There’s a great article in the L.A. Times about a diamond deal gone bad. What makes this so fascinating is that the diamond industry is one of the few which relies primarily on trust and where “word is bond.” Normally such scandals are rare since as the article notes, even the mere filing of lawsuits is enough to tarnish one’s reputation. I’m curious if the increase of globalization will turn the diamond trade into just another business.
For those with Lexis-Nexis or good Library access, I highly recommend the authoritative academic study by U of C law professor (and really cool person) Lisa Bernstein, “Opting Out of the Legal System: Extralegal Contractual Relations in the Diamond Industry,” 21 Journal of Legal Studies 115 (1992).