; Chase, Samuel, “The Samuel Chase Impeachment Trial ” (Sidebar).

IMPEDIMENT

A disability or obstruction that prevents an individual from entering into a contract

Infancy, for example, is an impediment in making certain contracts Impediments to

MARRIAGEinclude such factors as CONSANGUINITY

between the parties or an earlier marriage that is still valid

IMPERSONATION The crime of pretending to be another individual

in order to deceive others and gain some advantage

The crime of false impersonation is defined

by federal statutes and by state statutes that differ from jurisdiction to jurisdiction In some states, pretending to be someone who does not actually exist can constitute false impersonation

For example, suppose Bill attempts to evade

IMPERSONATION 369

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prosecution for a crime by giving the arresting officer a fictitious name and address In Color-ado, where“[a] person who knowingly assumes

a false or fictitious identity and, under that identity, does any other act intending unlawfully

to gain a benefit for himself is guilty of criminal impersonation,” Bill could be charged with a crime (Colo Rev Stat Ann § 18-5-113(1) [West 1996]) In this situation, the benefit Bill hopes to realize is avoiding prosecution, so that element of the offense has been satisfied To be charged, theDEFENDANTdoes not need to seek a monetary benefit from the impersonation

In New York, giving only a fictitious name does not constitute false impersonation Under New York law, criminal impersonation is committed when an individual“[i]mpersonates another and does an act in such assumed character with intent to obtain a benefit or to injure or defraud another” (N.Y Penal Law § 190.25 [McKinney 1996]) In other words, it is illegal to impersonate a real person, but not a fictitious one Thus, if Carol forges Ann’s name

on checks made out to Ann so that Carol can cash the checks, Carol could be guilty

of false impersonation—but only if Ann is a real person Such laws are designed to pro-tect innocent people from the losses they may incur owing to the wrongful acts of others and to restore any loss of dignity and re-putation they may have suffered as a result of impersonation

Most state laws also provide that the impersonation of a public official is a criminal act In Texas, impersonating “a public servant with intent to induce another to submit to his pretended official authority or to rely on his pretended official acts” is a crime (Tex Penal Code Ann § 37.11[West 1996]) Depending on the jurisdiction, the public servant being impersonated does not always have to actually exist For example, suppose Carl pulls over a driver, shows her a fake police badge, and reprimands her for speeding but tells her that he will not arrest her if she pays him $50 Carl’s actions constitute the crime of false impersona-tion, in addition to any other crimes, including extortion, that may apply to the situation

Thousands of criminal reports are filed every year by individuals victimized in various ways

by persons impersonating police officers

Under federal law, pretending to be “an officer or employee acting under the authority

of the United States” in order to demand or obtain “any money, paper, document, or thing

of value” can result in a fine as well

as imprisonment for up to three years (18 U.S.C.A § 912) Like state false imper-sonation statutes, the federal law also seeks to protect interests such as the dignity and prestige of individuals, especially those who hold federal office Federal statutes also prohibit other types of impersonation, including pre-tending to be a U.S citizen; prepre-tending to be

a U.S officer or employee attempting to arrest or search a person or search a building; pretending to be a creditor of the United States or a foreign official; and pretend-ing to be an agent or member of 4-H or of the Red Cross

IMPERTINENCE Irrelevancy; the flaw of bearing no reasonable relationship to the issues or proceeding at hand

An impertinent question is one that is immaterial or has no logical relation to the issue or controversy before the court

IMPLEADER

A procedural device used in a civil action whereby

a defendant brings into the lawsuit a third party who is not already a party to the action but may ultimately be liable for the plaintiff’s claim against the defendant

Impleader is most commonly used where the third party, often an insurance company, has a duty to indemnify, or contribute to the payment of, the plaintiff’s damages An insur-ance policy usually provides that if the insured

is sued, the insurance company will defend him or her in court and pay any damages owed

if he or she is found liable in the action For example, suppose a person slips and falls on

a homeowner’s property, suffers an injury, and sues the homeowner If the homeowner has a homeowner’s policy, he may implead his insurance company by filing a third-party complaint for approval by the court If the court permits the complaint, the insurer is brought into the action The homeowner is now both the DEFENDANT in the action and a third-party PLAINTIFF If he is found liable and ordered to pay damages, the insurance company will be expected to pay all or part of those damages

