Law Commons^™

Eec Law - Export Credits - Community Has Exclusive Power To Negotiate Export Credit Agreements: Local Cost Standard Advisory Opinion, Re The Oecd Understanding Of A Local Cost Standard, David Simon

Maryland Journal of International Law

No abstract provided.

Tax Consequences Of Shortages And Stock Purchases, William H. Baker

South Carolina Law Review

No abstract provided.

Toward A Uniform Approach To Multilevel Distributorships, Donald Daniels

University of Michigan Journal of Law Reform

The phenomenal growth and eventual collapse of the enterprises of Glenn Wesley Turner and William Penn Patrick during the 1960's should have surprised no one. They were only a recent example of an old and recurrent merchandising scheme, a variant of the chain letter device. Such operations, commonly called pyramid sales schemes, can temporarily succeed where a credulous public, willing to believe that it can get rich quickly for a small monetary investment and little or no expenditure of effort, exists in a legal system lacking a coordinated program for the prevention of such machinations. Pyramid sales schemes have been …

Prudence In Trust Investment, Thomas D. Johnston

University of Michigan Journal of Law Reform

Part I of this article presents a brief history of the prudent man standard and explores the meaning of "prudence." Part II discusses the shift in legal theory to include equities as prudent investments. Part III articulates the weaknesses in the method currently used by courts to assess investment prudence in view of the exigencies confronting today's trustee-investor. Finally, part IV shows that the same factors which justified the creation of the Prudent Man Rule and its expansion to include equities will support its modification to encompass modern investment theories and techniques.

Delegation Of Investment Powers By Charitable Trustees, Richard B. Urda Jr.

University of Michigan Journal of Law Reform

Over the past few years the activities of philanthropic organizations have been undergoing considerable critical scrutiny. Congressional committees, private commissions, and individuals have extensively analyzed institutionalized charity. An area of particular concern involves problems created by the investment policies of charitable organizations. One investment problem that has not received much attention, however, is the plight of the natural person trustee of a charitable trust who, in general, is legally prohibited from delegating his responsibility for investment of trust funds. Almost one-third of all charitable foundations take the legal form of trusts. Of the foundations organized as charitable trusts, over 60 …

Changes In The Investment Climate In Developing Nations, Jack Baranson

Vanderbilt Journal of Transnational Law

The changes of the 1960's point to two important trends in the 1970's--the continuing erosion of the foreign investment base and an expanding drive toward technological self-reliance. These tendencies have important implications for future operational modes of multinational corporations and for further adjustments in the world economy. First, developing countries will continue their efforts to eliminate foreign ownership and control of their industries and their preference for licensing arrangements and management services will continue to erode the foreign investment base. Secondly, developing countries will not be satisfied with the transfer of manufacturing techniques and related management systems. They will want …

The Rising Tide Of Reverse Flow: Would A Legislative Breakwater Violate U.S. Treaty Commitments?, Michigan Law Review

Michigan Law Review

Up to the present the United States has imposed few restrictions on foreign direct investment. It has never enacted any limitations as sweeping as those proposed by the Dent-Gaydos bill. This Note will briefly discuss the need for such restrictions and then examine the extent to which a reversal in policy is permitted by existing U.S. treaty obligations.

An Analysis Of Recent Proposals For Reform Of Federal Securities Legislation, William H. Painter

Michigan Law Review

Today the securities industry is in the midst of rapid change. Indeed it has been for at least the past decade, but in recent years the pace of change has increased, and its emphasis has shifted. Legislative and administrative reforms that could not have been anticipated a decade ago are likely in the near future, and it is still impossible to predict accurately the shape of the markets of tomorrow or the rules by which they will be governed. It is the purpose of this Article to focus on these recent developments, to summarize and evaluate various proposals for reform, …

Proposed Regulation Of Limited Partnership Investment Programs, Ivan J. Schell

University of Michigan Journal of Law Reform

Limited partners have long been admonished to scrutinize potential investments; this advice is often ignored, however, by investors eager to reap quick profits. Furthermore, the proliferation of limited partnership interests in a single enterprise diffuses the focus of investor vigilance and increases the potential for undetected abuses. Thus a need for regulation, either governmental or private, has developed. Currently the Uniform Limited Partnership Act and blue sky laws provide some control of limited partnership abuses at the state level. On the interstate level, the Midwest Securities Commissioners Association, the National Association of Securities Dealers, and the Securities and Exchange Commission …

Fulda & Schwartz: Regulation Of International Trade And Investment, Cases And Materials, Sigmund Timberg

Michigan Law Review

A Review of Regulation of International Trade and Investment, Cases and Materials by Carl H. Fulda and Warren F. Schwartz

The Problems: An Overview, Mark S. Massel

Vanderbilt Journal of Transnational Law

Securities regulation -- domestic and foreign -- has a technical fascination for the lawyer, whether he be a practicing attorney, corporate counsel, government regulator, or legal scholar. The intricate detail of the primary regulations and of their subsidiary byways provide opportunities for stimulating mental gymnastics. The piecing together of the various phases provides interesting occasions for experimentation, speculation, and analyzation.

