Digital Commons Network^™

Taxation - Federal Income Tax - Contract Right Income To Cash Method Taxpayer Who Refused Cash Offer, Eldon Olson

Michigan Law Review

During 1951 petitioner, a cash method taxpayer, executed a mineral lease. As part of the consideration petitioner was to receive an unconditional bonus or advance royalty of fixed amount. The lessee was ready, able and willing to pay the entire amount on execution, but at petitioner's request the contract provided for a small payment on execution with one-half the balance due on January 5th of each of the next two years. About one month before each due date the contract rights were discounted at a bank of which petitioner was a director. The lessee remained ready, able and willing to …

Bills And Notes - Acceptance - Payment By Drawee Of Raised Check Precludes Recovery Under Section 62 Of The Uniform Negotiable Instruments Law, Louis A. Kwiker

Michigan Law Review

Defendant, collection bank and presenter, paid the face amount of a raised check, executed its unqualified indorsement thereon, transmitted the check through regular banking channels, and received payment from drawee bank. Upon discovery of the overpayment plaintiff, surety, reimbursed the drawee and sought recovery from the defendant. The trial court sustained defendant's demurrer. On appeal, held, affirmed. Under section 621 of the Uniform Negotiable Instruments Law, a drawee bank which pays a raised but otherwise genuine check to a non-negligent holder in due course cannot recover the amount by which the instrument was raised because payment constitutes an acceptance …

Front Matter, Michigan Law Review

Michigan Law Review

Front Matter for Volume 58, Issue 3 of Michigan Law Review

Legislation - Survey And Analysis Of Criminal And Tort Aspects Of Shoplifting Statutes, Wilbur J. Markstrom S.Ed.

Michigan Law Review

Shoplifting not only results in heavy financial losses for the merchant but also poses special problems in criminal law and general law enforcement. One such problem arises from the fact that most such thefts involve relatively small amounts, with the result that the public does not seem extremely concerned about the matter when an individual case comes up for prosecution. Another peculiar difficulty is that perhaps more than any other single crime shoplifting is an offense committed by amateurs, both adult and juvenile. This serves to make both detection and prosecution difficult. Finally, the right of the individual to be …

The Duty Of Military Defense Counsel To An Accused, Alfred Avins

Michigan Law Review

This article is designed to study the manner in which those Canons of Professional Ethics have been assimilated into the administration of military justice and made the standards for the duty of a military defense counsel.

Constitutional Law - Congressional Investigation Of Political Activity-Watkins V. United States Re-Examined, Avrum M. Gross S.Ed.

Michigan Law Review

It is the function of this comment to examine the traditional scope and limitations of congressional investigations, with particular emphasis on these two cases.

Banks And Banking - Bank's Right Of Set-Off-Deposit Of Funds By A Fiduciary, James Blanchard

Michigan Law Review

Plaintiff employed A as agent to sell plaintiff's tractor. A was to keep any amount received over $5,000. A sold the tractor, receiving a $6,120 check from the purchaser payable to A. A deposited the check in his personal checking account in defendant bank. Defendant took the deposit without knowledge of plaintiff's interests and applied it against a past due obligation of A. Plaintiff brought suit for $4,500, the amount of checks from A to plaintiff which defendant refused to pay. The trial court held for defendant. On writ of error, held, reversed, two judges dissenting. No equity …

Constitutional Law- Civil Rights - Union Use Of Dues For Political Action, Paul Hanke

Michigan Law Review

Defendant unions under the authority of section 2, Eleventh of the Railway Labor Act obtained union shop agreements from defendant railroads. Non-union employees sought to enjoin enforcement of the agreements because the unions used periodic dues, fees, and assessments to support political doctrines and candidates opposed by plaintiffs. The trial court dismissed for failure to state a cause of action, but the Supreme Court of Georgia overruled the dismissal and remanded. The lower court then ruled that petitioners were denied constitutional liberties and issued the injunction. On appeal, held, affirmed. Enforcement of union shop contracts requiring employees to pay …

Administrative Law - Workmen's Compensation Proceedings - Use Of Lay Representatives, Stanley A. Williams S.Ed.

Michigan Law Review

The West Virginia Bar Association sued to enjoin the defendant, a layman, from representing claimants before the State Compensation Commission. Lay representation was authorized by the commission under its power to make rules of procedure. The injunction was granted by the circuit court. On appeal, held, affirmed. Neither the legislature nor the commission can authorize a layman to represent claimants before an administrative agency, since this would encroach upon the judiciary's inherent power to control the practice of law. West Virginia State Bar v. Earley, (W. Va. 1959) 109 S.E. (2d) 420.