370 IMPERTINENCE

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Impleader, which was known asVOUCHING-IN

at common law, is governed by procedural rules

on both the state and federal levels.“Vouching

in” has its origins in the English common-law

practice of“vouching to warranty.” A defendant,

sued by a plaintiff for the recovery of a certain

piece of property, could“vouch in” another party

who may have given a warranty of title when the

property was sold to the defendant Similar types

of third-party actions began to appear in this

country and eventually, in the interests of

uniformity, a federal rule of CIVIL PROCEDURE

providing for impleader was adopted Rule 14 of

the Federal Rules of Civil Procedure provides that

“a defending party, as a third-party plaintiff, may

cause a summons and complaint to be served

upon a person not a party to the action who is or

may be liable to the third-party plaintiff for all or

part of the plaintiff’s claim against the third-party

plaintiff.”

State rules of civil procedure regulate the use

of impleader in actions commenced in state

courts In Connecticut, for instance, “a

defen-dant in anyCIVIL ACTIONmay move the court for

permission to serve a writ, summons and

complaint upon a person not a party to the

action who is or may be liable to him for all or

part of the plaintiff’s claim against him” (Conn

R Super Ct 117) Both federal and state court

impleader rules are designed to promote judicial

economy by disposing of two or more trials in

one action, thus eliminating the need for the

defendant to sue the third party at a later time

A third party who is brought into an action

through impleader is entitled to defend herself

or himself against the claims of both the

plaintiff and the defendant, raising whatever

defenses may be applicable An insurance

company may allege that the policy issued to

the defendant does not cover the acts that gave

rise to the lawsuit and thus led the defendant to

implead the company For example, suppose

Ann has been sued for allegedly assaulting Susan

and has filed an impleader to have her insurance

company defend her and pay any damages

against her The insurance company may refuse

to defend her on the ground that the policy does

not cover intentional acts, such as assaulting

another person If the court agrees, the

insur-ance company will not have to defend Susan or

pay any damages that Ann is awarded by the

court or a jury

The court has a great deal of discretion in

deciding whether a defendant may implead a

third party The court considers a number of factors, including whether joining the third party will unduly complicate the action, cause delay in deciding the main action (the original suit brought by the plaintiff against the defen-dant), adversely affect the plaintiff, or confuse the jury If any of these factors is present, the court may refuse to permit the impleader The court’s decision to grant or deny the impleader will be overturned by an appellate court only if

it appears that the lower court abused its discretion

FURTHER READINGS

“Pleadings and Motions, Rule 14.” Federal Rules of Civil Procedure Ithaca, NY: Cornell Univ Law School.

Wicks, James M., and Marie Zweig 1999 “Impleader Practice in New York: Does It Really Discourage Piecemeal Litigation? ” New York State Bar Journal 71 (February): 44.

Yeazell, Stephen C 1998 Federal Rules of Civil Procedure

2009 Statutory Supplement Frederick, MD: Aspen.

IMPLIED Inferred from circumstances; known indirectly

In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated When something is implied, its meaning is derived from the words or actions of the individuals involved For example, when one individual gives another a gift, the recipient’s acceptance is implied if he or she performs acts indicating ownership, such as using the gifts

IMPLIED CONSENT Consent that is inferred from signs, actions, or facts, or by inaction or silence

Implied consent differs from express con-sent, which is communicated by the spoken or written word

Implied consent is a broadly based legal concept Whether it is as valid as express consent depends on the situation and the applicable law For example, the owner of a car generally is liable for an accident caused by someone who drove that car with his or her consent In many states, that consent can be express or implied, and implied consent may arise from seemingly innocuous actions For instance, a habit of leaving the keys in the car’s ignition may under law imply that the owner

IMPLIED CONSENT 371

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consents to anyone else’s—even a car thief’s—

driving the car

Corporations that conduct business in a foreign state—that is, any state other than the state of incorporation—impliedly consent to be bound by the laws of the foreign state and to

be subject to the foreign state’s jurisdiction The rationale supporting this application of the implied consent rule is basic: a corporation that reaps the benefits of conducting business in

a state also should be subject to the laws and the courts of that state The fact that the corpora-tion has business in the foreign state is all that is needed for a finding of implied consent

Implied consent as the result of inaction is most commonly found in litigation procedures

For instance, a party to a lawsuit may have the legal right to object to a court hearing that is scheduled to occur before the party has obtained certain crucial documents But if the party appears at the hearing and allows it to proceed without objecting, the party has waived the right

to later object or appeal By failing to take action

to cancel or reschedule the hearing, the party is said to have implied its consent to the hearing

