Digital Commons Network^™

The Compulsory Manufacturing Provision-An Anachronism In The Copyright Act, Clinton R. Ashford S. Ed.

Michigan Law Review

The protection afforded foreign authors under the United States Copyright Act at the present time is subject to stringent restrictions. Copyright will not be granted to a person who is neither a citizen nor a resident of the United States unless he complies with a great many formalities, and, in addition, conforms with the compulsory manufacturing requirement. It is the object of this comment to examine the manufacturing provision, section 16 of the Copyright Law, and to show why it should be deleted from the act.

Taxation-The Lincoln Electric Question: Must "Ordinary And Necessary" Business Expenses Be Also "Reasonable" In Amount, R. Lawrence Storms S. Ed.

Michigan Law Review

The United States Court of Appeals for the Sixth Circuit has recently determined in Commissioner v. Lincoln Electric Co. that the element of reasonableness is inherent in the phrase "ordinary and necessary" as used in the paragraph of the Internal Revenue Code authorizing deductions for business expenses. It will be of interest to develop the history of the case throughout its ten years of litigation, to examine some of the collateral points raised, and to attempt a critique of the merits of the court's position.

Insurance-Consummation Of The Contract-Delivery Of The Policy, John J. Gaskell S. Ed.

Michigan Law Review

An application for life insurance was accepted, and a policy issued, mailed to, and received by the agent of the insurer. The application provided that the policy would not take effect until "manual" delivery thereof. The agent made several unsuccessful attempts to deliver the policy, but before any physical transmission of the policy, the insured died. The beneficiaries sued to recover the amount of the policy. The trial court gave judgment for the defendant insurance company. On appeal, held, affirmed. Manual delivery was a valid condition precedent. There having been no manual transmission to the insured, and the plaintiffs …

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.

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.

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. …

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?

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 …

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 …

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 …

Some Problems In Federal Question Jurisdiction, George B. Fraser, Jr.

Michigan Law Review

Congress has given the federal district courts original and removal jurisdiction of all civil actions arising under the Constitution or laws of the United States, but the power of these courts to hear such cases has been restricted by the Supreme Court of the United States. The Supreme Court holds that the district courts have jurisdiction of a case if a federal question is raised in the complaint, but jurisdiction cannot be based on a federal question in the answer. This means that the district courts are closed to many cases that involve a substantial federal issue, while many cases …

Notes, Michigan Law Review

Michigan Law Review

The information given in the notes is derived from inspection of the books, publishers' literature, and the ordinary library sources.

Federal Courts-Removal Jurisdiction-Counterclaim As The Sole Basis For Removal, Paul M. D. Harrison S.Ed.

Michigan Law Review

Plaintiff brought an action for damages in a state court Defendant filed pleas to the declaration, and also filed a counterclaim arising out of the same cause of action. On this date defendant also filed a motion with the Federal District Court asking removal of the case based solely upon his counterclaim. On plaintiff's motion, held, case remanded to the state court. Defendant has no right under the United States Judicial Code to have a case removed from the state court to the federal court when his motion is based upon his own counterclaim. Collins v. Faucett, (D.C. …

Corporations-Right Of Corporation To Pay Dividends To Common Shareholders To Equalize Prior Wrongful Payment To Preferred Shareholders, Theodore Sachs S.Ed.

Michigan Law Review

As a general proposition, payment of dividends may be made only out of surplus and not out of the capital stock of a corporation. Though the cases evidence considerable confusion as to the meaning of "surplus" and "capital," it is clear that these terms do not indicate a res. Rather, they are convenient designations for legislatively prescribed limits as to when dividend payments are proper. The capital stock rule, that the aggregate consideration received for no par stock plus the aggregate value of issued par stock may not be tapped for shareholder distribution, is founded, loosely speaking, on the notion …

Probate-Recent Statutes-"Streamlining'' The Administration Of Small Estates, Joseph Gricar S.Ed.