Federal Procedure - Trial Practice - Right To Jury Trial On Common Question Of Law And Fact, Cecil R. Mellin

Michigan Law Review

Fox West Coast Theatres instituted an action for declaratory judgment and injunctive relief against petitioner, Beacon Theatres, to determine the reasonableness of motion picture distribution clearance agreements to which it was a party and to enjoin petitioner, pending final decision, from instituting or threatening antitrust suits against Fox or its distributors. Petitioners filed a counterclaim for treble damages, alleging that Fox and its distributors were engaged in a conspiracy in violation of the antitrust laws. Petitioner demanded jury trial of the fact questions in the complaint and counterclaim, since both raised the issues of competition between the theatres and reasonableness …

Federal And International Proceedings - United States Acceptance Of International Court Of Justice Compulsory Jurisdiction, Robert Jillson

Michigan Law Review

In October 1957 Switzerland, on behalf of the holding company now commonly known as Interhandel, addressed an application against the United States to the International Court of Justice (I.C.J.). Claiming I.C.J. jurisdiction by reason of the United States adherence to article 36 (2) of the Statute of the Court, Switzerland's submissions were essentially that the United States was under an obligation (1) to restore to Interhandel assets of the General Aniline and Film Corp which had been seized in 1942 pursuant to the Trading with the Enemy Act, and, as an alternative, (2) to submit the dispute to arbitration. The …

Labor Law - Appropriate Bargaining Unit Under Section 9(B) Of The Taft-Hartley Act- Determination Requires Nlrb To Exercise Discretion, James N. Adler

Michigan Law Review

Petitioner union sought to represent maintenance and construction electricians employed by plate glass manufacturer at a new plant. How ever, employer and intervenor union entered into an agreement extending to the new plant an existing contract covering employees at certain of employer's other plants. At hearings upon petitioner's application to determine the "appropriate" bargaining unit under criteria established by section 9 (b) of the Taft-Hartley Act, employer and intervenor urged that the highly integrated nature of the plant and the history of plantwide bargaining at employer's other plants made a single bargaining unit covering all plant's employees the only appropriate …

Taggart: Cost Justification, Harry L. Shniderman

Michigan Law Review

A Review of Cost Justification. By Herbert F. Taggart

Self-Determination Vs. Stability Of Labor Relations: The Effect Of American Potash, Dallas L. Jones

Michigan Law Review

Very early in its history, the Board was confronted with conflicting claims by craft unions and industrial unions for the right to represent craft workers. Generally, the industrial unions sought a broad unit of production and craft workers, whereas the craft unions sought units of their particular skill. The Board's first reaction was to establish broad units where it appeared that one union had a majority throughout the plant. In doing so, the Board relied heavily upon what it considered best for collective bargaining purposes. In many cases, the Board created large units over the protests of small groups on …

Torts - Invasion Of Privacy - Conduct Of A Debt Collector, Russel A. Mcnair Jr.

Michigan Law Review

In an action for the balance due on account for merchandise purchased defendants counterclaimed for damages alleging that an agent of the plaintiff, on three separate days, went to the restaurant where the defendant-wife worked as a waitress and in a loud and degrading manner made demands that defendants pay the account. On each occasion many customers were present. Plaintiff's agent accused the defendants of being "dead beats" and of never intending to pay for the merchandise when it was purchased. The trial court sustained plaintiff's demurrer to this counterclaim. On appeal, held, reversed and remanded. Conduct of a …

Recent Books, Michigan Law Review

Michigan Law Review

A List of Books Received by Michigan Law Review

Periodical Index, Michigan Law Review

Michigan Law Review

This index includes articles, comments and some of the longer notes which have appeared in leading law reviews since the publication of the last issue of this Review.

Brown: Legal Education At Michigan. 1859-1959, Louis Quarles

Michigan Law Review

A Review of Legal Education at Michigan. 1859-1959. By Elizabeth Gaspar Brown, in consultation with William Wirt Blume

Ehrenzweig: Conflict Of Laws Part One Jurisdiction And Judgments, Charles D. Kelso

Michigan Law Review

A Review of Conflict of Laws Part One Jurisdiction and Judgments. By Albert A. Ehrenzweig

Unfair Trade Practices- Robinson-Patman Act - "Per Se" Nature Of Section 2(E), Charles R. Sharp S.Ed.

Michigan Law Review

The Federal Trade Commission, finding that a manufacturer and seller of dress patterns discriminated between competing purchasers in violation of section 2 (e) of the Clayton Act, as amended by the Robinson-Patman Act, by paying transportation costs and donating storage cabinets and monthly catalogues to its large variety store customers while charging its smaller fabric store customers for the same services and facilities, issued a cease and desist order against these practices. The commission held that neither the absence of competitive injury nor the presence of cost justification are available as defenses to section 2 (e). On petition for review, …

Front Matter, Michigan Law Review

Michigan Law Review

Front Matter for Volume 58, Issue 2 of Michigan Law Review

The Supreme Court - October 1958 Term, Bernard Schwartz

Michigan Law Review

The Supreme Court, reads a famous passage by Bryce, "feels the touch of public opinion. Opinion is stronger in America than anywhere else in the world, and judges are only men. To yield a little may be prudent, for the tree that cannot bend to the blast may be broken."

