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Full-Text Articles in Law

The Law School-1950-51, E. Blythe Stason Dec 1950

The Law School-1950-51, E. Blythe Stason

Michigan Law Review

Notwithstanding wars and rumors of wars, the September 1950 semester opens with almost 1000 prospective candidates for the legal profession, 372 members of the first-year class, 288 members of the second-year class, 284 in the third-year class, 24 graduate students in law and 3 special students, making a total of 971 students. The enrollment is actually 59 less than last year when a total of 1030 students were enrolled for the fall semester, but the call of reservists and the prospective induction of all other able bodied male persons have had a noticeable though limited effect. Moreover, they create an …


Constitutional Limitations On The Regulation Of Union And Employer Conduct, Charles O. Gregory Dec 1950

Constitutional Limitations On The Regulation Of Union And Employer Conduct, Charles O. Gregory

Michigan Law Review

This is a discussion of constitutional issues involved in federal and state regulations pertaining to labor. The importance of substantive due process has dwindled away, except in relation to picketing and Jim Crow unionism. The dominant issue has become the exercise of power, in a jurisdictional sense, to eliminate socially injurious practices. During the past half century the Supreme Court has taken almost all possible positions on these matters. Pursuing the ideal of a living document, the Court has retailored the Constitution to suit the political exigencies and the dominant interest pressures of any given time.


Bankruptcy-The New Test Of Perfection Under Section 60a-Effect Of Public Law 461, William R. Worth S.Ed. Dec 1950

Bankruptcy-The New Test Of Perfection Under Section 60a-Effect Of Public Law 461, William R. Worth S.Ed.

Michigan Law Review

A preference given to a creditor by an insolvent debtor is not a fraud on his other creditors, regardless of the fact that such payment reduces the share that they would be able to obtain upon an orderly liquidation and pro rata distribution of his estate. This simple principle has caused great confusion and trouble in the development of collective procedures for the satisfaction of the claims of creditors. It led through various channels to a very sweeping definition of preferences and provision for their avoidance in the Chandler Act of 1938, and has now produced, by a process of …


Robinson-Patman Act--Validity Of Functional Discounts, Charles Myneder S.Ed. Dec 1950

Robinson-Patman Act--Validity Of Functional Discounts, Charles Myneder S.Ed.

Michigan Law Review

The Robinson-Patman Act was an effort by Congress to rid the business community of unfair pricing practices. Since the act did not expressly refer to functional discounts, the continuing legality of their usage was an open question. It is the purpose of this comment to measure the extent to which the trade discount has been affected by the act as interpreted by the Federal Trade Commission and the courts.


Aliens-Naturalization-"Good Moral Character" Under The Nationality Act, Jean Engstrom S.Ed. Dec 1950

Aliens-Naturalization-"Good Moral Character" Under The Nationality Act, Jean Engstrom S.Ed.

Michigan Law Review

Petitioner owned and operated a saloon but, because operators' licenses are not issued to aliens in Louisiana, he had obtained his license in his son's name since 1943. From 1923 to 1942 he was convicted of five liquor law violations: two acts were punished by both state and federal authorities in 1923 and 1924; the fifth conviction was for violation of the Sunday laws in 1942. He had been arrested at other times for liquor violations and for operating slot machines, but the record showed no disposition of these cases. He had lived in Louisiana for forty-six years, and his …


Corporations-Measure Of Short Swing Profits Under Section 16(B) Of The Securities Exchange Act Of 1934, G. B. Myers S.Ed. Dec 1950

Corporations-Measure Of Short Swing Profits Under Section 16(B) Of The Securities Exchange Act Of 1934, G. B. Myers S.Ed.

Michigan Law Review

Plaintiff, a stockholder in X corporation, sued in the name of and on behalf of the corporation to recover short swing profits made by defendants in the sale of stock purchase warrants of the corporation, in violation of the Securities Exchange Act. Defendants were officers of the corporation and as part of the consideration for entering into their contracts of employment they received each year a number of these warrants. Within six months of the receipt of their 1945 warrants defendants had made certain sales of warrants then held by them. The court, in a previous ruling, had granted a …


Federal Courts-Substitution Of Parties By Amendment Under The Federal Rules To Correct A Jurisdictional Defect, Rex Eames S.Ed. Dec 1950

Federal Courts-Substitution Of Parties By Amendment Under The Federal Rules To Correct A Jurisdictional Defect, Rex Eames S.Ed.

