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Michigan Law Review

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Retail Responsibility And Judicial Law Making, John Barker Waite Feb 1936

Retail Responsibility And Judicial Law Making, John Barker Waite

Michigan Law Review

When the corner grocer sells a can of beans and a peck of fresh spinach, does he make himself responsible for the contents of the can, or acquire liability because of a green worm buried deep in the leaves?


Future Interests - Effect Of Eminent Domain Proceedings Feb 1936

Future Interests - Effect Of Eminent Domain Proceedings

Michigan Law Review

This study is concerned with the effect of condemnation proceedings upon future interests. The problems which arise are chiefly whether the owner of a future interest has such an interest in land as to be awarded a share of the fund given as compensation for the land, and if he does have such an interest as to be awarded a share, how it will be determined or apportioned to him and at what time. The first part of the study is a consideration of the question: what types of future interests are compensable? The second part involves an examination of …


Sales - Status Of Title-Retaining Instruments As Against Third Persons Feb 1936

Sales - Status Of Title-Retaining Instruments As Against Third Persons

Michigan Law Review

The exploitation of the legal concept of divided property interests in chattels by ingenious draftsman-lawyers has resulted in the variety of title-retaining instruments commonly used today in the creation of vendor-vendee relationships. Among the more familiar forms may be mentioned the conditional sale, bailment lease, chattel mortgage, and trust receipt. The chief motive of the seller in resorting to these devices seems to lie in the belief that the buyer is a poor credit risk, and the particular instrument which a seller will employ in a given situation will depend largely upon the relative legal advantages which he seeks to …


Trusts - Duration Of An Indestructible Trust Feb 1936

Trusts - Duration Of An Indestructible Trust

Michigan Law Review

The celebrated case of Claflin v. Claflin left in its wake a number of novel legal problems, some of which have been at best only partially resolved. One of the most perplexing is that of the duration of the so-called "indestructible trust." Once such an "indestructible trust" is created, how long may it be permitted to endure? If an attempt is made to attain excessive duration, what penalty attaches? What disposition will be made of the legal and equitable estates?


Corporations-Disregard Of Separate Entities-Subsidiary Corporation An Instrumentality Of The Parent Feb 1936

Corporations-Disregard Of Separate Entities-Subsidiary Corporation An Instrumentality Of The Parent

Michigan Law Review

Defendant corporation had an excess of assets over liabilities, but its ratio of current assets to current liabilities had declined below the then normal banking credit requirement of two to one. In order to avoid acknowledgment of commercial insolvency due to inability to meet obligations maturing in the near future, defendant organized a subsidiary corporation to take over the sales end of the enterprise, transferring to the subsidiary sufficient current assets to give it the required banking ratio with regard to the liabilities assumed by the subsidiary consisting of bank obligations and some of the current bills payable of the …


Equity-Patent Infringement-Advantages Of Declaratory Judgment Over Injuction Relief Feb 1936

Equity-Patent Infringement-Advantages Of Declaratory Judgment Over Injuction Relief

Michigan Law Review

Defendant had patented a certain seam used in garment-making and also the means for manufacturing it. Plaintiff claimed that this patent was void because anticipated by his own practice. Under this claim plaintiff continued to manufacture the type of seam in question and to sell garments in which it was used. Defendant thereupon sent notices both to plaintiff and to his customers threatening suit for infringement. Plaintiff sought a decree under the Declaratory Judgment Act to determine whether the patent was valid. Defendant moved to dismiss the action. Held, motion denied; a declaratory judgment is an appropriate proceeding for …


Municipal Corporations-Standards Required In Licensing Ordinances Feb 1936

Municipal Corporations-Standards Required In Licensing Ordinances

Michigan Law Review

Defendant appealed from conviction for operating a used auto business without obtaining a license for such business under a city ordinance requiring same to be granted by the city commission if in its opinion applicant was a proper and suitable person, the place to be used was proper, having in mind the nature and character of the business and possibility of commission of crime, and the sanitary facilities thereon were proper. There was no specific legislative grant for passage of such ordinance. Defendant's application was rejected by the commission mainly because of lack of proper sanitary facilities. Held, standards …