Yet, a preoccupation with securities regulation which overlooks the setting can produce mere academic exercise. The need for an appreciation of the setting is all-important in examining foreign securities regulation. In considering United States securities regulation we do not need …

Lafave & Hay, Eds: International Trade, Investment, And Organization, Carl H. Fulda

Michigan Law Review

A Review of International Trade, Investment, and Organization edited by W.R. LaFave and P. Hay

Control Of Foreign Investment In France, Charles Torem, William Laurence Craig

Michigan Law Review

The principle of freedom of investment by foreigners in France has, with few statutory exceptions, long been recognized in French law. In practice, however, exchange controls, requiring French government authorization for all foreign exchange transactions within France, have supplied the legal foundation for governmental control of foreign investment. Initiated in 1939 as a wartime measure to stem the outflow of the nation's currency to safer havens,1 exchange controls were continued in the postwar era to protect a weak currency and were elaborated, in piecemeal fashion, to suit diverse and changing governmental policies. The complex and pervasive regulations provided an instrument …

The Regulation Of Investment Advice: Subscription Advisers And Fiduciary Duties, Charles G. Nickson

Michigan Law Review

In the landmark decision of SEC v. Capital Gains Research Bureau, Inc., the United States Supreme Court upheld the Commission's interpretation of an adviser's quasi-fiduciary status under the Investment Advisers Act of 1940 by holding fraudulent the failure of a subscription adviser to disclose to his clients his practice of acquiring securities before recommending their purchase, with the intent to resell immediately after the recommendation. It is the purpose of this comment to examine the major problems attending the dissemination of investment advice by subscription advisers, to evaluate those problems in the light of the higher standards of disclosure …

Less Developed Countries And The Revenue Act Of 1962, William D. Popkin

Indiana Law Journal

No abstract provided.

The Real Estate Investment Trust: State Law Problems

Fordham Law Review

No abstract provided.

Real Estate Investment Trusts: Problems And Prospects, Theodore Lynn

Fordham Law Review

No abstract provided.

Fifteen-Year Survey Of Corporate Developments, 1944-1959, Miguel A. De Capriles

Vanderbilt Law Review

The foregoing survey, it is believed, amply demonstrates the kaleidoscopic variety of the corporate developments of the past fifteen years, even though for obvious reasons much of the detail has had to be omitted. General conclusions are difficult to draw. It seems likely that the success of capitalist enterprise in this, period and the self-imposed improvement in standards of corporate. Fanchon & Marco, Inc. v. Paramount Pictures, 202 F.2d 731 (2d Cir. management have retarded the underlying trend toward expansion of the role of government in the regulation of economic affairs. There has been no occasion for new dramatic statutory …

Summary Of The General Enactments Of The 1951 Session Of The General Assembly Of South Carolina, T. R. Sams, William A. Cook

South Carolina Law Review

No abstract provided.

American Business And Risk Capital, Emil Schram

Vanderbilt Law Review

In the midst of a nation-wide business surge--in building, in steel, in automobiles and petroleum production and farming--our capital markets stand alone as the one "depressed area" in the national economy.

It is due to the failure of many of those who call the tune on our country's fiscal and credit policies to realize that they are sluicing off the top soil from a resource as definite and tangible as our farms; they are eroding something as measurable as our grazing lands; they are pumping off onto barren ground something as exhaustible as our oil wells.

I am speaking of …

The Sec And The Broker-Dealer, Louis Loss

Vanderbilt Law Review

A couple of weeks ago the Commission handed down an opinion in a broker-dealer revocation proceeding which is the latest in a series of cases over the past few years that have gradually blocked out the duties of a broker-dealer to his customer. That case gives me my theme today.