Perhaps the best known—and most often litigated—application of implied consent involves laws prohibiting driving while intoxi-cated Most states have legislation that subjects motorists suspected of driving while under the influence of alcohol or illicit drugs to blood, breath, or urine tests These chemical tests can confirm the existence and the level of drugs or alcohol in a driver’s body, and can be used as evidence against the driver Pursuant to these

state statutes, known as implied consent laws, anyone who drives on public roads or highways has, by that action, impliedly consented to such tests Once stopped or arrested for suspicion of driving while impaired, a person must submit to

a test or face revocation or suspension of his or her driver’s license

Implied consent statutes have been attacked for a variety of constitutional reasons, usually unsuccessfully Courts have held that the statutes

do not violate a driver’s FOURTH AMENDMENT

protection from unreasonableSEARCH AND SEIZURE,

or FIFTH AMENDMENTright against SELF- INCRIMINA-TION The statutes usually are upheld on due process grounds, although courts have struck down statutes that permit the revocation of a license without a hearing Arguments that implied consent laws are an invasion of privacy

or an undue burden on interstate commerce have also been rejected by the courts

Courts generally look to one of two theories supporting the validity of implied consent laws According to the first theory, driving on public roads and highways is a privilege, not a right Only those who adhere to state laws, including laws prohibiting driving while intoxicated, are entitled to the driving privilege Under the second theory, courts consider implied consent laws to be a reasonable regulation of driving pursuant to the state’sPOLICE POWER, so long as the laws do not violate due process Courts have weighed the interests of society against the interests of individuals, and have determined that drunk or drug-impaired drivers are enough

of a danger to society that a slight infringement

on the liberty of individuals is justifiable The liberty of individuals is protected some-what by the requirement that before a law officer can request a blood, urine, or breath test, the officer must have reasonable grounds to believe that the driver is intoxicated What constitutes reasonable grounds is determined on a case-by-case basis If a driver loses her or his license after refusing to comply with a chemical test and a court later finds that reasonable grounds for the test did not exist, the court can invalidate the revocation or suspension of the license

Courts generally hold that a revocation or suspension of a license caused by a driver’s refusal to test for drugs or alcohol is separate and distinct from a prosecution for driving while intoxicated Therefore, in most states, it makes no difference whether a driver pleads

The most common

application of implied

consent is to laws

prohibiting drunk

driving By using a

public road, motorists

imply consent to

submit to tests

measuring the

existence of alcohol in

their blood.

JUSTIN SULLIVAN/GETTY

IMAGES

372 IMPLIED CONSENT

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guilty to, is convicted of, or is acquitted of the

crime: refusing to take a test for chemical

impairment may result in a revoked or

sus-pended license, and this punishment must be

paid despite a subsequent acquittal of driving

while intoxicated or in addition to any

punish-ment that comes as a result of a conviction

Many states require that a law officer warn a

driver of the consequences of refusing to take a

chemical test, and if that warning is not given,

the license cannot be revoked or suspended

Some states offer drivers a limited right to

consult an attorney before deciding whether to

take a sobriety test This right is not absolute,

since a significant delay would render ineffective

a blood, urine, or alcohol test Several states

offer drivers the opportunity for a second

opinion—the right to have an additional test

performed by the driver’s choice of physicians

States differ in their approach to implied

consent laws, but their goal is the same: keeping

dangerously impaired drivers off the roads

Courts and legislatures are reluctant to frustrate

this goal

FURTHER READINGS

Faden, Ruth R., and Tom L Beauchamp 1986 A History

and Theory of Informed Consent New York: Oxford

Univ Press.

Fuller, M Elizabeth 1985 “Implied Consent Statutes: What

Is Refusal? ” American Journal of Trial Advocacy 9

(spring).

Implied Consent.org Web site 2009 Available online at

http://www.impliedconsent.org/ (accessed September 4,

2009).

CROSS REFERENCE

Automobiles.

