Commercial Law Commons^™

The Negative Commerce Clause And State Environmental Legislation-Externalities Suggest Application Of The Tax Standard To Environmental Regulations, Douglas K. Stewart

Vanderbilt Law Review

This Note advocates judicial application of this tax analysis not only to tax environmental legislation, but also to regulatory environmental legislation. The theoretical justification for this thesis is provided by the economic concept of externalities. Externalities are elements used in the production of a marketed item without cost to the producer, but at a cost to others. The term "externality"stems from the fact that the use of the element of production is not included in the market price of the item. Undesirable environmental impact has been recognized as an externality -- a cost to those people adversely affected by it …

Justice Stevens: The First Three Terms, George C. Lamb, Iii, Charles L. Schlumberger, D. J. Simonetti, James D. Spratt Jr., Joel R. Tew, Douglas W. Ey, Jr. Special Projects Editor

Vanderbilt Law Review

This Special Project undertakes an examination of Justice Stevens' Supreme Court opinions in an effort to identify his philosophical orientations, to evaluate the consistency of his views, and to determine the extent to which he has developed workable analytical methods. To achieve these goals, Justice Stevens' opinions are examined in three contexts: first, the area of federal-state relations,including commerce clause and supremacy clause questions; second, the individual rights area, emphasizing criminal constitutional and first amendment issues, and problems of fifth and fourteenth amendment analysis; and third, questions concerning the proper role of the Supreme Court in the constitutional scheme. Even …

Corporate Directors' Liability For Resisting A Tender Offer: Proposed Substantive And Procedural Modifications Of Existing State Fiduciary Standards, Oby T. Brewer, Iii

Vanderbilt Law Review

This Note will review recent decisions applying state law fiduciary standards and will propose procedural and substantive modifications to existing standards. The proposed modifications will compel target directors to recognize and fulfill fiduciary obligations when faced with a decision whether or not to resist a tender offer.

Books Received, C. C. S.

Vanderbilt Journal of Transnational Law

APPLICABLE LAW IN INTERNATIONAL COMMERCIAL ARBITRATION By Julian D. M. Lew. Dobbs Ferry, New York: Oceana Publications,1978. Pp. 633.

COMPARATIVE LAW YEARBOOK Issued by The Center for International Legal Studies Germantown, Maryland: Sijthoff & Noordhoff, 1979. Pp. 300.

CONTEMPORARY INTERNATIONAL LAW: A CONCISE INTRODUCTION By Werner Levi Boulder, Colorado: The Westview Press, 1979. Pp.391.

DIRECT INVESTMENT AND DEVELOPMENT IN THE U.S. By Raymond J. Waldman Washington, D.C.: Transnational Investments, 1979.Pp. 413.

ENHANCING GLOBAL HUMAN RIGHTS Edited by J. I. Dominguez and others New York: McGraw-Hill, 1979. Pp. 270.

THE ETHNOGRAPHY OF LAW By Laura Nader Menasha, Wisconsin: American Anthropological Association, …

The Foreign Corrupt Practices Act: Problems Of Extraterritorial Application, Shelley O'Neill

Vanderbilt Journal of Transnational Law

The Foreign Corrupt Practices Act of 1977, an amendment to the Securities and Exchange Act of 1934 (Exchange Act), criminalizes bribery of foreign officials and requires audit controls and accurate reporting of transactions by United States companies. By enacting the legislation, Congress condemned foreign bribery as distorting trade and investment, undermining public confidence in United States enterprise, and damaging foreign relations. The Securities and Exchange Commission (SEC) also opposed corporate bribery as a threat to managerial accountability to shareholders. President Carter, while signing the legislation, emphasized its basic policy considerations.

The Act responded to increasing revelations concerning the widespread practice …

The Foreign Corrupt Practices Act Of 1977: A Private Right Of Action?, Mary F. Lyle

Vanderbilt Journal of Transnational Law

The Foreign Corrupt Practices Act of 1977 (the Act) was passed as a consequence of revelations of foreign and domestic bribes, kickbacks, political payoffs and other questionable financial practices by corporations throughout the past several years. The Act requires issuers of securities subject to the registration and reporting provisions of the Securities Exchange Act of 1934 to comply with specific accounting standards. In addition, the Act provides for civil and criminal liability when an issuer or any domestic concern not an issuer uses the mails or any instrumentality of interstate commerce in furtherance of certain payments to foreign officials...