Trade-Marks--Unfair Competition--Right Of Exclusive Selling Agent Feb 1936

Trade-Marks--Unfair Competition--Right Of Exclusive Selling Agent

Michigan Law Review

Plaintiff corporation is a retailer and importer of denture -blanks and is the exclusive American selling agent of the German company which makes them. The blanks are stamped with the trade-mark '"Heckolith," which is registered by the German maker in Germany and in the United States. The plaintiff, after putting the blanks through a secret aging process, places them on the market in distinctive boxes, which it marks with the word, "Hecolite," the Anglicized form of the German trade-mark. The plaintiff registered the mark "Hecolite" as his own, and also the mark "Heckolith," after a purported assignment of the mark …


Trusts-Effect Of Gift To Executor For "Charity And Other Worthy Objects" Feb 1936

Trusts-Effect Of Gift To Executor For "Charity And Other Worthy Objects"

Michigan Law Review

A testator directed his executor to sell all his assets within five years and to distribute the proceeds to "such charities and worthy objects" as the executor and the testator's sister should determine, "remembering . . . the City of Fort Worth . . . , the City of Vancouver . . . , Parker County, in Texas, and England, places to which I have become attached." The executor proceeded to administer the estate and gave some of it to the Methodist Episcopal Bishop of Texas for the use of his church. The attorney general of Texas then filed a …


Book Notes, Michigan Law Review Feb 1936

Book Notes, Michigan Law Review

Michigan Law Review

This department undertakes to list and, when possible, describe briefly current books on law and matters closely related thereto.


Eminent Domain-Validity Of State Statute Jan 1936

Eminent Domain-Validity Of State Statute

Michigan Law Review

As upon certiorari, the New Mexico Supreme Court considered the question, whether it is "within legislative competence to declare a public use in the industry of coal mining, so as to permit taking private property in aid of it." Plaintiff had obtained a judgment of condemnation, and defendant attacked it as offensive to the New Mexico constitutional provision: "Private property shall not be taken or damaged for public use without just compensation." The opinion recognized the existence of an "orthodox" and a "liberal" doctrine of construing "public use." While the court found that, unlike Nevada's or Utah's, New Mexico's well-being …


Statutes-Approval Of Public Works Projects Under Nira Jan 1936

Statutes-Approval Of Public Works Projects Under Nira

Michigan Law Review

Acting under approval and order of the Federal Emergency Public Works Administrator, the United States commenced construction of the Parker Dam across the Colorado River over the objection of the state of Arizona, which was not a party to the Colorado River Compact. Arizona interfered forcibly. A bill was brought by the United States to secure a perpetual injunction against such interference. In response to an argument by Arizona that the dam was not properly authorized, the United States attempted to justify under a recommendation of the chief of engineers as sufficient authorization under section 202 of the National Industrial …


Trade Marks-Effect Of Licensing Use Of Trade Mark By Sales Agent On Rights Of Owner Of The Mark Jan 1936

Trade Marks-Effect Of Licensing Use Of Trade Mark By Sales Agent On Rights Of Owner Of The Mark

Michigan Law Review

For twenty-five years plaintiff company was licensed by X manufacturing company to sell furnaces made by X in Kentucky and to use the trade-mark "Monarch" thereon along with plaintiff's name, leaving X's name off the furnace. After the termination of this license plaintiff continued to sell other furnaces with the mark "Monarch" affixed thereto. Four years later X licensed defendant company to sell X's furnaces in Kentucky and to use the mark "Monarch" on the same. Plaintiff brought suit to enjoin defendant's use of said. mark on furnaces sold in Kentucky. Held, licensing use of mark by X to …


Constitutional Law-Due Process-Fair Trade Acts Jan 1936

Constitutional Law-Due Process-Fair Trade Acts

Michigan Law Review

The recent decision of the New York Court of Appeals in Doubleday, Doran & Co. v. R. H. Macy & Co., holding unconstitutional section two of the New York Fair Trade Act, presents another interesting aspect of the long struggle by manufacturers of widely known trade-marked articles to secure some adequate protection for themselves and the public against the destructive practice of retail price cutting.


Corporations-Voting Trusts-Public Policy Jan 1936

Corporations-Voting Trusts-Public Policy

Michigan Law Review

Owning practically all the stock in two corporations, the decedent by will divided his holdings equally among his six children. To perpetuate the control of two sons who had been in active management for ten or twelve years, the other children transferred their stock in trust to the two sons to hold during the lives of these two or the life of the survivor, to vote, and to collect and pay over dividends. In an action by beneficiaries representing one-third of the stock to have the trust instruments declared void, the court held that the trust was not against public …


Evidence - Witnesses - Privilege Of Reporter Not To Testify Concerning Confidential Communications Jan 1936

Evidence - Witnesses - Privilege Of Reporter Not To Testify Concerning Confidential Communications

Michigan Law Review

Defendant, a newspaper reporter, refused to reveal to a grand jury which was investigating gambling and the lottery racket the names and addresses of persons and places mentioned in certain newspaper articles he had written on that subject, on the ground that the information was given to him confidentially and its source was therefore privileged. He was committed for contempt, and sued out a writ of habeas corpus. Held, writ dismissed. Mooney v. Sheriff, 269 N. Y. 291, 199 N. E. 415 (1936).