IMPLIED WARRANTY

A promise, arising by operation of law, that

something that is sold will be merchantable and fit

for the purpose for which it is sold

Every time goods are bought and sold, a

sales contract is created: the buyer agrees to pay,

and the seller agrees to accept, a certain price in

exchange for a certain item or number of items

Sales contracts are frequently oral, unwritten

agreements The purchase of items such as a

candy bar hardly seems worth the trouble of

drafting an agreement spelling out the buyer’s

expectation that the candy bar will be fresh and

edible Implied warranties protect the buyer

whether or not a written sales contract exists

Implied Warranty of Merchantability

Implied warranties come in two general types:

merchantability and fitness An implied war-ranty of merchantability is an unwritten and unspoken guarantee to the buyer that goods purchased conform to ordinary standards of care and that they are of the same average grade, quality, and value as similar goods sold under similar circumstances In other words, mer-chantable goods are goods fit for the ordinary purposes for which they are to be used The

UNIFORM COMMERCIAL CODE (UCC), adopted by most states, provides that courts may imply a warranty of merchantability when (1) the seller

is the merchant of such goods, and (2) the buyer uses the goods for the ordinary purposes for which such goods are sold (§ 2-314) Thus, a buyer can sue a seller for breaching the implied warranty by selling goods unfit for their ordinary purpose

There is rarely any question as to whether the seller is the merchant of the goods sold

Nevertheless, in Huprich v Bitto, 667 So.2d 685 (Ala 1995), a farmer who sold defective horse feed was found not to be a merchant of horse feed The court stated that the farmer did not hold himself out as having knowledge or skill peculiar to the sale of corn as horse feed, and therefore was not a merchant of horse feed for purposes of determining a breach of implied warranty of merchantability

The question of whether goods are fit for their ordinary purpose is much more frequently litigated Thomas Coffer sued the manufacturer

of a jar of mixed nuts after he bit down on an unshelled filbert, believing it to have been shelled, and damaged a tooth Coffer argued

in part that the presence of the unshelled nut among shelled nuts was a breach of the implied warranty of merchantability Unquestionably, Coffer was using the nuts for their ordinary purpose when he ate them, and unquestionably,

he suffered a dental injury when he bit the filbert’s hard shell But the North Carolina appellate court held that the jar of mixed nuts was nonetheless fit for the ordinary purpose for which jars of mixed nuts are used (Coffer v

Standard Brands, 30 N.C App 134, 226 S.E.2d

534 [1976]) The court consulted the state agriculture board’s regulations and noted that the peanut industry allows a small amount of unshelled nuts to be included with shelled nuts without rendering the shelled nuts inedible or

IMPLIED WARRANTY 373

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adulterated The court also noted that shells are

a natural incident to nuts

The policy behind the implied warranty of merchantability is basic: sellers are generally better suited than buyers to determine whether

a product will perform properly Holding the seller liable for a product that is not fit for its ordinary purpose shifts the costs of nonperfor-mance from the buyer to the seller This motivates the seller to ensure the product’s proper performance before placing it on the market The seller is better able to absorb the costs of a product’s nonperformance, usually by spreading the risk to consumers in the form of increased prices

The policy behind limiting the implied warranty of merchantability to the goods’ ordi-nary use is also straightforward: a seller may not have sufficient expertise or control over a product

to ensure that it will perform properly when used for nonstandard purposes

Implied Warranty of Fitness

When a buyer wishes to use goods for a particular, nonordinary purpose, the UCC provides a distinct implied warranty of fitness (§ 2-315) Unlike the implied warranty of merchantability, the implied warranty of fitness does not contain a requirement that the seller be

a merchant with respect to the goods sold It merely requires that the seller possess knowl-edge and expertise on which the buyer may rely

For example, one court found that horse buyers who indicated to the sellers their intention to use the horse for breeding were using the horse for a particular, nonordinary purpose (Whitehouse v Lange, 128 Idaho 129,

910 P.2d 801 [1996]) The buyers soon discov-ered that the horse they purchased was incapa-ble of reproducing Because the court found this use of the horse to be nonordinary, the buyers were entitled to an implied warranty of fitness

Before a court will imply a warranty of fitness, three requirements must be met: (1) the seller must have reason to know of the buyer’s particular purpose for the goods; (2) the seller must have reason to know of the buyer’s reliance on the seller’s skill and knowledge in furnishing the appropriate goods; and (3) the buyer must, in fact, rely on the seller’s skill and knowledge Even when these requirements are met, courts will not imply a warranty of fitness under certain circumstances A buyer

who specifies a particular brand of goods is not entitled to an implied warranty of fitness Also, a buyer who has greater expertise than the seller regarding the goods generally is precluded from asserting an implied warranty of fitness, as is a buyer who provides the seller with specifications, such as a blueprint or design plan, detailing the types of material to be used in the goods

FURTHER READINGS Biddle, Arthur 2009 A Treatise on the Law of Warranties in the Sale of Chattels Charleston, SC: BiblioBazaar Davidson, Charles Darwin 2006 “Often Overlooked Implied Warranties Apply to a Host of Sales ” Arkansas Business (June 27).

