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Taxation-Federal Income Tax-Automobile Received As Prize In Sales Agency Drawing Not Income, Arthur M. Wisehart S.Ed.

Michigan Law Review

An automobile agency, as a means of publicizing its new models, advertised that it would give a new car to one of the persons visiting its showroom on a certain day. When plaintiff visited the showroom on the day specified, an employee of the agency took her name, wrote it on a slip of paper, and deposited it in a barrel. Plaintiff's name was drawn from the barrel and she received the automobile. Plaintiff did not include the value of the prize in computing her gross income for tax purposes, and a deficiency was assessed against her. Unsuccessful in her …

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.

Evidence-Hearsay-Admissibility Of Public Opinion Polls, John C. Hall S.Ed.

Michigan Law Review

The Florida Supreme Court sustained the conviction of Irvin, a Negro, on a charge of rape, but the Supreme Court of the United States reversed and remanded the case. Defendant was granted a change of venue to Marion County, where he requested a second change of venue, claiming that the notoriety of his case had made him personally odious to the residents of Marion County. He attempted to introduce the results of a public opinion poll made by the Elmo Roper Research and Public Opinion Organization to support his claim. The field supervisor and the tabulator were called to testify …

Future Interests-Powers-Legal Consequences Of A Life Estate With A Power Of Disposition Under The New York Type Powers Statute, Richard W. Young S.Ed.

Michigan Law Review

Testatrix devised certain property to her husband "to be used and enjoyed by him with the right to sell and dispose of same and use so much thereof, either principal or income, as he may desire during his lifetime.'' Any property or the proceeds thereof remaining at his death was to be distributed equally to named takers, children of the testatrix. Successors of the remaindermen brought an action for ejectment and to quiet title against persons claiming under conveyances from the life tenant, the plaintiffs contending that these conveyances were made without consideration and could not operate to cut off …

Constitutional Law-Equal Protection-Racial Restrictive Covenant In Deed Of Cemetery Lot As Defense To Damage Action, Lawrence N. Ravick

Michigan Law Review

Plaintiff brought a damage action against a private cemetery for its refusal to permit the interment of her Indian husband in a burial lot which she had purchased from the defendant cemetery under a contract restricting burial privileges to members of the Caucasian race. Held, reliance upon a restrictive covenant to deny recovery does not constitute state action in violation of the equal protection clause of the Fourteenth Amendment of the Federal Constitution. Rice v. Sioux City Memorial Park Cemetery, (Iowa 1953) 60 N.W. (2d) 110.

Federal Procedure-Limitation Of Actions-Suspension Of Statute Of Limitations As To Citizen Of Enemy-Occupied Territory In War Time, Stephen J. Martin S.Ed.

Michigan Law Review

Plaintiff, a Filipino, loaned money to a recognized guerilla unit in the Philippine Islands in 1943, during the period of the Japanese occupation of the Islands. He filed suit in the United States Court of Claims on December 31, 1952, to recover the amount of the loan. Defendant United States moved to dismiss on the ground that the claim was barred by the six-year statute of limitations applicable to the Court of Claims. Held, petition dismissed. Plaintiff's cause of action first accrued at the earliest moment when suit might have been legally instituted upon it. No circumstance in the …

Municipal Corporations-Zoning-Validity Of Ordinances Excluding Residences From Industrial Areas, Judson M. Werbelow S.Ed.

Michigan Law Review

Plaintiff purchased undeveloped land located in defendant municipality, intending to construct dwelling houses thereon. At the time of plaintiff's purchase, the land was zoned for industrial use, but the applicable ordinance did permit use of the land for residential as well as industrial purposes. Defendant municipality, a town of about 9,000 persons, had experienced a minimum of industrial growth and the possibility of future industrial development was slight. Shortly after the plaintiff had made his purchase, defendant municipality amended the applicable zoning ordinance to prohibit the use of plaintiff's land for residential purposes. However, the ordinance did permit the presence …

Real Property-Recording--Latent Defect In Acknowledgment Of Deed, Eugene Alkema

Michigan Law Review

In 1947 A executed a deed to B, which was recorded in July 1951. On May 7, 1951 A executed a deed of the same property to C, who did not record. C's deed bore a certificate of acknowledgment, but in fact the acknowledgment was taken by telephone and not in person as required by law to make it eligible for record. On May 9, 1951 C conveyed to D, who recorded both conveyances in his chain of title on May 26, 1951. In an action by B to quiet title, held, for B. Since …

Bontecou: The Federal Loyalty-Security Program, Theodore J. St. Antoine S.Ed.

Michigan Law Review

A Review of THE FEDERAL LOYALTY-SECURITY PROGRAM. By Eleanor Bontecou.

Notes, Michigan Law Review

Michigan Law Review

This department undertakes to note or review briefly current books on law and matters closely related thereto. Periodicals, court reports, and other publications that appear at frequent intervals are not included. The information given in the notes is derived from inspection of the books, publishers' literature, and the ordinary library sources.

Constitutional Law - Equal Protection - Determinable Fee As Devise To Impose Racial Restrictions On Use Of Land, Charles B. Renfrew S.Ed.