Michigan Law Review

One by-product of the research leading to the drafting of the Model Probate Code is a monograph by Professor Paul E. Basye which contains a complete survey of the statutes which simplify or eliminate the regular administration of estates. One portion of the monograph is devoted to statutes which provide methods for the administration of small estates. Since the publication of the monograph, there have been a number of statutes enacted which continue· the trend toward a "streamlined" administration of small estates; with these recent statutes this comment is concerned. Statutes which simplify or eliminate administration but which are not …

Restitution-Constructive Trust On Recission For Fraud Will Not Displace Lien For Repairs On Vessel, William H. Yager

Michigan Law Review

The Maryland Dry Dock Company sued to enforce its statutory maritime lien for converting a cargo vessel owned by the Republic Steamship Corporation into a passenger ship, and the International Refugee Organization contested the action on the ground that the money used to purchase the vessel was obtained by Republic from IRO by fraud. IRO argued that Republic did not have authority to bind the vessel because the vessel was impressed with a constructive trust in IRO's favor, and that if Republic did have authority the trust took preference over the lien. Held, a constructive trust on rescission for …

Wills-Pretermitted Heir Statutes-Need To State Parent-Child Relationship In The Will., Nancy J. Ringland S.Ed.

Michigan Law Review

Plaintiff alleged that she was an adopted daughter of testator, and, by reason thereof, claimed to be a pretermitted heir, under a statute providing that if any person make his last will and die, leaving a child not named or provided for in such will, testator in so far as regards such child shall be deemed to die intestate, and such child shall be entitled to such proportion of the estate of the testator as if he had died intestate. Plaintiff's claim was based on two provisions in the will. In the first, the testator declared that he had had …

Monthly Periodical Index, Michigan Law Review

Michigan Law Review

This department lists the articles and comments which appear in leading law reviews. The index embraces material published since the last issue of this REVIEW.

Judgments - Double Jeopardy - Res Judicata - Effect Of Prior Conviction Or Acquittal On Subsequent Suit For Statutory Penalty Or Forfeiture, Edward W. Rothe S.Ed.

Michigan Law Review

The case of United States v. One De Soto Sedan has again focused attention on some of the perplexing problems raised by the statutory imposition of both criminal and civil sanctions for the same wrongful act. The court held that an acquittal in a criminal prosecution for possessing liquor on which no federal tax had been paid was a bar to a civil in rem proceeding to forfeit claimant's car as having been used in the removal, deposit and concealment of the same liquor with intent to defraud the United States of taxes. Since the two proceedings involved the same …

Contracts-Measure Of Damages-Life Insurance Contract, Howard Van Antwerp

Michigan Law Review

When the plaintiff was expelled from defendant Brotherhood an insurance policy issued to the plaintiff by the defendant was canceled and the cash surrender value paid to him in accordance with the terms of his policy. The directors of the Brotherhood later decided that this expulsion had been wrongful, whereupon the plaintiff returned the cash surrender value of the policy and demanded the return of all premiums paid. When this demand was refused, the plaintiff sued to recover damages for wrongful cancellation of his policy. The trial court instructed the jury to return a verdict for the premiums paid with …

International Law-Jurisdiction-Application Of United States Seaman's Laws To Foreign Seamen On Foreign Vessels, Philip Smullin

Michigan Law Review

Libelants, eleven Greek seamen, signed a contract in the United States for a voyage from this country to Spain on a Greek vessel. They were discharged when the ship reached Barcelona. The shipowners made advance payments to these seamen, as they had in the past, and deducted such payments when settlements were made in the United States at the end of the voyage, a practice contrary to a federal statute. Prior to libelants' return to the United States from Spain, where they had been properly discharged, suit was instituted in their behalf for wages. Respondents paid into court a sum …

Jurisprudence-Stare Decisis - Varying Force Of Precedent, Charles Myneder S.Ed.

Michigan Law Review

Plaintiff passenger brought an action against defendant driver to recover for injuries arising from the latter's negligence in operating an automobile while the parties were engaged in a joint enterprise. Defendant contended that his own negligence should be imputed to the plaintiff to bar recovery. Defendant offered as authority a previous decision by the same court in which a passenger, a joint enterpriser with the driver, sued both the driver and the absentee owner of the automobile. There the court dismissed the action against both defendants on the ground of imputed negligence. But the reasoning and authority offered by the …

The Constitutional Significance Of Delegated Legislation In England, J. A. G. Griffith

Michigan Law Review

The Committee on Ministers' Powers defined delegated legislation as the "exercise by a subordinate authority, such as a Minister, of the legislative power delegated to him by Parliament." This definition followed logically from the terms of reference which required the Committee to report "what safeguards are desirable or necessary to secure the constitutional principles of the sovereignty of Parliament and the supremacy of the Law."' Behind these two statements lie certain assumptions which coloured the Report of the Committee and influenced its recommendations. One of these assumptions is that Ministers of the Crown are "subordinate" to Parliament so that any …

Corporations-Right Of Directors To Enforce At Face Value Claims Against The Corporation Purchased At A Discount During Insolvency, Robert H. Frick S.Ed.

