Law Commons^™

Why Intra-Brand Dealer Competition Is Irrelevant To The Price Effects Of Tesla's Vertical Integration, Daniel A. Crane

Articles

"In recent years, Tesla Motors (recently renamed Tesla) has been engaged in a state-by-state ground way for the right to distribute it’s all-electric vehicles directly to consumers. The car dealers' lobby, with the political backing of General Motors, has fiercely battled back, relying on decades-old state dealer protection laws to argue that Tesla is legally bound to distribute through franchised dealers. Through a combination of favorable state legislative and judicial decisions, Tesla has won the right to distribute directly in many states, but remains categorically barred from direct distribution in important states like Michigan and Texas--and hence all direct distribution …

Tesla And The Car Dealers' Lobby, Daniel A. Crane

Articles

Tesla Motors, the offspring of entrepreneur Elon Musk (who brought us Pay-Pal and SpaceX), is the most exciting automotive development in many decades and a marquee story of American technological dynamism and innovation. The company’s luxury electric cars have caused a sensation in the auto industry, including a review by Consumer Reports calling Tesla’s Model S the best car it ever tested. Despite the acclaim, Tesla faces enormous challenges Despite the acclaim, Tesla faces enormous challenges in penetrating an automotive market that has been dominated for a century by internal combustion engines. Not only must it build cars that customers …

Rationing The Infinite, Leonard M. Niehoff

Michigan Law Review

This Review raises a number of objections to Baker's arguments and proposals. Furthermore, this Review raises the fundamental question of whether Baker's central operating assumption-that media is a scarce resource that should be fairly distributed-remains timely in light of the far-reaching and fast-paced changes wrought by the internet. Nevertheless, this Review also recognizes that, as with Baker's prior works, Media Concentration and Democracy makes a serious contribution to the discussion of the political, social, and economic dynamics that challenge the existence of a strong and independent media. Media Concentration and Democracy does a better job of raising questions than of …

Property Rights And Liability Rules: The Ex Ante View Of The Cathedral, Lucian Arye Bebchuk

Michigan Law Review

This Article aims to contribute to the study of how the law should allocate and protect entitlements in the presence of externalities. In their classic article published thirty years ago, Calabresi and Melamed studied such questions and offered what they labeled "one view of the Cathedral." I seek to add to the inquiry started by Calabresi and Melamed by offering an ex ante perspective and analyzing how allocations of entitlements affect parties' ex ante actions and investments. Suppose that an upstream Factory would benefit from an activity that would pollute a river and harm an activity conducted by a downstream …

Uncoupling The Law Of Takings, Michael A. Heller, James E. Krier

Law Quadrangle (formerly Law Quad Notes)

The following article is based on "Deterrence and Distribution in the Law of Takings," 112 Harvard Law Review 997-1025 (March 1999), © 1999 by the Harvard Law Review Association, and appears here by permission. A complete version, with citations, is available from the authors or the editor of Law Quadrangle Notes.

The law of takings couples together matters that should be treated independently. Whatever the boundaries of the the Takings Clause, we think there is much to be gained by analyzing takings in terms of the clause's underlying purposes, and by understanding that efficiency and justice are best served by …

Liquor Price Affirmation Statutes And The Dormant Commerce Clause, Ward A. Greenberg

Michigan Law Review

Part I of this Note examines the current state of the law in the liquor affirmation area. Part II argues that the twenty-first amendment may not be invoked to justify the extraterritorial impact of these statutes. The amendment does not preempt the commerce clause in the liquor area. While it gives the states free rein over liquor internally, it provides no basis for any extraterritorial projection of liquor price regulation. Part III considers the commerce clause analysis of Brown-Forman and argues that any interstate effects of these statutes will cause them to violate the commerce clause. This section argues that …

Allocation Of Scarce Goods Under Section 2-615 Of The Uniform Commercial Code: A Comparison Of Some Rival Models, James J. White

Articles

Section 2-615 of the Uniform Commercial Code authorizes a contract seller to allocate goods in short supply when full performance has become commercially impracticable. Most of the cases under and commentary on that section have focused on the issue of commercial impracticability. The allocation aspects of the section have attracted much more modest attention in the cases and in the scholarly journals. The purpose of this article is to examine critically the allocation rule set out in section 2-615(b). That subsection authorizes a seller, upon a finding of commercial impracticability, to allocate "in any manner which is fair and reasonable." …