Michigan Law Review

The plaintiffs, local officers of a union, sued to enjoin the national officers of the union from interfering with plaintiffs' union duties. Because the original complaint failed to show diversity of citizenship as a basis for federal jurisdiction, plaintiffs sought by amendment to substitute five nonresident members of the union as parties plaintiff and to change the action to a class suit. Held, the court had the power to permit such an amendment but, in the exercise of its discretion, it would not do so here. National Maritime Union of America v. Curran, (D.C. N.Y. 1949) 87 F. …


Negligence-Liability Of Manufacturer Or Vendor To An Allergic Consumer, Zolman Cavitch S.Ed. Dec 1950

Negligence-Liability Of Manufacturer Or Vendor To An Allergic Consumer, Zolman Cavitch S.Ed.

Michigan Law Review

The study of allergies is relatively new to the medical profession. It is not surprising, therefore, that only a few courts have dealt with the problem of the liability of the manufacturer or vendor to the consumer who is allergic to an ingredient in the defendant's product. Many dyes, cosmetics, drugs and health and beauty aids in universal use, however, contain known allergenic ingredients. Medical authorities estimate the incidence of well-defined allergies at between five to ten per cent of the total population and one authority suggests that allergies are actually increasing in frequency. When we add to this parade …


Constitutional Law-Equal Protection Clause-County Unit Vote, Charles Myneder S.Ed. Dec 1950

Constitutional Law-Equal Protection Clause-County Unit Vote, Charles Myneder S.Ed.

Michigan Law Review

Plaintiffs brought an action against defendants, Chairman of the Georgia State Democratic Executive Committee and others, to restrain adherence to a state statute providing that the County Unit Vote shall determine the outcome of a primary election. Under the statute each county is alloted a number of unit votes. The candidate receiving the highest popular vote in the county is awarded the unit votes of that county. Plaintiffs, residents of the most populous county in the state, alleged that their votes had on an average but one-tenth the weight of those in the other counties in the state. From a …


Municipal Corporations - Rescission By Electorate Of Approval To Issue Bonds - Use Of Referendum Power To Prevent Action By The Majority, Robert P. Griffin S.Ed. Dec 1950

Municipal Corporations - Rescission By Electorate Of Approval To Issue Bonds - Use Of Referendum Power To Prevent Action By The Majority, Robert P. Griffin S.Ed.

Michigan Law Review

At their annual meeting, the voters of a Vermont city approved the issuance of municipal bonds to finance erection of a sewage disposal plant. Before further action was taken, a group of citizens, acting in accordance with a charter provision, presented the mayor with a petition containing one hundred signatures which demanded that a special meeting he called to vote on a proposal to rescind the approval previously given. The voters refused to rescind. Twice thereafter petitions were filed with the mayor asking that special meetings be called to reconsider the question, but on each of these occasions the petitions …


Partnerships-Dissolution-Sufficiency Of Notice To Prior Creditors, Paul M.D. Harrison S.Ed. Dec 1950

Partnerships-Dissolution-Sufficiency Of Notice To Prior Creditors, Paul M.D. Harrison S.Ed.

Michigan Law Review

Plaintiff brought suit on account for merchandise sold and delivered, alleging that the defendants were liable as partners. The defendants admitted that they had dealt with the plaintiff while they were a partnership, but averred that a corporation was formed which took over the partnership and that the merchandise in question had been purchased by the corporation. The trial judge instructed the jury that plaintiff must have notice or knowledge of the dissolution of the partnership to relieve defendants of personal liability, and that mere notice of the formation of the corporation was immaterial. Held, judgment for plaintiff affirmed. …


Bowen: John Adams And The American Revolution, Michigan Law Review Dec 1950

Bowen: John Adams And The American Revolution, Michigan Law Review

Michigan Law Review

A Review of JOHN ADAMS AND THE AMERICAN REVOLUTION. By Catherine Drinker Bowen.