Michigan Law Review

From 1942 to the initiation of bankruptcy proceedings the assets of the debtor corporation were insufficient to pay its liabilities, and, with the exception of 1945, it operated at a deficit. In 1946 the assets of the corporation were sold, and the debtor filed a petition under Chapter XI of the Bankruptcy Act Prior to the filing of the petition, but during the period of insolvency, the respondents, the sister, mother, and a personal friend of a director, acquired debenture bonds of the corporation, primarily from over-the-counter dealers, at 3% to 14% of face value, the aggregate cost being $10,000. …

Criminal Law-Proof Of The Corpus Delicti By The Use Of Extra-Judicial Confessions, Theodore Sachs

Michigan Law Review

Defendant, a physician, was accused of the murder of his cancer-ridden patient by the injection of 40 c.c. of air into a vein of the patient's arm shortly before her death. The defendant had noted on the patient's medical chart the fact of the injection and that of her death, apparently a few minutes later. He subsequently dictated the same facts to his nurse, and later made similar admissions to local enforcement authorities and others making such statements on the day of his arrest and immediately thereafter. At the trial, a pathologist, called as an expert witness on behalf of …

Judgments-Setting Aside-Failure Of "Local Agent" To Notify Corporation Of Service Of Summons, Lloyd J. Tyler, Jr.

Michigan Law Review

Service of summons was made upon a ticket agent employed by a lessee of the defendant coach line in accordance with a North Carolina statute which provides that any person receiving or collecting money within the state for a corporation is a ''local agent" for the purpose of service of process. This agent did not notify the defendant corporation of the summons, and a default judgment was entered. On appeal it was held that the judgment should not be set aside for want of service of summons, since the ticket agent was within the statutory definition of ''local agent." The …

Taxation--Income Tax-Effect Of Loss Carry--Back On Deficiency Assessment Interest Charges, William R. Worth S.Ed.

Michigan Law Review

In 1943 the Commissioner of Internal Revenue assessed deficiencies against respondent taxpayer in its 1941 income and excess profits taxes, adding interest from the date the tax was properly due to the assessment date. The taxpayer suffered a net operating loss in 1943 sufficient to abate completely all tax liability for 1941. When application for a refund of the amount paid and abatement of the deficiency was made, however, the commissioner deducted the interest assessed from the amount to be returned, claiming that the liability to pay interest on the deficiency was still outstanding. The district court held for the …

Trusts-Resulting Trust In Registered Automobile, William P. Sutter S.Ed.

Michigan Law Review

Suit was brought by plaintiff against the administrator of the estate of X to establish title to an automobile which plaintiff alleged had been purchased with funds furnished by her. Title was in the name of deceased, X, in whose name plaintiff claimed to have registered the car because she did not drive and X would do most of the driving. The sole heir of X was permitted to intervene as a party defendant and claimed that lawful ownership had been in X. Decree was for defendants and it was directed that the car be turned over to …

State Taxation Of Interstate Commerce--What Now?, Robert C. Brown

Michigan Law Review

Perennial indeed have been the problems of state taxation affecting interstate commerce and the problems of intergovernmental taxation as between state and federal governments. The two problems are quite similar except that the intergovernmental problem is mutual while the interstate problem affects only state taxing power. But both are alike in that the restrictions on the taxing power are entirely judicial, and that while some restrictions are desirable they must themselves be limited lest we have not regulation but destruction of taxing power.

The intergovernmental problem is virtually settled with the allowance of non-discriminatory taxation on both sides, except as …

Restitution Under The Statute Of Frauds: What Constitutes An Unjust Retention, Lindsey R. Jeanblanc

Michigan Law Review

In order to recover in restitution the plaintiff must establish, first, that a legal benefit was conferred upon the defendant and, second, that the retention of that benefit was unjust. The problem of determining what constitutes a legal benefit in the cases of restitution under the statute of frauds is discussed in another article. The purpose of this article is to examine what does or does not constitute an unjust retention in such cases, including some of the grounds on which the defendant may successfully contend that his retention of a benefit is not unjust.