Freedom of association and law and economics

[Lynne Henderson]

As a follow-up to Paul's observation, one need look no farther than the
Denny's restaurant case(s) to find continuing discrimination on the part of
restaurants/food service providers.  The practice of department
stores--following Black customers, refusing their checks--the documented
discrimination in the loan industry, all that shows that there is still
perceived  profit in discriminating.
Lynne

-----Original Message-----
From: Discussion list for con law professors
[mailto:CONLAWPROF at listserv.ucla.edu]On Behalf Of Paul Finkelman
Sent: Friday, October 27, 2000 4:21 PM
To: CONLAWPROF at listserv.ucla.edu
Subject: Re: Freedom of association and law and economics


I would suggest that anyone who believes this nonsense just look at the long
history of race discrimination in Texas and the persistent support for it
across the state among whites of all classes and in all sorts of business.
Many of these business leaders served in the legislature and as govenor and
worked for such laws.  Furthermore, there is good evidence that in the
absence
of laws, capitalists still discriminate.  For example, Major League Baseball
owners colluded for more than 50 years to prevent blacks from playing and
then,
when one owner did break these rules, many other owners did everything
possible
to prevent it from spreading; now I admit this was about "hiring" rather
than
about selling tickets, but the principle is the same.   Alternatively, if
the
good capitalists Mr. Cross quotes believed that they would lose white
customers
by serving blacks, they would not serve blacks.  I would also point to the
many
restaurants that would not serve blacks (or women) even when it was legal to
do
so.  Obviously there is an economic value in discriminating.

--
Paul Finkelman
Chapman Distinguished Professor
University of Tulsa College of Law
3120 East Fourth Place
Tulsa, OK  74104

918-631-3706
Fax 918-631-2194

E-mail:  paul-finkelman at utulsa.edu



Frank Cross wrote:

> Lots of good conservatives claim that there was no real freedom of
> association issue here.  They argue that good, capitalist businesses would
> never choose to discriminate based on race or any other irrelevant
> characteristic, because it would be inefficient and cost them profits.
> They further argue that the segregation was ascribable to government
> interference.  I myself have some doubt about the accuracy of these
claims,
> but they certainly are relevant to the freedom of association issue.
>
> Frank Cross
> Herbert D. Kelleher Centennial Professor of Business Law
> CBA 5.202
> University of Texas at Austin
> Austin, TX 78712