Unfair Trade-Radio Broadcast Of News Items From Papers Published By Members Of News Service Association As "Unfair Competition" Jan 1936

Unfair Trade-Radio Broadcast Of News Items From Papers Published By Members Of News Service Association As "Unfair Competition"

Michigan Law Review

Defendant radio station broadcast daily a "Newspaper of the Air" program on which it read news items from newspapers published by members of plaintiff association. Plaintiff alleges that defendant is using the results of plaintiff's labor and investment, without paying for it, to aid it in competition with plaintiff's members for advertising, and seeks to have such use of its news enjoined as "unfair competition." Held, defendant should be enjoined from "unfair competition," consisting of the appropriation and broadcast of news gathered by plaintiff while such broadcasts might damage the business of plaintiff's members. Associated Press v. KVOS, Inc. …


Front Matter, Michigan Law Review Jan 1936

Front Matter, Michigan Law Review

Michigan Law Review

Front Matter for Volume 43, Issue 3 of Michigan Law Review


Fees And Expenses In A Corporate Reorganization Under Section 77b, George F. Medill Jan 1936

Fees And Expenses In A Corporate Reorganization Under Section 77b, George F. Medill

Michigan Law Review

A District Court of the United States in a proceeding under Section 77B of the Bankruptcy Act has substantially all the powers of a court of equity. All that follows may be summarized by saying that allowances of compensation for services and reimbursement for expenses are to be made by the court according to the principles and practices of equity applied to the accomplishment of the purposes of the Section and the object of the proceeding-a fair and equitable plan of reorganization. The Section, so far as it provides for or regulates allowances, is no more than a statutory restatement …


Constitutional Law-Agricultural Adjustment Act-The General Welfare Clause And The Tenth Amendment Jan 1936

Constitutional Law-Agricultural Adjustment Act-The General Welfare Clause And The Tenth Amendment

Michigan Law Review

In what is without question the most important decision rendered in recent years the Supreme Court of the United States has swept away the legal basis of the Agricultural Adjustment Administration. The processing tax, an essential part of a plan for the control of production, has been ruled unconstitutional as involving an invasion of the powers reserved to the states. Unlike the case of Schechter Poultry Corporation v. United States, in which the National Industrial Recovery Act was held invalid by a unanimous Court, this pillar of the New Deal's vast recovery program was destroyed by a six-to-three decision, …


Banks And Banking-Constitutional Validity Of Statutes Allowing Reorganization Of Insolvent Bank Jan 1936

Banks And Banking-Constitutional Validity Of Statutes Allowing Reorganization Of Insolvent Bank

Michigan Law Review

A statute of Mississippi permitted the reopening of a closed bank, for the purpose of paying off creditors, upon terms proposed by three-fourths of the bank's creditors. The statute required that the proposition of the creditors be approved by the state superintendent of banks and confirmed by the court of chancery. Dissenting creditors opposed such a plan on the ground that the statute was unconstitutional because it impaired the obligation of contracts, and was contrary to the due process clause of the Federal Constitution. The court held that the statute was valid, that all it did was to change the …


Carriers - Limitation Of Liability For Negligence -True Valuation Agreement Jan 1936

Carriers - Limitation Of Liability For Negligence -True Valuation Agreement

Michigan Law Review

Approximately one-seventh of a shipment of cherries in brine was lost owing to improper stowage. Award of damages was resisted on the ground that the bills of lading provided for adjustment of claims "on the basis of the invoice value of the entire shipment adding expenses necessarily incurred," and that because of favorable market conditions existing at destination the entire value of the sound cherries exceeded the invoice value. Held, the quoted clause was not a genuine limitation agreement, which is valid, but a "true valuation" clause, which, since it may wholly exonerate the carrier from liability for negligence, …