Gonzales, Vincent M 1987 “The Buyer’s Specifications Exception to the Implied Warranty of Fitness for a Particular Purpose: Design or Performance? ” California Law Review 61 (November).

IMPORT QUOTAS Import quotas are a form of protectionism An import quota fixes the quantity of a particular good that foreign producers may bring into a country over a specific period, usually a year The U.S government imposes quotas to protect domestic industries from foreign competition Import quotas are usually justified as a means

of protecting workers who otherwise might

be laid off They also can raise prices for the consumer by reducing the amount of cheaper, foreign-made goods imported and thus reduc-ing competition for domestic industries of the same goods

TheGENERAL AGREEMENT ON TARIFFS AND TRADE

(GATT) (61 Stat A3, T.I.A.S No 1700, 55 U.N T.S 187), which was opened for signatures

on October 30, 1947, is the principal interna-tional multilateral agreement regulating world trade GATT members were required to sign the Protocol of Provisions Application of the General Agreement on Tariffs and Trades (61 Stat A2051, T.I.A.S No 1700, 55 U.N.T.S 308) The Protocol of Provisions set forth the rules governing GATT and it also governs import quotas This agreement became effective January 1, 1948, and the United States is still bound by it GATT has been renegotiated seven times since its inception; the most recent version became effective July 1, 1995, with 123 signatories

Import quotas once played a much greater role in global trade, but the 1995 renegotiation

of GATT has made it increasingly difficult for a country to introduce them Nations can no

374 IMPORT QUOTAS

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longer impose temporary quotas to offset surges

in imports from foreign markets Furthermore,

an import quota that is introduced to protect a

domestic industry from foreign imports is

limited to at least the average import of the

same goods over the last three years In

addition, the 1995 GATT agreement identifies

the country of an import’s origin in order to

prevent countries from exporting goods to

another nation through a third nation that does

not have the same import quotas GATT also

requires that all import quota trade barriers be

converted into tariff equivalents Therefore,

although a nation cannot seek to deter trade

by imposing arbitrary import quotas, it may

increase the tariffs associated with a particular

import

In the United States, the decade from

the mid-1980s to the mid-1990s saw import

quotas placed on textiles, agricultural products,

automobiles, sugar, beef, bananas, and even

underwear—among other things In a single

session of Congress in 1985, more than 300

protectionist bills were introduced as U.S

industries began voicing concern over foreign

competition

Many U.S companies headquartered in the

United States rely on manufacturing facilities

outside of the country to produce their goods

Because of import quotas, some of these

companies cannot get their own products back

into the United States While such companies

lobby Congress to change what they consider to

be an unfair practice, their opposition argues

that this is the price to be paid for giving away

U.S jobs to foreign countries

Nearly every country restricts imports of

foreign goods For example, in 1996—even after

the new version of GATT went into effect—

Vietnam restricted the amount of cement,

fertilizer, and fuel and the number of

auto-mobiles and motorcycles it would import The

import quotas of foreign countries can adversely

affect U.S industries that try to sell their goods

abroad The U.S economy has suffered because

of foreign import quotas on canned fruit,

cigarettes, leather, insurance, and computers

In a market that has become overcrowded with

U.S entertainment, the European Communities

have chosen to enforce import quotas on

U.S.-made films and television in an effort to

encourage Europe’s own industries to become

more competitive

FURTHER READINGS Benenson, Bob 1994 “Free Trade Carries the Day As GATT Easily Passes ” Congressional Quarterly Weekly Report 52 (November 26).

Prepared testimony of Allan I Mendelowitz 1995 Fed-eral News Service, congressional hearings testimony (June 14).

“Provisions: GATT Implementing Bill.” 1994 Congressional Quarterly Weekly Report 52 (November 26).

Reinke, John J 1985 “An Analysis of the Conflicts between Congressional Import Quotas and the General Agree-ment on Tariffs and Trade.” Fordham International Law Journal 9.

