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Michigan Law Review

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Antitrust Civil Process Act-Requirements For A Civil Investigative Demand, Mary Mandana Long Apr 1964

Antitrust Civil Process Act-Requirements For A Civil Investigative Demand, Mary Mandana Long

Michigan Law Review

Petitioner sought an order from the United States District Court for the District of Minnesota modifying or setting aside a Civil Investigative Demand served upon it by the Antitrust Division of the Department of Justice. The demand was issued pursuant to the Antitrust Civil Process Act, which provides a compulsory pre-complaint procedure through which the Department of Justice may obtain documentary information upon which it can make a determination of whether there has occurred a violation of the antitrust laws. Section 1312(b) of the act requires that the demand state the nature of the conduct constituting the alleged violation, recite …


Securities Regulation-Applicability Of Exchange Act Section 10(B) To Transaction Effected By Means Of Intrastate Telephone Call, Michael A. Warner Apr 1964

Securities Regulation-Applicability Of Exchange Act Section 10(B) To Transaction Effected By Means Of Intrastate Telephone Call, Michael A. Warner

Michigan Law Review

Plaintiff alleged that he had been defrauded in a sale of securities to the defendant. Plaintiff attempted to invoke section 10(b) of the Securities Exchange Act of 1984, which prohibits various fraudulent practices in securities trading. In order to state a cause of action under 10(b), it was necessary for plaintiff to allege that a means or instrumentality of interstate commerce had been used directly or indirectly in connection with the sale. The sale in this case had been effected through telephone conversations over wires located within the city of Philadelphia. However, the wires carrying the calls could be used …


Copyrights-Liabilty Of Store Owner For Sale Of Infringing Phonograph Records By Concessionaire, Terrence L. Croft Apr 1964

Copyrights-Liabilty Of Store Owner For Sale Of Infringing Phonograph Records By Concessionaire, Terrence L. Croft

Michigan Law Review

Defendant H. L. Green Company licensed defendant Jalen Amusement Company as concessionaire of the record departments in twenty-three of its stores. The licensing agreement required Jalen's employees to follow all Green's rules and regulations and empowered Green to discharge any employee found to be conducting himself improperly. The gross receipts of the record department were collected by Green, Jalen receiving only the amount remaining after deductions for the license fee, salaries, and taxes. Although Jalen ordered and paid for the records and its employees made all the sales, record purchasers were unaware of Jalen's autonomy in the record department. Plaintiff, …


The Realization Requirement And Tax Avoidance, E. George Rudolph Apr 1964

The Realization Requirement And Tax Avoidance, E. George Rudolph

Michigan Law Review

Consider, for a moment, the plight of G. E. Hall. During 1947 Hall incurred a gambling debt to the Las Vegas Club variously estimated at between 145,000 and 478,000 dollars. The debt came into the sole ownership of one Binion, a partner in the club, and was eventually settled by Hall transferring to Binion an undivided one-half interest in certain cattle located in Arizona and Montana. Thereafter, Hall and Binion engaged in the ranching business as partners. At this point the Internal Revenue Service came forward with a claim that Hall, in the course of this disastrous chain of events, …


New And Comprehensive Duties Of Securities Sellers To Investigate, Disclose, And Have An "Adequate Basis" For Representations, Willoughby C. Johnson Mar 1964

New And Comprehensive Duties Of Securities Sellers To Investigate, Disclose, And Have An "Adequate Basis" For Representations, Willoughby C. Johnson

Michigan Law Review

The duties of investigation and disclosure imposed upon securities salesmen have been significantly enlarged by several recent cases generated by the Second Circuit's 1963 decision of Berko v. SEC. In a hearing before the Securities and Exchange Commission it was found that Berko was a salesman working out of an acknowledged "boiler room." His employer had provided its salesmen, including Berko, with fraudulent sales brochures, some of which were subsequently distributed by Berko. The action by the Commission against Berko arose out of the sale of a specific security to a customer who had received fraudulent sales brochures and …


