Document Type

Article

Publication Title

Cardozo Law Review

Abstract

The United Kingdom’s (U.K.) June 2016 decision to exercise its option to leave the European Union (E.U. or Union) represents one of the great surprises in the complex history of supranational organizations. Most of the discussion in the wake of that decision has tended to stress the particulars of the referendum with regard to the short-term advantages and disadvantages of a decision that has clearly divided class and region within the U.K. Older individuals, and those who did not live and work in the Greater London area, tended to vote in favor of exit. Those who were younger and in professions like finance and banking tended to vote in the opposite direction. It is easy to find general theories of individual or group self-interest that explain both of these voting patterns, even without assuming corrupt motives on the part of those for whom exit was the preferred option. British people who work daily in European markets have far greater incentives to remain in the E.U. than people whose loyalties, though often in support of free trade, have a more diversified portfolio of interests. The Brexit decision, however, is important in yet another way. It offers a case study on one of the hardest questions of political and legal theory, which is the role of exit rights in the organization of the state. This problem is one that arises, not only in connection with a decision by one nation to exit a larger confederation, but also in a wide variety of other contexts. In particular, three prototypical exit cases are of relevance here. The first of these involves individual exit options from private contractual arrangements, such as the repudiation of private common ownership, the partition of jointly held land, or the dissolution or division of private firms. The second involves the decisions of individuals to exercise their exit rights from states or nations, usually through emigration. The third deals with complex decisions by government entities to engage in either separation or, in some cases, annexation. Understanding these various patterns helps explain the importance of exit rights generally. It also lends a cautious vote of approval for the Brexit decision, notwithstanding the major transactional challenges that will follow, industry by industry, in making good on the British referendum.

First Page

825

Volume

39

Publication Date

2018

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