The Taxable Income Of Cooperatives, Roswell Magill, Allen H. Merrill Dec 1950

The Taxable Income Of Cooperatives, Roswell Magill, Allen H. Merrill

Michigan Law Review

This article is a study of the exemption in section 101(12) of "farmers', fruit growers', or like associations organized and operated on a cooperative basis"; and, in particular, of the taxability of the income of such corporations. The basic question is, What is the taxable income of a cooperative, in the absence of statutory exemption or exemption by administrative ruling? Do such business corporations have an income from their businesses which in these days of revenue stringency should be taxed as other business income must be taxed?


Basic Criteria For Distinguishing Revenue Charges From Capital Expenditures In Income Tax Computations, Abe L. Shugerman Dec 1950

Basic Criteria For Distinguishing Revenue Charges From Capital Expenditures In Income Tax Computations, Abe L. Shugerman

Michigan Law Review

In the sections that follow, every effort has been made to deduce the motivating philosophy behind the judicial decisions that have been rendered on this question. Courts, themselves, have never paused to prescribe any detailed criteria to be applied, but an examination of the opinions has revealed that consciously or unconsciously the courts have been moved by such basic criteria. Even though such criteria may not have been precisely designated, they have been present, they have been utilized, and interestingly enough, the courts have been amazingly consistent in their applications of these criteria.


Corporations-Stockholder's Suit To Compel Declaration Of Dividends- Necessity Of Directors As Parties, Daniel A. Isaacson S.Ed. Dec 1950

Corporations-Stockholder's Suit To Compel Declaration Of Dividends- Necessity Of Directors As Parties, Daniel A. Isaacson S.Ed.

Michigan Law Review

Plaintiff, a citizen of New York and the owner of some preferred stock in the defendant Delaware corporation, brought a class action against the corporation in a federal district court in Pennsylvania to compel the declaration and payment of dividends on the preferred stock, alleging that the directors had acted in had faith in violation of their duties as fiduciaries. Defendant's articles of incorporation provided that the preferred stock was entitled to receive dividends "when and as declared by the Board of Directors"; the by-laws permitted a majority of the hoard to constitute a quorum for purposes of transacting business. …


Practice And Procedure-Third-Party Practice-Subrogation And Contribution- Right Of Defendant To Join Physician Who Aggravated Lnjuries, Richard B. Gushée S.Ed. Dec 1950

Practice And Procedure-Third-Party Practice-Subrogation And Contribution- Right Of Defendant To Join Physician Who Aggravated Lnjuries, Richard B. Gushée S.Ed.

Michigan Law Review

A brought an action against B for injuries suffered in an automobile accident and aggravation of those injuries by the negligent treatment of a physician, D. B filed a third-party complaint against D for malpractice contending that D was liable over to him for all or a part of the judgment recovered by A. D's motion to dismiss the third-party complaint for want of a sufficient cause of action was denied. On appeal, held, affirmed. A tort-feasor who has been held liable for injuries is subrogated to any right of action which the injured party may …


Evidence-Probative Value Of Inferences From Failure To Call A Witness, Cleaveland J. Rice S.Ed. Dec 1950

Evidence-Probative Value Of Inferences From Failure To Call A Witness, Cleaveland J. Rice S.Ed.

Michigan Law Review

lnsured sued to recover sickness benefits under an insurance policy. The defense was that the insured was not in good health when the policy was issued. The only evidence introduced by the defendant insurance company was plaintiff's refusal to consent to taking the deposition of an examining hospital physician. Defendant's request for a directed verdict on the issue of good health was refused. After being instructed that from the refusal to permit taking of the deposition they might "presume that such evidence . . . would operate against plaintiff and be against his interest in this suit," the jury returned …


Negligence-Proximate Cause-Foreseeability Of Negligent Intervening Act, Lewis R. Williams, Jr. S.Ed. Dec 1950

Negligence-Proximate Cause-Foreseeability Of Negligent Intervening Act, Lewis R. Williams, Jr. S.Ed.

Michigan Law Review

Plaintiff's intestate purchased from Montgomery Ward & Company a gas water heater which had been manufactured by a third party. The heater was installed by defendant Rulane Gas Company. It worked satisfactorily for fourteen months until the flame went out due to unknown causes. Deceased notified the defendant, and sixteen hours later it sent a repairman to investigate the trouble. He descended to the basement with deceased and struck a match in disregard of a warning not to do so. An explosion followed in which both deceased and the repairman were killed. Investigation showed that the "automatic cut-off" valve was …


Powell: Real Property, Allan F. Smith Dec 1950

Powell: Real Property, Allan F. Smith

Michigan Law Review

A Review of REAL PROPERTY. Vol. 1. By Richard R. Powell.