Federal Criminal Procedure-Collateral Relief Under 28 U.S.C. Section 2255- Discretion Of Sentencing Court To Dismiss Successive Application Without Hearing, Richard B. Rogers Mar 1964

Federal Criminal Procedure-Collateral Relief Under 28 U.S.C. Section 2255- Discretion Of Sentencing Court To Dismiss Successive Application Without Hearing, Richard B. Rogers

Michigan Law Review

Prisoner, sentenced by a United States district court, filed two successive motions to vacate his sentence under 28 U.S.C. section 2255, which provides for a compulsory motion procedure for federal prisoners in lieu of habeas corpus. Under this section, a prisoner is required to petition the court which sentenced him in order to test the legality of his detention. The motion must be given a prompt hearing, "unless the motion and the files and records of the case conclusively show that the prisoner is entitled to no relief. .. " If a successive motion is filed for "similar relief" the …


Maritime Contiguous Zones, Lloyd C. Fell Mar 1964

Maritime Contiguous Zones, Lloyd C. Fell

Michigan Law Review

During the past two centuries, various states which had previously limited their claims of full sovereignty to narrow marginal seas have also asserted special types of jurisdiction over high seas zones outside what they claimed (or what others accepted) as territorial waters. This comment deals with such claims to contiguous zones of the high seas over which the littoral state asserts authority: which may affect the interests of other states.


Federal Income Tax-Deductibilty Of Depreciation In Year Of Sale Where Sale Price Exceeds Adjusted Basis Of Asset, Paul A. Rothman Mar 1964

Federal Income Tax-Deductibilty Of Depreciation In Year Of Sale Where Sale Price Exceeds Adjusted Basis Of Asset, Paul A. Rothman

Michigan Law Review

Plaintiff sold all the assets used in its business, in the middle of a fiscal year, at a price in excess of their depreciated cost at the beginning of the year. When plaintiff purchased the assets in question, it intended to use them until they became scrap. The assets were sold as part of a going concern years before plaintiff originally intended to dispose of them. A depreciation deduction claimed in the year of the sale was disallowed. An additional assessment was paid, a claim for refund was denied, and this suit was instituted. Held, judgment for plaintiff. Depreciation …


Child Custody In A Federal System, Leonard G. Ratner Mar 1964

Child Custody In A Federal System, Leonard G. Ratner

Michigan Law Review

Among the most difficult of judicial functions is the determination of a child's custody after its parents have separated. The difficulties are acute enough when all the parties remain in the same place; when the parties are in different states, an additional perplexing problem arises as to which state should have authority to make the custody decision. This broad question can be resolved into three distinct though interrelated issues: (1) what state may initially determine custody; (2) what state may later modify that determination; (3) to what extent is such a determination binding on other states.


The Evolving Role Of Section 16(B), William H. Painter Feb 1964

The Evolving Role Of Section 16(B), William H. Painter

Michigan Law Review

The evils which section 16(b) of the Securities Exchange Act of 1934 was enacted to prevent are well known. As expressed in one of the committee reports, this so-called "shortswing trading" provision was intended "to protect the interests of the public against the predatory operations of directors, officers, and principal stockholders of corporations by preventing them from speculating in the stock of the corporations to which they owe a fiduciary duty." To curb such speculation, section 16(b) provides for recovery by the corporation, or by one or more stockholders acting in its behalf, of any "profit realized" from purchases and …


Rule 10b-6: The Special Study's Rediscovered Rule, Jack M. Whitney Ii Feb 1964

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.


A Reappraisal Of The Role Of Disclosure, Robert L. Knauss Feb 1964

A Reappraisal Of The Role Of Disclosure, Robert L. Knauss

Michigan Law Review

The objective of this paper is to assess the current role of disclosure in its various aspects in security regulation. Following a brief description of the current uses of disclosure in securities regulation, there are separate sections describing and evaluating (1) the obligation of disclosure imposed on issuers at the initial sale of securities, (2) the obligation of disclosure resting on issuers if they have securities which are traded, and (3) obligations of disclosure imposed on parties in the securities business other than issuers. This last section includes obligations of insiders, broker-dealers, and investment advisers, as well as duties of …


Know-How Licensing And The Antitrust Laws, David R. Macdonald Jan 1964

Know-How Licensing And The Antitrust Laws, David R. Macdonald

Michigan Law Review

The purpose of this article is to re-analyze the present antitrust status of know-how licensing for the purpose of clarifying the extent of the protection which the exploiter of know-how may accord himself without abusing the public interest in unfettered competition.