Michigan Law Review

Land was conveyed by deed to the Park and Recreation Commission, a municipal corporation. The grant was in the nature of a determinable fee, with the land to revert to the grantor if it was ever used by members of any race other than the white race. Members of the colored race petitioned the Park and Recreation Commission for permission to use the recreational facilities erected on the land conveyed and the commission then sought a declaratory judgment as to the legal effect of the possibility of reverter contained in the deed, joining the petitioners and the grantors of the …

Regulation Of Business - Robinson-Patman Act - A Further Look At Functional Discounts, Richard R. Dailey S.Ed.

Michigan Law Review

Probably no sphere of governmental regulation of business in the United States has caused more concern or created more confusion than the attempted regulation of pricing practices. This problem has arisen, in part, because of the peculiar tendencies of certain segments of the American economy toward expansion and vertical integration and, also in part, because of the adoption of ambiguous and prejudicial legislation designed as a cure-all for allegedly harmful pricing practices. In addition, the attitude of the courts and the Federal Trade Commission in this field has been far from consistent over the years, with the result that neither …

Front Matter, Michigan Law Review

Michigan Law Review

Front Matter for Volume 54, Issue 5 of Michigan Law Review

Patent Office Performance In Perspective, George E. Frost

Michigan Law Review

" the only patent that is valid is one which this Court has not been able to get its hands on."

Justice Jackson's note of despair reflects all too accurately the treatment patents have seemingly received in the hands of the courts since the "new trend" of recent years. It has become the legal fashion to characterize letters patent as something the Patent Office issues and the courts strike down. Statistical support for this conclusion can be readily assembled.

Securities - Effect Of Certificate Of Title Acts Of Sales On Encumberd Vehicles To Purchasers In Ordinary Course, Charles G. Williamson, Jr. S.Ed.

Michigan Law Review

The primary purpose of this comment will be to examine the various legislative schemes in use and the bearing of the certificate of title acts on the case of mortgagee v. purchaser in ordinary course.

Conflict Of Laws - Brokerage Contracts - Out-Of-State Broker Denied Commission Because Of Isolated Acts Within Forum, Richard J. Riordan S.Ed.

Michigan Law Review

Plaintiff was a Massachusetts real estate broker, not licensed to do business in New York. Defendants, who resided in New York, owned real estate in Massachusetts and executed a brokerage contract there with the plaintiff. The real estate was leased to a Massachusetts corporation through plaintiff's efforts. All of plaintiff's services, with the exception of several important conferences in New York, were performed in Massachusetts. On plaintiff's suit for unpaid commissions, held, for defendant. The New York brokerage laws prohibit recovery in a New York court by brokers, unlicensed in New York, who perform any brokerage services within the …

Constitutional Law - Civil Rights Acts - Civil Liability Of State Officials Acting Withing Their Discretionary Powers, Charles B. Renfrew S.Ed.

Michigan Law Review

Plaintiff was adjudged mentally ill by a county probate judge and ordered committed to a state mental hospital in November 1950. The commitment was made pursuant to a petition made out by the county deputy sheriff on the recommendation of a local attorney. In August of 1952, plaintiff was released from the state mental hospital. He then filed an action in the county circuit court to test the validity of his commitment. The circuit court found that the commitment was void, because of a failure by the authorities to comply with the applicable statutory requirements, and granted a permanent injunction …

Corporations - Political Activities - Interpretation Of Statute Prohibiting Political Contributions By Corporation, George Kircos

Michigan Law Review

Defendant corporation, organized to promote the recall of Senator Joseph R. McCarthy, was charged with violating section 346.12 of the Wisconsin statutes, which prohibits corporations doing business in Wisconsin from paying or contributing any money, etc., to promote or defeat the candidacy of any person for nomination, appointment, or election to any political office. The trial court entered a forfeiture judgment against the defendant. On appeal, held, reversed. The statutory phrase "doing business" was intended to limit the scope of the prohibition to corporations organized for profit. Corporations, such as the defendant, organized solely for political purposes are not …

Corporations - Shareholders - Use Of Corporate Funds For Proxy Contest Expenses, Julius B. Poppinga S.Ed.

Michigan Law Review

Following a proxy contest in which the insurgent faction of stockholders was successful, the new board of directors paid out $28,000 to members of the old board to cover expenses incurred by them, and also used $127,000 to reimburse the prevailing group. The latter expenditure was approved by a sixteen-to-one majority vote of the stockholders. Plaintiff brought a derivative action seeking restoration of both amounts. The trial court dismissed the complaint, and the appellate division affirmed this judgment. On appeal to the New York Court of Appeals, held, affirmed, three judges dissenting. Corporate directors may make reasonable expenditures in …

Criminal Law - Trial - Duty Of Judge To Instruct On Lesser And Included Crimes, Paul A. Heinen S.Ed.

