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University of Michigan Law School

University of Michigan Journal of Law Reform

Journal

1975

Investment

Articles 1 - 2 of 2

Full-Text Articles in Law

Toward A Uniform Approach To Multilevel Distributorships, Donald Daniels Jan 1975

Toward A Uniform Approach To Multilevel Distributorships, Donald Daniels

University of Michigan Journal of Law Reform

The phenomenal growth and eventual collapse of the enterprises of Glenn Wesley Turner and William Penn Patrick during the 1960's should have surprised no one. They were only a recent example of an old and recurrent merchandising scheme, a variant of the chain letter device. Such operations, commonly called pyramid sales schemes, can temporarily succeed where a credulous public, willing to believe that it can get rich quickly for a small monetary investment and little or no expenditure of effort, exists in a legal system lacking a coordinated program for the prevention of such machinations. Pyramid sales schemes have been …


Prudence In Trust Investment, Thomas D. Johnston Jan 1975

Prudence In Trust Investment, Thomas D. Johnston

University of Michigan Journal of Law Reform

Part I of this article presents a brief history of the prudent man standard and explores the meaning of "prudence." Part II discusses the shift in legal theory to include equities as prudent investments. Part III articulates the weaknesses in the method currently used by courts to assess investment prudence in view of the exigencies confronting today's trustee-investor. Finally, part IV shows that the same factors which justified the creation of the Prudent Man Rule and its expansion to include equities will support its modification to encompass modern investment theories and techniques.