It happens that most of what I am about to say relates primarily to the over-the-counter market. I was a little disturbed about the propriety of talking about over-the-counter problems under the auspices of this organization. However, we are all interested, I take it, in the problems of the securities …

The Investment Advisers Act Of 1940, W.T. Mallison Jr.

Vanderbilt Law Review

There were many questionable business methods which could be used by advisers prior to the passage of the Act. In 1939, it was not uncommon for an adviser to arrange that one client buy a certain security and that another sell the same one. Where the adviser operated on the then commonly accepted basis of receiving a proportion of profits made by his clients, he could not lose by using this technique. The adviser's sole concern was to seek new clients to replace those whose assets or credulity were exhausted. Adviser custody of clients' funds was the basis of most …

Trusts.....Charitable Accumulations-Provision For Indefinite Accumulation, John A. Huston S.Ed.

Michigan Law Review

Testatrix left real and personal property in trust with directions that one half of the income should be paid to nine designated charities and that the other half should be "invested and reinvested . . . for the preservation of the . . . Memorial Fund in perpetuity." In a suit for instructions filed by the executor and the trustee, held, reversing the decision below, the trust is void as a private trust created to endure longer than the period limited by the rule against perpetuities. The dominant purpose of the testatrix, as revealed in the provision for accumulation, …

Public Utilities-Smythe V. Ames Again, Thomas G. Long

Michigan Law Review

The suit arose in 1893 over railroad freight rates prescribed by an act of the legislature of Nebraska approved April 12, 1893 which went into effect August 1, 1893. The claim was that the rates prescribed were so low that the plaintiff stockholders' railroads were deprived of property in contravention of the Fourteenth Amendment to the Constitution of the United States. The state officials showed "that the railroads of Nebraska can be reproduced completely for about $20,000 per mile." Eleven railroads were concerned. The lowest funded debt was $12,324 per mile with four over $20,000 per mile. The par value …

A Warning Signal For Municipal Bondholders: Some Implications Of Erie Railroad V. Tompkins, Irvin Long

Michigan Law Review

That branch of municipal bond litigation in which the character and validity of the obligations is involved has usually been conducted in the federal courts. Bondholders pressing for payment of their defaulted bonds usually are nonresidents of the state where the city, county or other defaulting municipality is located. Varying and contradictory state court decisions taught them that no settled rule of decision in the state courts could be expected. The arguments of their counsel, which many of the earlier volumes of the Supreme Court reports preserve, show that they distrusted a judiciary elected for short terms, as was the …

Losses Resulting From Stock Becoming Worthless – Deductability Under Federal Income Tax Laws, Joseph B. Lynch

Fordham Law Review

No abstract provided.

Bankruptcy- Preferred Stockholders As Creditors For Accrued Dividends Under Section 77b Of The Bankruptcy Act

Michigan Law Review

Preferred stockholders were "beguiled" into purchasing their stock, and paid, as part of the subscription price, for accrued dividends at the rate of 6 per cent per annum from June 1, 1933, to the date of their respective subscriptions, upon the "virtual promise of refund" on December 1, 1933, the next dividend date. No dividend was declared or paid. Such stockholders seek to file a petition for the reorganization of the corporation under Section 77B of the Bankruptcy Act as "creditors" within the meaning of the word as employed in that section. Held, they are "creditors" within the meaning …

Goodwill And Other Nondepreciable And Depreciable Intangible Property As Invested Capital, Frederick Thulin

Michigan Law Review

The subject of intangible property under the federal tax laws is somewhat misunderstood. Many errors of an important nature have undoubtedly been made in reference thereto. The purpose of this paper is to point out the situations as they often exist and to give practical suggestions as to how to handle them insofar as authorized by the law and the treasury decisions and regulations.

Domestic Corporate Tangible And Intangible Invested Capital, Frederick M. Thulin

Michigan Law Review

With a tax law on the statute books that fixes a moderate flat rate of taxation on business income, no question of invested capital need be considered. The income tax laws of 1913 and 1916 and the flat rate or normal tax section of the 1917 law and the proposed 1918 law bear out this statement.

Combination Not Competition Of Railroads, Blewett Lee

Michigan Law Review

In the course of the taking of evidence before what is generally called the Newlands Committee, appointed by Congress to investigate conditions relating to interstate and foreign commerce, it was very interesting to observe the personality of the different members of the Committee, as indicated by the questions which they asked of the various expert witnesses who were brought before them. The keen intellect of the Senior Senator from Iowa has continually played about the problem, how the revenues of the weak lines can be increased without at the same time increasing those of the strong ones. Assuming that some …