Mutual Funds-Trusts And Trustees-Capital Gains Distributions From Mutual Funds: Income Or Principal?, Michigan Law Review

Michigan Law Review

The growing prevalence of mutual fund shares in the assets of small and medium-sized estates has made the problem of allocating capital gains distributions between income and principal a matter of great concern to the trustees of such estates. A "capital gains" distribution represents a gain resulting from the profitable sale of securities held by the mutual fund. The uncertain state of the law regarding capital gains distributions from mutual funds presents a serious dilemma to the trustee: if he distributes the capital gains to the life beneficiary, the remainderman may claim that such distributions represent a partial liquidation of …

The Federal Securities Act And The Locked-In Stockholder, Neil Flanagin

Michigan Law Review

The Securities Act of 1933 is generally identified with Securities and Exchange Commission registration and the attendant disclosure for primary and secondary public offerings of securities. Because of the uncertain scope of the registration requirements, however, it has the practical effect of seriously restricting certain security holders in selling or dealing in their securities. Security holders so restricted may be underwriters themselves or persons considered to be underwriters for the particular transaction. The difficulties arise in determining which security holders are included within this class and which transactions by those parties are affected. It is to these problems that the …

Rule 10b-6: The Special Study's Rediscovered Rule, Jack M. Whitney Ii

Michigan Law Review

An attempt either to assign responsibility for the breakdown in communication or to secure a quantitative measure of the consequences of that breakdown would be bootless. I attempt here only to pinpoint some of the areas of seeming ambiguity within the rule, and to consider them in light of a variety of situations wherein, it is hoped, the problems will become clearer and more precise, thus facilitating the consideration of whether solutions are needed and what form they should take.

Taxation-Federal Income Taxation-Examination Of Certain Problems Under Section 335, Roger B. Harris S.Ed.

Michigan Law Review

Stock and securities of controlled corporations may be distributed to shareholders, tax free, in cases of corporate separations which qualify under section 355 of the Internal Revenue Code of 1954. A corporate separation is effected by the transfer of part of a corporation's assets to a subsidiary, the stock of which is distributed to the parent's stockholders. Such distributions are generally classified into three categories: spin-off, split-off, and split-up. A spin-off occurs when corporation A forms corporation B to which A transfers certain assets, receiving in exchange, the stock of corporation B. A then distributes the stock of …

Impact Of Recent Tax Stimulants On Modest Enterprises, L. Hart Wright, Jerome B. Libin

Michigan Law Review

The recession year 1958 found Congress in a mood to "aid and encourage small business" through more favorable tax treatment. The thrust of the ensuing legislation touched in varying degrees the whole life span of a modest enterprise, from organization through liquidation. The focus here, however, will be confined to a consideration of the practical impact of the recent statutory changes on the organizational and ordinary operational phases of such a business.

Descent And Distribution - Joint Ownership - Imposition Of Constructive Trust On Murderer Of Co-Tenant, John B. Schwemm S.Ed.

Michigan Law Review

A husband, owning land with his wife as tenants by the entireties, killed her and immediately thereafter committed suicide. In an action to determine ownership of the realty, both the probate and appellate courts declared that since a relevant disinheritance statute was inapplicable, full title vested in the husband and, upon his death, descended to his heirs. On appeal, held, reversed. Despite the common law nature of such tenancies, equity will impose on the husband a constructive trust in one-half the property for the benefit of the victim's estate. National City Bank of Evansville v. Bledsoe, (Ind. 1957) …

Antitrust Policy In Distribution, Kendall B. Debevoise

Michigan Law Review

The American genius lies quite as much in distribution as in manufacturing. Other peoples have demonstrated equal or greater creative ability in many fields. And it is debatable whether their talents are any less at mass production given adequate economic demand. But they have nowhere shown the American genius for distribution. It is axiomatic that if you manufacture in Detroit and your potential customer lives in New York, you need mutual friends. We seem to have figured out better ways to provide better friends for this purpose than any other nation.

But manufacturing came first. Someone had to build a …

Taxation - Federal Income Tax - Extent To Which A Dividend In Kind Is Ordinary Income Under The Internal Revenue Code, Alice Austin S.Ed.