Civil Procedure-Judgements-Mutuauty As Requirement For Assertion Of Collateral Estoppel Against Claimant Who Was Claimee In Prior Action, William E. Wickens Jan 1964

Civil Procedure-Judgements-Mutuauty As Requirement For Assertion Of Collateral Estoppel Against Claimant Who Was Claimee In Prior Action, William E. Wickens

Michigan Law Review

Plaintiff corporations, the sole shareholder of which was their president, sued defendant insurers to recover for the alleged theft of the corporations' furs. In an earlier criminal action, the president (conceded by the corporations to be their mere alter ego for purposes of res judicata) had been convicted of attempted grand theft, conspiracy to commit grand theft, and the filing of fraudulent insurance claims for loss of the same furs; it was there determined that the president had staged the theft of the furs. In plaintiffs' civil action, the superior court rejected defendants' plea of collateral estoppel as to the …


Compulsory Oil And Gas Unitization: Effect On Overriding Royalty Obligations- A Hypothetical Judgement Of The High Court Of Juristic Review In Peter Fox Brewing Co. V. Sohio Petroleum Co., Maurice H. Merrill Jan 1964

Compulsory Oil And Gas Unitization: Effect On Overriding Royalty Obligations- A Hypothetical Judgement Of The High Court Of Juristic Review In Peter Fox Brewing Co. V. Sohio Petroleum Co., Maurice H. Merrill

Michigan Law Review

Jus, Chief Justice. As should be well known, our practice is to sit in review of decisions presenting elements of difficulty, and concerning the propriety of which there seems reason for doubt. We have no jurisdiction to reverse, to modify, or to affirm. Our judgment must be confined to approval or to disapprobation, or to some position between these two extremes.


Constitutional Law-Self-Incrimination- Denial Of Privilege To General Partner Holding Subpoenaed Books And Records Of Limited Partnership, Roger L. Mcmanus Jan 1964

Constitutional Law-Self-Incrimination- Denial Of Privilege To General Partner Holding Subpoenaed Books And Records Of Limited Partnership, Roger L. Mcmanus

Michigan Law Review

A special agent of the Internal Revenue Service sought enumerated books and records of four New York limited partnerships in connection with petitioner's tax liability for prior years. A subpoena duces tecum was issued directing petitioner to produce the records, which were in his possession as general partner. Petitioner, his son, and his son-in-law were the general partners of each limited partnership involved, with limited partners ranging from twenty-five to 119 in number and capitalization from 225,000 dollars to 2,740,000 dollars. The partnerships, together with a management company, were housed in a single office with a staff of one secretary. …


Rights Of Persons Compelled To Appear In Federal Agency Investigational Hearings, David C. Murchison Jan 1964

Rights Of Persons Compelled To Appear In Federal Agency Investigational Hearings, David C. Murchison

Michigan Law Review

By statutes designed to protect the public interest, many federal administrative agencies-such as the Interstate Commerce Commission, the Federal Communications Commission, the Securities and Exchange Commission, the Federal Trade Commission, and the Civil Aeronautics Board-are granted authority to conduct investigations dealing with substantive matters committed to their respective jurisdictions. In an increasing number of instances, these agencies are empowered to utilize compulsory process; persons may be ordered to appear and give testimony or to produce documents in so-called investigational hearings, subject to criminal sanctions for noncompliance. The use of investigational hearings by these agencies as an ancillary law enforcement tool …


Recent Books, Michigan Law Review Jan 1964

Recent Books, Michigan Law Review

Michigan Law Review

A List of Books Received by Michigan Law Review


Securities Regulation-Sec Rule 10b-5-Recovery By Corporation Induced By Fraud Of Insider To Issue Shares, Charles K. Dayton Dec 1963