Michigan Law Review

Appellant was one of four defendants who were charged in three separate counts of an indictment with the crimes of attempted robbery in the first degree, attempted grand larceny in the first degree, and assault in the second degree with intent to commit robbery and grand larceny. After all the evidence had been entered, the trial judge submitted only the count of attempted robbery to the jury, instructing them that they return a verdict of guilty or not guilty of that crime. The defense excepted to the court's refusal to submit the other counts charged in the indictment. The defendant …

Future Interests - Trusts - Time For Ascertainment Of Heirs After Life Estate In Trust With Unexercised Power Of Appointment And No Gift In Default, Edward A. Manuel

Michigan Law Review

The testator set up a testamentary trust for the benefit of his wife for life and gave her a general testamentary power to appoint the remainder in fee. No gift in default was provided. The life beneficiary died without exercising the power. On petition by the trustee for directions for the final distribution- of the trust property, the trial court held that the property went to those who were the heirs of the testator at the time of his death. On appeal, held, reversed, two judges dissenting. The trustees took full title to the trust property and no interest …

Regulation Of Business - Fair Trade Acts - Availability Of Injunction Against Nonsigner's Inducing Breach Of Fair Trade Agreement, William R. Jentes S.Ed.

Michigan Law Review

Plaintiff manufacturer had extensive agreements with its distributors under the Michigan Fair Trade Act. The circuit court enjoined the defendant, who was not a party to any of these contracts, from inducing the plaintiff's distributors to sell products to the defendant below the agreed fair trade price. On appeal, held, reversed, three justices dissenting. Defendant is privileged to induce the breach of a fair trade agreement which restricts his business opportunities and is contrary to the state's policy against the enforcement of the nonsigner provision of its fair trade law. Argus Cameras, Inc. v. Hall of Distributors, Inc., …

Regulation Of Business - Sherman Act - Patent Pool Agreements Which Restricts Fields Of Use, Martin F. Roston S.Ed.

Michigan Law Review

DeVlieg, the owner of three major patents in the machine tool field, licensed his inventions to several machine tool manufacturers. Subsequently, he and the licensees formed a new corporation, Associated Patents, Inc., a patent holding company, to which he assigned his patents. Each party to the agreement owned an equal share of API. The agreement contained provisions for the granting back to API of any improvement patents acquired by the parties and it also restricted the use of the patents by each party to carefully circumscribed fields of use. Held, a patent pool agreement restricting fields of use is …

Restitution - Fraud - Prospective Vendee's Rights Against Broker, Stephen C. Bransdorfer S.Ed.

Michigan Law Review

Defendant was retained as a real estate agent by the vendor. He listed the vendor's eighty acres and buildings for sale. Plaintiff, a prospective purchaser, offered $7,000 for the property. Defendant failed to transmit this offer to the vendor and, instead, fraudulently caused the vendor to convey to two strawmen, as purported purchasers, for $6,500. After the defendant had falsely told the plaintiff that the latter's offer for the whole tract had been rejected, plaintiff purchased seventeen acres, including the buildings, for $6,000, an admittedly fair price. The strawmen conveyed the remaining sixty-three acres to the defendant's son, defendant giving …

Taxation - Federal Income Tax - Deductibility Of Transportation Expenses Between Two Places Of Current Employment, George E. Ewing S.Ed.

Michigan Law Review

Petitioner was employed as a high school principal by the city of Attleboro, Massachusetts, where he lived. He was also employed as an accounting instructor by Boston University, thirty-seven miles distant, two evenings a week for thirty-two weeks during the taxable year. He used his personal automobile to travel between the two cities and did not remain overnight in Boston. Neither employer expressly required him to incur any transportation expenses in connection with his teaching duties and there was no arrangement for reimbursement of transportation costs. The Tax Court affirmed the Commissioner's disallowance-- of a deduction for the automobile expenses …

Taxation - Federal Income Tax - Treatment Of Gains From Commodity Futures Transactions Of Manufacturing Consumer, Neil Flanagin S.Ed.

Michigan Law Review

Taxpayer, a manufacturer of products made from corn, purchased and sold corn futures contracts as a part of its regular buying program in order to protect itself against a possible shortage of raw materials. Taxpayer contended that the gains realized on these transactions should receive capital asset treatment. The Tax Court and the court of appeals held that the gains constituted ordinary income. On appeal, held, affirmed. The transactions, though not true hedges, were entered into for business purposes and as an integral part of taxpayer's operations. Consequently, they should be treated the same as hedges, and the gains …

Rule Against Perpetuities - Recent Legislation In Massachusetts, Maine And Connecticut, David W. Swanson S.Ed.

Michigan Law Review

Three very significant statutes dealing with the rule against perpetuities and containing identical language in their important provisions have recently been passed in Massachusetts, Maine, and Connecticut. There are three basic provisions. (1) In applying the rule against perpetuities to an interest limited to take effect at or after the termination of one or more life estates in, or lives of, persons in being when the period of the rule begins to run, the validity of the interest shall be determined on the basis of the facts existing at the termination of the life estates or lives. (2) If any …

Corwin: The "Higher Law" Background Of American Constitutional Law, Charles M. Whelan S.J.

Michigan Law Review

A Review of The "Higher Law" Background of American Constitutional Law. By Edward S. Corwin.

Baker: Law Of Disputed And Forged Documents, Maurice A. Nernberg

Michigan Law Review

A Review of Law of Disputed and Forged Documents. By J. Newton Baker.

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.