Michigan Law Review

Taxpayer, a corporate shareholder, received from the corporation a distribution of property which had appreciated in value over its adjusted cost. The earnings and profits of the corporation were sufficient to cover the adjusted cost of the property distributed, but were not sufficient to cover its full fair market value at the time of distribution. The Tax Court held that the fair market value of the distribution was taxable as a dividend only to the extent of the corporation's earnings and profits. On appeal, held, reversed. In determining whether a distribution in kind is a dividend under section 115(a), …

Wills-Failure Of Residuary Clause To Pass Undevised Property, Robert T. Haines

Michigan Law Review

Decedent, in his will, declared that he had, by trust agreement of even date, "disposed of all my intangible personal property, both during the remainder of my lifetime and after my death. Said Trust Agreement does not include within its terms my real estate, my tangible personal property, or any money. . . . This will is, therefore, specifically designed to provide for the distribution of said real estate, tangible personal property, and money." After certain specific gifts decedent directed that, "all the rest and residue of my estate, of every description, real, personal and mixed, and wherever situated," be …

Future Interests-Worthier Title Doctrine Applied To Remainder To Next Of Kin Where The Subject Matter Is Personalty, Margaret Groefsema S.Ed.

Michigan Law Review

The trustee bank petitioned for instructions as to the proper disposition of the remainder of a trust of personal property, the principal of which amounted to some $29,000 upon the life beneficiary's death in 1942. The donor had provided for a life estate in the income, the principal to go to the settler's statutory next of kin under the laws of intestacy of the state of Massachusetts in default of the exercise by the settler of a reserved power of appointment. The court, having held that a will which Nicolls, the settler, had executed in favor of various friends of …

Executors And Administrators - Rights Of Creditors Of Legatee Or Distributee During Administration Of Decedent's Estate, Herbert R. Whiting

Michigan Law Review

In order to present a clear picture of the problem involved herein two assumptions must be made before proceeding further: (a) that it is desirable to subject to the claims of his creditors the interest of a legatee or distributee, providing certain procedural and administrative difficulties, subsequently to be considered, can be overcome; (b) that there is no realty in the decedent's estate.

Constitutional Law-Freedom Of The Press-Freedom Of Speech And Assembly-Police Power, John N. Seaman

Michigan Law Review

The recent decision by the federal district court in the case of Committee for Industrial Organization v. Hague has brought the civil liberties issue to the forefront again. Acting under a city ordinance, defendant's mayor, director of public safety, and chief of police refused to issue a permit to plaintiff labor union to distribute circulars, hold public meetings, or display placards in Jersey City, and excluded plaintiff's members from the city, acting under the belief that their doctrines were "un-American," and that their presence and activities were likely to provoke the city's inhabitants to breaches of the peace. It was …

Businesses Subject To The National Labor Relations Act, Joseph H. Mueller

Michigan Law Review

Justice Holmes once remarked that, "the life of the law has not been logic; it has been experience." This observation is illustrated in a striking manner by the recent change in the attitude of the Supreme Court with respect to Congressional regulation of labor relations in the field of production. Holding that the National Labor Relations Act applied to the steel, automobile, and clothing industries, as well as to the agencies of interstate commerce, the Court restated existing doctrine relating to interstate commerce, giving it new direction and content.

A Proposed Plan Of Classification For The Law, Charles C. Ulrich

Michigan Law Review

One of the greatest needs of the law today is a satisfactory plan of classification. Whenever codes have been drafted, or digests and encyclopedias of the law compiled, from the time of the Romans to the present, the first problem that presented itself was always that of classification. The question of classification was considered when the work of the American Law Institute was begun and the restatement of the law attempted, though it does not seem to have been given the attention it merited. And despite various schemes of legal classification that have been proposed in the course of time, …

Wills-Joint And Mutual-Disposal By Survivor

Michigan Law Review

H and W made a joint and mutual will, devising to the survivor a life interest in the joint property with certain absolute remainders over, and containing an agreement not to revoke without mutual consent. W died; her will was proved and H took the income for his life. When he died, a subsequent will was proved with provisions inconsistent with the joint will. Some of the legatees having died after W but before H, the question of distribution was before the court. Held, since H was bound by his agreement not to revoke, he held the property on …

Life Tenant And Remainderman-Income From Corporate Shares In Trust-Extraordinary Cash Or Stock Dividends

Michigan Law Review

A testator devises a block of corporate shares in trust,--the income to go to a life tenant for life, remainder to another as remainderman. So long as dividends are paid regularly, and in cash, distribution is a simple matter for the trustee. Dividends declared after the testator's death and before the death of the life tenant, are income and go to the life tenant; the rule operates regardless of when the profits which justify the declared dividends were earned. A real problem arises, however, when the corporation allows a surplus to accumulate for some time and then declares an extraordinary …