IMPOSSIBILITY

A legal excuse or defense to an action for the breach of a contract; less frequently, a defense to a criminal charge of an attempted crime, such as attempted robbery or murder

Historically, a person who entered a con-tract was bound to perform according to his or her promised duties, regardless of whether

it became impossible to do so Thus, early U.S courts did not recognize the defense of impossibility of performance Courts noted that

if the parties to a contract had desired to take into account any events that may develop after they reached an agreement, then they should have accounted for such contingencies in the contract

As contract law developed over the twenti-eth century—and in response to increasing commercial activities—courts began to recog-nize impossibility as a valid defense to an action for breach of a contract This defense did not normally apply if one party found it unexpect-edly difficult or expensive to perform according

to the contract; rather, it applied only when the basis or subject matter of the contract was destroyed or no longer existed In addition, the defense of impossibility became available only if objective impossibility existed Objective im-possibility occurred when the contractual obli-gation could not actually be performed Objec-tive impossibility is often referred to by the statement “The thing cannot be done.” For example, if a musician promised to play a concert at a specific concert hall but the concert hall subsequently burned down, it would be impossible to perform according to the con-tractual agreement and the musician would be excused from performing at that particular venue Subjective impossibility exists when only one of the parties to a contract subjectively believes that she or he cannot complete the

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required performance For example, if a musician believed that he had not practiced sufficiently to perform a successful concert, this belief would not excuse the musician from performing the concert The statement“I cannot do it”

frequent-ly refers to the state of mind present in a case involving subjective impossibility

Modern U.S law uses the term impracticability synonymously with the term impossibility, primar-ily because some things may not be absolutely impossible to perform but are nevertheless impracticable to complete Thus, the general rule

is that a thing may be impossible to perform when

it would not be practicable to perform A contractual obligation is impracticable “when it can only be done at an excessive and unreasonable cost” (Transatlantic Financing Corp v United States, 363 F.2d 312 [D.C Cir 1966])

When a party raises the defense of imprac-ticability, courts generally determine three things: first, whether something unexpected occurred after the parties entered the contract;

second, whether the parties had assumed that this thing would not occur; and third, that the unexpected occurrence made performance of the contract impracticable Some widely recog-nized occurrences that would normally provide

a defense of impracticability are the death or illness of one of the necessary parties, the unforeseeable destruction of the subject matter

of the contract (perhaps by an“act of God”), or

a supervening illegality

Impossibility has been used as a defense to charges of attempted crimes Historically, courts recognized that a party could not be convicted of criminal attempt if the actual crime was legally impossible to accomplish For example, if a person was accused of attempting to receive stolen property but the property was not actually stolen, the defense of legal impossibility could arise Legal impossibility is distinguished from factual impossibility, where facts unknown to the person attempting to commit a crime render the crime factually impossible to complete For example, if a pickpocket attempts to steal a wallet but no wallet is present, factual impossi-bility may exist Courts generally have recognized legal impossibility as a defense to a criminal attempt, but not factual impossibility They reasoned that because a person attempting to commit a crime had formed the required intent

to commit the crime, it was irrelevant that the crime was factually impossible to complete

Impossibility as a defense to a criminal attempt has largely been rejected by modern U.S statutes and courts The Model Penal Code—which many states have adopted since its introduction in 1962—expressly rejects im-possibility as a defense to the charge of criminal attempt (§ 5.01[1995])

FURTHER READINGS Bello, Christopher 1985 “Construction and Application of State Statute Governing Impossibility of Consumma-tion as Defense to ProsecuConsumma-tion for Attempt to Commit Crime ” American Law Review 41.

Berliant, Marcus, and Paul Rothstein 2003 “Possibility, Impossibility, and History In the Origins of the Marriage Tax ” National Tax Journal 56 (June) Available online

at http://www.entrepreneur.com/tradejournals/article/ 106701001.html; website home page: http://www entrepreneur.com (accessed August 1, 2009).

“Modern Status of the Rules Regarding Impossibility of Performance as Defense in Action for Breach of Contract ” 1962 American Law Reports 84.