Constitutional Law-Martial Law-Suspension Of The Law Jan 1936

Constitutional Law-Martial Law-Suspension Of The Law

Michigan Law Review

Fifteen thousand workmen in a county struck, forced business houses to close, cut off the milk supply even to hospitals, threatened electric and water company employees with violence, stopped all transportation services, and congregated in mobs. On request of the local authorities the governor issued a proclamation suspending the right to carry arms, the right of assembly, and the right to enter or leave the county, and directed the military to disperse all crowds, picketers, or other assemblages. A striker imprisoned by the military forces sued to enjoin the governor and military officials from carrying out the proclamation on the …


Corporations-Accommodation Guaranty-Effect Of Charter Provision Jan 1936

Corporations-Accommodation Guaranty-Effect Of Charter Provision

Michigan Law Review

The articles of the complainant business corporation authorized it "to guarantee interest, dividends, or other returns to the holders of securities or other obligations of other persons or companies in cases wherein it shall be advantageous to this company to do so." The corporation pledged to the defendant bank some of its bonds held in its treasury to secure the previously incurred personal indebtedness of its treasurer. In affirming a decree adjudging that the corporation was complete owner of the bonds, that the bank had no interest therein, and that the guaranty-pledge was ultra vires, the court held, that …


Municipal Corporations-Regulation Of Gas Stations-Delegation To Property Owners Of Power To Modify Zoning Restrictions Jan 1936

Municipal Corporations-Regulation Of Gas Stations-Delegation To Property Owners Of Power To Modify Zoning Restrictions

Michigan Law Review

A city ordinance prohibited the installation of gasoline filling stations within the city except after obtaining the written consent of 51 per cent of the property owners within a radius of six hundred feet from the site. Relator, without obtaining the required consent, asked for a writ of mandamus, which was refused. The court held the regulation not arbitrary but substantially relating to the public safety and welfare, and not a delegation of legislative powers. State ex rel. Standard Oil Co. v. Combs, 129 Ohio St. 251, 194 N. E. 875 (1935).


Patents - Infringement - Estoppel Based On Prior Interference Proceedings Jan 1936

Patents - Infringement - Estoppel Based On Prior Interference Proceedings

Michigan Law Review

The defendant was sued for infringement of certain basic process patents held by plaintiff corporation covering the recording of sound upon motion picture film. The defendant had applied for a patent for substantially this invention, but had lost in interference proceedings declared between him and the plaintiff here, who had also applied at about the same time. Because of these acts of applying and contesting interference proceedings, plaintiff here claimed that defendant was now estopped to set up in defense to this suit the non-patentable nature of the invention. Held, that the patent was invalid for anticipation and that …


Search And Seizure - Burden Of Proving Illegality Of Search For Purpose Of Suppressing Evidence Jan 1936

Search And Seizure - Burden Of Proving Illegality Of Search For Purpose Of Suppressing Evidence

Michigan Law Review

Defendant was charged with unlawful possession of five mink skins during the closed season. His motion made before trial to suppress the evidence because of unlawful seizure was denied. He was convicted, and now appeals assigning the refusal to suppress the evidence as error. Held, judgment affirmed. The court said, "Upon a motion to suppress evidence because of an unlawful seizure, the burden of establishing that his rights have been transgressed is upon the party asserting such transgression." State v. Drew, 217 Wis. 216, 257 N. W. 681 (1934).


Book Notes, Michigan Law Review Jan 1936

Book Notes, Michigan Law Review

Michigan Law Review

This department undertakes to list and, when possible, describe briefly current books on law and matters closely related thereto.


Evidence -Admissibility Of Statements Of Fact Made During Negotiation For Compromise, John E. Tracy Jan 1936

Evidence -Admissibility Of Statements Of Fact Made During Negotiation For Compromise, John E. Tracy

Michigan Law Review

At present, the various jurisdictions hold with comparative uniformity that while offers to settle a dispute are not admissible in evidence, statements of independent fact made during such compromise negotiation are admissible. The routes of logic by which the courts arrive at this similarity in result are marked by some fundamental differences, as will be shown later, but the result is the same under any theory. The question therefore presents itself, whether the distinction made by the courts between the admissibility of offers to compromise and statements of fact made during compromise negotiations can be justified under a system of …


Constitutional Law-National Power Over Navigable Streams - Property Clause - Corporations - Stockholders' Suit Jan 1936

Constitutional Law-National Power Over Navigable Streams - Property Clause - Corporations - Stockholders' Suit

Michigan Law Review

The recent decision of the Supreme Court in the TVA case raises issues of extreme importance not only in regard to the interpretation of the property clause of the federal Constitution, but also in regard to the requisites for a suit by minority stockholders of a corporation questioning the actions of the corporate management.