Future Interests-Rule Against Perpetuities-Vesting Of Residuary Estate In Trustee For Charity Subject To A Condition Precedent, Edward W. Rothe S.Ed. Dec 1950

Future Interests-Rule Against Perpetuities-Vesting Of Residuary Estate In Trustee For Charity Subject To A Condition Precedent, Edward W. Rothe S.Ed.

Michigan Law Review

The will of testatrix provided: after the payment of debts and legacies, "I give, devise and bequeath" the residue of my estate to a charitable foundation. Held, the provision for payment of debts and legacies refers only to the quantum of estate the trustee will take and not to the time when his title vests in interest; it constitutes no condition precedent to the vesting of title in the trustee for charity. Therefore, the rule against perpetuities, which applies only to remoteness of vesting and not to postponement of possession and enjoyment, has no application. The fact that debts …


Judgments-Effect Of A Recital Of Jurisdiction In A Foreign Judgment Record, James F. Gordy S.Ed. Dec 1950

Judgments-Effect Of A Recital Of Jurisdiction In A Foreign Judgment Record, James F. Gordy S.Ed.

Michigan Law Review

Plaintiff brought an action in the District of Columbia on a Maryland default judgment, offering in evidence the docket entries wherein there was a recital of personal jurisdiction by virtue of a constable's return of summons. Defendant attacked the Maryland judgment on the ground of lack of jurisdiction over the person, testifying and offering evidence, vague and conflicting, but tending to show that he had no notice of the action or judgment until the present suit. Plaintiff testified to the contrary and advanced certain facts to indicate that defendant had been served and had secured several continuances in the prior …


Real Property-Tax Sales-Title Of Purchaser Of Land Subject To Easement, John J. Gaskell S.Ed. Dec 1950

Real Property-Tax Sales-Title Of Purchaser Of Land Subject To Easement, John J. Gaskell S.Ed.

Michigan Law Review

In an action to enforce a lien for taxes on real property, the defendants counterclaimed, asking for a declaratory judgment as to whether a sale of real property for nonpayment of taxes extinguishes an easement with which the property is burdened. The easement was appurtenant to an adjoining parcel of land. Held, an easement appurtenant is not extinguished by sale of the servient tenement for nonpayment of taxes. District of Columbia v. Capital Mortgage & Title Co., Inc., (D.C. Cir. 1949) 84 F. Supp. 788.


Taxation-Income Tax-Deductions For Expenses Of Army Officer, Daniel A. Isaacson S.Ed. Dec 1950

Taxation-Income Tax-Deductions For Expenses Of Army Officer, Daniel A. Isaacson S.Ed.

Michigan Law Review

Respondent, having had experience as an executive of a large machine tool distributing company, went to Washington, D.C. in 1942 at the request of the Ordnance Department of the United States Army to assist in the efficient distribution of machine tools, serving in a civilian capacity without compensation. During the year, he was commissioned in the army, attaining the rank of Lieutenant Colonel, and was assigned to the Army & Navy Munitions Board as Ordnance Officer, in which capacity he had to keep in contact with manufacturers of production equipment as well as with various government agencies. In his income …


Taxation-Stock Dividends As Income, Joseph G. Egan S.Ed. Dec 1950

Taxation-Stock Dividends As Income, Joseph G. Egan S.Ed.

Michigan Law Review

X corporation had two classes of stock outstanding. The Class A stock was a preferred stock entitled to cumulative dividends and a liquidation preference. The Class B stock was a non-voting stock, entitled to an annual $2 dividend after payment of the dividend on the preferred. Both classes were entitled to participate equally (on a pro rata basis) in any dividends in excess of the two mentioned above. The corporation declared a stock dividend, entitling each Class A holder to one-half share of Class A stock for each share presently held, and each Class B holder to one-half share of …


Operative Relationships Among Various Courts, Law Enforcement And Welfare Agencies In The City Of Detroit, Maxine Boord Virtue Nov 1950

Operative Relationships Among Various Courts, Law Enforcement And Welfare Agencies In The City Of Detroit, Maxine Boord Virtue