Securities Regulation-Sec Rule 10b-5-Recovery By Corporation Induced By Fraud Of Insider To Issue Shares, Charles K. Dayton

Michigan Law Review

Trustees in reorganization of a corporation brought suit on its behalf to recover damages under section 10(b) of the Securities Exchange Act of 1934 and rule 10b-5 of the Securities and Exchange Commission, alleging that the corporation had been fraudulently induced by defendant, its comptroller, to issue stock for inadequate consideration. Also named as defendants were the American Stock Exchange and several banks and brokers, whose alleged complicity in the improper public distribution of the shares made them parties to the scheme to defraud the corporation. On a motion by all defendants but the comptroller to dismiss the complaint for …


Patents-Patent Grant By Private Law-Constitutionality Of Grant After Expiration Of Time Limit, Stanley P. Wagner Jr. Dec 1963

Patents-Patent Grant By Private Law-Constitutionality Of Grant After Expiration Of Time Limit, Stanley P. Wagner Jr.

Michigan Law Review

An army officer invented a radar system before World War II but was prevented from patenting it by his superior officers for security reasons. In 1945 his application for a patent was rejected because it was not filed within the time limit embodied in section 102(b) of the Patent Code.1 Congress, in 1950, enacted Private Law 10082 to waive the statutory time limit for the officer's patent application. The act provided that a patent should issue from the 1945 application if the invention .met all the other statutory requirements of the Patent Code. The act provided also that the patent …


Notice Requirements Of Guaranty Contracts, Richard F. Dole Jr. Nov 1963

Notice Requirements Of Guaranty Contracts, Richard F. Dole Jr.

Michigan Law Review

The following is an attempt to verify Corbin's educated guess through the application of factual analysis. If significant facts can be isolated which produce the same result regardless of the theory applied by the court, no real conflict can be said to exist. An initial exploration of the problems involved is a prerequisite to delineating the area in which factual analysis must be used.


Patents-Procedure-Applicability Of Invention Secrecy Act Where Government Use Of Invention Is Authorized, Thomas G. Dignan Jr. Nov 1963

Patents-Procedure-Applicability Of Invention Secrecy Act Where Government Use Of Invention Is Authorized, Thomas G. Dignan Jr.

Michigan Law Review

After extended negotiations, plaintiff entered into a contract with the United States for the development of a new model "hemisphere sight," a mock-up of which plaintiff had previously revealed to the Air Force. Acting upon a request by the Air Force, the Commissioner of Patents issued a secrecy order on the gun sight pursuant to provisions of the Invention Secrecy Act, thus preventing the issuance of a patent to the plaintiff. In order for the United States to have a second source of supply for the sights, the plaintiff revealed its engineering information to another manufacturer upon governmental request to …


Torts-Negligent Misrepresentation-Abolition Of The Privity Requirement, Leon E. Irish Nov 1963

Torts-Negligent Misrepresentation-Abolition Of The Privity Requirement, Leon E. Irish

Michigan Law Review

Defendants, professional consulting engineers, contracted with the city of Chattanooga to design a sewage system. As part of their performance of the contract they prepared a report of geological conditions which was to be distributed by the city to prospective bidders. Plaintiff, a tunneling subcontractor, had no dealings with the defendants, but did rely on their report in making its bid. Because one of defendant's draftsmen carelessly omitted pertinent geological information from the report, it took plaintiff three weeks longer to complete the work than had been anticipated. Plaintiff sued defendant for damages for misrepresentation; held, plaintiff may recover. …


Shuman: Legal Positivism: Its Scope And Limitations, Edgar Bodenheimer Nov 1963

Shuman: Legal Positivism: Its Scope And Limitations, Edgar Bodenheimer

Michigan Law Review

A Review of Shuman: Legal Positivism: Its Scope and Limitations . By Samuel I. Shuman


The New Michigan Pre-Trial Procedural Rules-Models For Other States?, Robert Meisenholder Jun 1963

The New Michigan Pre-Trial Procedural Rules-Models For Other States?, Robert Meisenholder

Michigan Law Review

The new Michigan procedural laws are embodied in a revised set of statutes and court rules which became effective January 1, 1963, after a long period of study by a Joint Committee on Michigan Procedural Revision. They abolish an anachronistic distinction between procedures in law and equity, abrogate a scattered, disorganized set of rules and statutes, and create a unified, coherent procedural system.