IMPOSTOR RULE Under Uniform Commercial Code, Article 3, Sect 404(a), a rule stating that if an impostor endorses

a negotiable instrument and receives payment in good faith, the drawer of the instrument is responsible for the loss An example would be if

an individual impersonates a person for whom a check has been cut or misrepresents himself as that person’s agent If the impostor receives the check, endorses it, and cashes it at the drawer’s bank, the drawer is responsible for the loss, because the bank accepted the endorsement in good faith The bank may be responsible for a percentage of the loss if it failed to exercise “ordinary care”; for example, if the bank did not check the impostor’s identifica-tion The imposter rule is based on the assumption that between the bank and the drawer, the drawer

is in a better position to prevent the loss Also spelled imposter rule

IMPOSTS Taxes or duties; taxes levied by the government on imported goods

Although impost is a generic term, which can

be used in reference to all taxes, it is most fre-quently used interchangeably withCUSTOMS DUTIES

IMPOUNDMENT

An action taken by the president in which he or she proposes not to spend all or part of a sum of money appropriated by Congress

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The current rules and procedures for

impoundment were created by the

Congressio-nal Budget and Impoundment Control Act of

1974 (2 U.S.C.A § 601 et seq.), which was

passed to reform the congressional budget

process and to resolve conflicts between

Con-gress and PresidentRICHARD M.NIXONconcerning

the power of the executive branch to impound

funds appropriated by Congress Past

presi-dents, beginning with THOMAS JEFFERSON, had

impounded funds at various times for various

reasons, without instigating any significant

conflict between the executive and the legislative

branches At times, such as when the original

purpose for the money no longer existed or

when money could be saved through more

efficient operations, Congress simply acquiesced

to the president’s wishes At other times,

Congress or the designated recipient of the

impounded funds challenged the president’s

action, and the parties negotiated until a

political settlement was reached

Changes during the Nixon

Administration

The history of accepting or resolving

impound-ments broke down during the Nixon

adminis-tration for several reasons First, President Nixon

impounded much greater sums than had

previ-ous presidents, proposing to hold back between

17 and 20 percent of controllable expenditures

between 1969 and 1972 Second, Nixon used

impoundments to try to fight policy initiatives

that he disagreed with, attempting to terminate

entire programs by impounding their

appropria-tions Third, Nixon claimed that as president, he

had the constitutional right to impound funds

appropriated by Congress, thus threatening

Congress’s greatest political strength: its power

over the purse Nixon claimed, “The

Constitu-tional right of the President of the United States

to impound funds, and that is not to spend

money, when the spending of money would

mean either increasing prices or increasing taxes

for all the people—that right is absolutely clear.”

In the face of Nixon’s claim to

impound-ment authority and his refusal to release

appropriated funds, Congress in 1974 passed

the Congressional Budget and Impoundment

Control Act, which reformed the congressional

budget process and established rules and

procedures for presidential impoundment In

general, the provisions of the act were designed

to curtail the power of the president in the

budget process, which had been steadily grow-ing throughout the twentieth century

The Impoundment Control Act divides impoundments into two categories: deferrals and rescissions In a deferral, the president asks Congress to delay the release of appropriated funds; in a rescission, the president asks Congress to cancel the appropriation of funds altogether Congress and the president must follow specific rules and procedures for each type of impoundment

Deferrals

To propose a deferral, the president must send Congress a request identifying the amount of money to be deferred, the program that will be affected, the reasons for the deferral, the

estimat-ed fiscal and program effects of the deferral, and the length of time for which the funds are to

be deferred Funds cannot be deferred beyond the end of the fiscal year, or for so long that the affected agency could no longer spend the funds prudently

In the original Impoundment Control Act, the president was allowed to defer funds for any reason, including opposition to a specific pro-gram or for general policy goals, such as curtailing federal spending Congress retained the right to review deferrals, and a deferral could

be rejected if either the House or the Senate voted

to disapprove it In 1986 several members of Congress and a number of cities successfully challenged the constitutionality of these deferral procedures in City of New Haven v United States,

809 F.2d 900 (D.C Cir 1987) New Haven was based on a 1981 case, INS v Chadha, 454 U.S

812, 102 S Ct 87, 70 L Ed 2d 80, in which the Supreme Court ruled that one-house vetoes of proposed presidential actions are

unconstitution-al The Chadha ruling invalidated Congress’s right to review and disapprove deferrals In response, Congress took away most of the president’s deferral power through provisions in the Balanced Budget and Emergency Deficit Control Reaffirmation Act of 1987 (2 U.S.C.A

§ 901 et seq.) (otherwise known as Gramm-Rudman-Hollings II) These provisions allow presidential impoundment for only three reasons:

to provide for special contingencies, to achieve savings through more efficient operations, and when such deferrals are specifically provided for

by law The president can no longer defer funds for policy reasons

IMPOUNDMENT 377

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