Michigan Law Review

This article is the seventh chapter of a book, Survey of Metropolitan Courts: Detroit Area, which is being published this year by the Michigan Legal Series. It was prepared by this writer as a Research Associate in the employ of the Law School of the University of Michigan, under the supervising editorship of Professor Edson R. Sunderland. The study was undertaken at the request of the Committee on Judicial Administration in Metropolitan Trial Courts, appointed by the Section on Judicial Administration of the American Bar Association, of which committee Ira W. Jayne, Presiding Judge of the Circuit Court of …


Appeal And Error-Significance Of Denial Of Certiorari As Precedent By United States Supreme Court, Edward W. Rothe S.Ed. Nov 1950

Appeal And Error-Significance Of Denial Of Certiorari As Precedent By United States Supreme Court, Edward W. Rothe S.Ed.

Michigan Law Review

Respondents were found guilty of contempt of court for broadcasting dispatches concerning a person about to be tried on a charge of murder. The convictions were reversed on constitutional grounds by the Court of Appeals of Maryland, relying upon certain decisions of the United States Supreme Court. The state sought a writ of certiorari on the ground that the Maryland court had misconceived the rulings of the Supreme Court. Although the application for certiorari was denied, Justice Frankfurter took occasion to write an opinion stating that the denial of the writ meant only that fewer than four members of the …


Attorneys At Law-Substitution Of Attorneys-Protection Of The Attorney's Right To Compensation, G. B. Myers S.Ed. Nov 1950

Attorneys At Law-Substitution Of Attorneys-Protection Of The Attorney's Right To Compensation, G. B. Myers S.Ed.

Michigan Law Review

Plaintiff employed an attorney on a contingent fee basis. After the suit had been begun, but before trial, plaintiff moved to dismiss and to substitute attorneys so that he might bring the action in another state. The attorney objected, claiming that the court should secure him in his right to one-third of the recovery. Plaintiff contended that the attorney was only entitled to the reasonable value of his services. On argument to the court, held, for plaintiff. When the employment is upon a contingent fee basis the attorney discharged without cause has a right only to the reasonable value …


Bills And Notes-The Meaning Of "Next Business Day", Richard B. Gushée S.Ed. Nov 1950

Bills And Notes-The Meaning Of "Next Business Day", Richard B. Gushée S.Ed.

Michigan Law Review

Two checks, payable to the plaintiff, were forwarded to the defendant drawee for payment on February 13, 1949. After the close of banking hours on February 14, the defendant telegraphed the presenting bank advising that it would not pay the checks. The applicable Illinois statute allowed banks until the end of the "next business day" following the day of presentation to decide whether or not they would pay checks. The plaintiff argued that "business" qualified "day" and that defendant therefore should have indicated its decision within business hours on the day following the day of presentation, and that since it …


Labor Law--Federal-State Relations--Validity Of Michigan's Labor Mediation Act, R. L. Storms S.Ed. Nov 1950

Labor Law--Federal-State Relations--Validity Of Michigan's Labor Mediation Act, R. L. Storms S.Ed.

Michigan Law Review

Plaintiff labor union called a strike against defendant auto corporation in May, 1948, without conforming to the prescribed state procedure. The purpose of the strike was to enforce demands for higher wages and the strike was conducted peacefully. To enjoin possible criminal prosecution the union instituted the instant suit in the state courts, contending that the Michigan labor mediation law, the much publicized "Bonine-Tripp Act," violated the due process and commerce clauses of the Federal Constitution. The Michigan Supreme Court reversed the decision of the trial court which had granted the injunction. On appeal, held, reversed. Congress has occupied …


Libel And Slander-Necessity For Allegation Of Special Damages For Defamation Not Shown Libelous Per Se, John J. Gaskell S.Ed. Nov 1950

Libel And Slander-Necessity For Allegation Of Special Damages For Defamation Not Shown Libelous Per Se, John J. Gaskell S.Ed.

Michigan Law Review

Defendants, the deacons, pastor, and clerk of the Gallatin Baptist Church, published to the church membership a letter to the plaintiff, an ordained minister of the Baptist Church, and a member of the Gallatin Church, requiring him to report and show cause why the hand of fellowship should not be withdrawn from him because of heresy. The plaintiff's complaint for libel set out the letter published, but a motion to dismiss for failure to state a cause of action was sustained by the circuit court on the grounds that there was no allegation of special damages to the plaintiff. On …