Federal Jurisdiction-Three-Judge Courts-The Recent Evolution In Jurisdiction And Appellate Review, Peter W. Williamson S.Ed. Jun 1963

Federal Jurisdiction-Three-Judge Courts-The Recent Evolution In Jurisdiction And Appellate Review, Peter W. Williamson S.Ed.

Michigan Law Review

This comment seeks to analyze each decision against its historical background. No more than a proforma attempt will be made to integrate one decision with the others, for sufficient material is not yet available to predict with any accuracy the Court's ultimate achievements in this important area of federal civil procedure.


The Worker And Three Phases Of Unionism: Administrative And Judicial Control Of The Worker-Union Relationship, Alfred W. Blumrosen Jun 1963

The Worker And Three Phases Of Unionism: Administrative And Judicial Control Of The Worker-Union Relationship, Alfred W. Blumrosen

Michigan Law Review

This article will examine the extent to which, and the methods by which, individual rights are protected in each of these three phases of union activity. We will see that the employee is well protected in his right to oppose political action of the union and has considerable legal protection for his rights to engage in internal union political struggles, but the employee has received little protection for his economic interests in collective bargaining between unions and employers. A recent decision by the NLRB, which will be examined in some detail, suggests that additional protection for individual economic rights in …


Federal Civil Procedure-Federal Rule 16-Definition Of Issues By The Pre-Trial Judge, F. Bruce Kulp Jr. Jun 1963

Federal Civil Procedure-Federal Rule 16-Definition Of Issues By The Pre-Trial Judge, F. Bruce Kulp Jr.

Michigan Law Review

Plaintiff instituted a civil antitrust suit against defendant in 1956. After numerous pre-trial conferences, the parties reached agreement as to the definition of only some of the issues. On other issues, however, the parties tendered different versions and were unable to reach an agreement. In a progress memorandum, the court issued a pre-trial order adopting defendant's version of the issues and rejecting the version proposed by plaintiff. The court reasoned that, under Federal Rule 16, it has the authority to adopt the formulation of issues proposed by one of the parties even though the other party is not in complete …


Federal Jurisdiction-Federal Civil Procedure-Right To Jury Trial Of Seaman's Claim For Maintenance And Cure Where Joined With Claim Under Jones Act, Edwin A. Howe Jr. Jun 1963

Federal Jurisdiction-Federal Civil Procedure-Right To Jury Trial Of Seaman's Claim For Maintenance And Cure Where Joined With Claim Under Jones Act, Edwin A. Howe Jr.

Michigan Law Review

Plaintiff seaman, having been injured while in the employ of defendant shipowner, filed an action in federal district court. Plaintiff invoked the court's federal-question jurisdiction alone, under section 1331 of the federal Judicial Code. He alleged claims for negligence under the Jones Act, for unseaworthiness, and for maintenance and cure, and demanded jury trial of all three counts. The trial court sustained the demand as to the first two counts, but ordered that the claim for maintenance and cure be tried to the judge alone, sitting as a court of admiralty. On appeal from the order denying jury trial …


Condominium--Home Ownership For Megaopolis?, John E. Cribbet May 1963

Condominium--Home Ownership For Megaopolis?, John E. Cribbet

Michigan Law Review

The past year, 1962, witnessed no let up in the cold war between East and West. In the race for the conquest of space, in the battle of national rates of economic growth, in the propaganda struggle to fix the responsibility for nuclear testing, in the trial of strength over Cuba, and in countless other areas, each bloc leader continued to measure achievement against the rival's successes or defeats. The cold war is a deadly business and produces little to warm the cockles of a man's heart, but, if only the threat of nuclear destruction could be averted, there is …