The history of the highest Court bears constant witness to the truth of Bryce's statement. Supreme Court action which has moved too far in one direction has always ultimately provoked an equivalent reaction in the opposite direction. Even an institution as august as the high tribunal cannot escape the law …

Probate And Administration On The American Frontier: A Study Of The Probate Records Of Wayne County- Northwest Territory 1796-1803; Indiana Territory 1803-1805; Michigan Territory 1805-1816, William Wirt Blume

Michigan Law Review

As late as 1815 there was only one county in Michigan Territory- Wayne County- made up of parts of the territory to which the Indian titles had been extinguished. As other counties were organized beginning in 1817, Wayne County was reduced to its present size. A law adopted July 27, 1818, provided that a probate court should be held in each county. By a proclamation dated October 2, 1818, Acting Governor Woodbridge declared it was "no longer expedient to continue the present subdivisions of this territory into districts" for probate purposes; instead, each county should be "a separate District and …

Eminent Domain - Procedure - Relation Of Judge And Jury In Michigan Condemnation Proceedings, John H. Jackson S.Ed.

Michigan Law Review

The relationship of judge to jury in Michigan condemnation proceedings presents in many ways a merger of some of the problems and questions contained in the relationship of judge to jury in civil trials, and of court to tribunal in administrative law. Theorists as well as the practicing lawyer in Michigan and some other states" may well find in the development of the Michigan condemnation proceeding an interesting example of the growth of a procedure for adjudication, in a context of cross-fire between legislative ideas and judicial interpretation of a constitutional provision.

Admiralty - Unseaworthiness - Recovery For Injuries Resulting From Condition Arising After Commencement Of The Voyage, John L. Peschel

Michigan Law Review

Plaintiff, a member of the crew of a fishing vessel, sustained injuries while disembarking when he slipped on a slimy substance on the ship railing. In an action brought against the shipowner, the seaman sought recovery on three alternative grounds: first, under the Jones Act based upon negligence; second, under general maritime law based upon the obligation of the shipowner to furnish a seaworthy vessel; third, under general maritime law for maintenance and cure. Judgment was entered pursuant to a verdict limiting the seaman to recovery for maintenance and cure. On the seaman's appeal from the adverse verdict on the …

Administrative Law - Procedure - Consideration Of Initial Rate In Natural Gas Act Sale Certification, Robert Jillson

Michigan Law Review

In a Natural Gas Act sale certification proceeding the Federal Power Commission twice refused to issue an unconditional certificate, finding public convenience and necessity unproved because the unprecedented initial contract rate was not "shown to be in the public interest." Applicants declined to present evidence of the reasonableness of the initial contract rate. A commission proposal to certify at a lower rate, with increase to the contract price after twenty-four hours of delivery but under the public protection provisions of section 4 of the act, was refused. After being informed that the applicants would not dedicate the gas to the …

Admiralty - Collision - Last Clear Chance, Erik Stapper

Michigan Law Review

The City of Calcutta anchored in the navigation channel as an emergency precaution on a foggy night. The vessel was hit by a scow in tow of the tug Brooklyn, whose navigator had observed the anchored ship for ten minutes. The scow sank and its owner sought to hold the City of Calcutta liable for failure to get underway after the fog had lifted. Held, libel dismissed. Even if the Calcutta was remiss in not moving, no liability could attach because the Brooklyn had the last clear chance of avoiding the accident. Arundel Corp. v. The City of …

Constitutional Law - Due Process - Retroactive Application Of Uniform Principal And Income Act, Thomas E. Kauper S.Ed.

Michigan Law Review

The trustee of a trust created prior to the 1957 enactment of the Uniform Principal and Income Act petitioned for instructions as to whether a stock dividend received by it subsequent to the passage of the act should be allocated to principal or income. The Uniform Act provides a rule for the treatment of stock dividends contrary to the judicial rule previously adopted in Wisconsin, and is expressly made applicable to trusts existing on its date of enactment. The county court, finding the act could not be constitutionally applied to trusts created prior to its enactment, ordered the allocation of …

Future Interests - Oil And Gas - Applicability On The Rule Against Perpetuities To Remote Future Interest Following Reserved Oil And Gas Interest, Robert B. Nelson S.Ed.

Michigan Law Review

A grantor conveyed real property to defendant reserving "all oil and gas and all minerals" in and under the land "for the period of twenty-five years... and as long thereafter as oil or gas or petroleum products" should be produced. Following this reservation, but in another clause of the deed, the grantor provided, "Subject to the reservations and conditions aforesaid, [grantor] hereby grants ... all of said real property ...to the [defendant], together with ...the reversion and reversions thereof." Some years later, the same grantor quitclaimed to the plaintiff "all oil and gas in and under" the same property. The …

Taxation - Federal Income Tax - Commission Received By Life Insurance Agent On Policies Purchased By Him Held To Be Taxable Income, Roger W. Findley S.Ed.

Michigan Law Review

Taxpayer was agent for eleven life insurance companies. From two of them he purchased policies on the lives of his business partner, three key employees, and his children. He paid the regular premiums and subsequently received standard first-year and renewal commissions. When taxpayer did not include these in his gross income, the Commissioner assessed deficiencies and was sustained by the district court, On appeal, held, affirmed. A commission received by a life insurance agent on a policy purchased by him is taxable income. Ostheimer v. United States, (3d Cir. 1959) 264 F. (2d) 789, cert. den. 80 S.Ct. …