The …

Foreign Discovery And U.S. Antitrust Policy--The Conflict Resolving Mechanisms, Donald L. Flexner

Vanderbilt Journal of Transnational Law

A look back at the last thirty years of United States antitrust's foreign "voyages of discovery" among friendly nations reveals a picture too often resembling not so much an era of good feeling as a thirty years war. Following hard upon Judge Hand's famous formulation of the "effects" doctrine in Alcoa in 1946 the Antitrust Division conducted a series of investigations in which compulsory process was used to seek documents located in foreign nations. Prodded by what they viewed as U.S. antitrust authorities' impermissible overreaching, the affected countries began to enact defensive "blocking statutes." The passage by Canada's Ontario Province …

Case Digest, Journal Staff

Vanderbilt Journal of Transnational Law

A Time Charterer is not Liable as Owner Pro Hac Vice for Injuries Incurred by Employees of the Vessel's Owner in the Course of their Employment

U.S. Violation of Regulation in Deportation Proceeding Renders Alien's Deportation Unlawful only if Such Violation Prejudiced the Alien's Interests Protected by the Regulation

Where Information Regarding Weight of Suitcase Checked with Airline is Undocumented, Liability Limitation of the Warsaw Convention does not Apply

Cultural Exchange Agreements involving Payment Constitute Commercial Activity and are not Immune under the Foreign Sovereign Immunities Act

In Search Of An International Solution To Bribery: The Impact Of The Foreign Corrupt Practices Act Of 1977 On Corporate Behavior, Steven M. Morgan

Vanderbilt Journal of Transnational Law

Since enactment, the FCPA has been criticized for its ambiguity, pitfalls, and underlying policy weakness. For instance, a payment of $10,000 to a customs official by X Corporation in order to speed a shipment of perishables through customs would be a legal facilitating payment under the FCPA. Under the same circumstances, however, a $100 payment to a Cabinet minister who has the discretionary power to clear the shipment will subject the X Corporation to a million dollar fine and expose the guilty company officer, director or employee to a jail term of up to five years for violating the FCPA. …

China's Joint Venture Law: A Preliminary Analysis, Preston M. Torbert

Vanderbilt Journal of Transnational Law

China's Joint Venture Law is an impressive step towards modernizing the Chinese economy with the help of Western managerial and technical help. It is, however, unclear and incomplete in several respects. In assessing the nature of the Joint Venture Law as it presently stands and in forecasting the changes that will be made, it is helpful to look both to the experiences of Romania and Yugoslavia as well as to China's own experience with compensation trade and joint state-private enterprises. Not only are these prior experiences valuable from an analytical point of view, but they are also useful as practical …

Recent Decisions, Jamie S. Martin, Margaret H. Fiorillo, J. Andrew Hoyal, Ii

Vanderbilt Journal of Transnational Law

CONSTITUTIONAL LAW--COMMERCE CLAUSE--STATE TAX ON INSTRUMENTALITIES OF FOREIGN COMMERCE INVALID WHEN TAX RESULTS IN MULTIPLE TAXATION AND IMPAIRS FEDERAL UNIFORMITY IN REGULATION OF FOREIGN TRADE

Jamie S. Martin

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IMMIGRATION--LAWFUL UNRELINQUISHED DOMICILE--DEPORTABLE RESIDENT ALIEN MUST ACCUMULATE SEVEN YEARS OFLAWFUL DOMICILE SUBSEQUENT TO ADMISSION FOR PERMANENT RESIDENCE TO BE ELIGIBLE FOR DISCRETIONARY RELIEF

Margaret H. Fiorillo

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LONGSHOREMEN'S AND HARBOR WORKERS' COMPENSATION ACT--MANUFACTURER MAY SUE STEVEDORE FOR INDEMNIFICATION FROM LIABILITY ARISING OUT OF LONGSHOREMEN'S INJURIES--THEORY OF EQUITABLE CREDIT DOES NOT APPLY TO THE LHWCA

J. Andrew Hoyal, II

Post-Dissolution Liabilities Of Shareholders And Directors For Claims Against Dissolved Corporations, D. Gilbert Friedlander, P. Anthony Lannie

Vanderbilt Law Review

This Article initially will explore the nature and extent of shareholders' and directors' liabilities for contingent claims against the dissolved corporation by examining section 105 of the Model Business Corporation Act and the case law of those states that have adopted the Model Act.' Two purposes underlying the Model Act are uniformity and progressive resolution of issues inadequately resolved by the common law or earlier statutes. An exhaustive analysis of the case law under section 105 of the Model Act, however,reveals that both purposes have been frustrated, if not defeated. First, uniformity among jurisdictions, as well as within each Model …

State Buy-American Laws - Is There A Judicial Solution?, George C. Lamb, Iii

Vanderbilt Law Review

State buy-American statutes are among the most peculiar of legislative responses to problems of unemployment and low levels of economic growth in the United States. Designed to decrease unemployment among American workers by promoting the development of American industry, the statutes typically require that purchasers of goods to be used in state-subsidized projects prefer products manufactured in America over those made in foreign countries, often regardless of price or quality.' State buy-American statutes are presently in effect in a number of states, despite criticism that they constitute devices of economic protectionism for domestic goods and barriers to a unified United …

Section 243 And Bootstrap Sales: The Dilemma Of The Corporate Shareholder, Don B. Cannada

Vanderbilt Law Review

The differences in the tax treatment of dividends and redemptions, the tax goals of individual and corporate shareholders, and the characterizations given corporate distributions by the Internal Revenue Service and the courts have combined to create over-whelming confusion for corporate bootstrap sales. The purpose of this Note is to formulate a rational, consistent approach to the tax treatment of corporate bootstrap sales. Accordingly, this Note initially will discuss various lines of cases governing the possible tax treatment of the seller in a bootstrap acquisition. Special emphasis will be placed on the recent line of cases that deny section 243 intercorporate …

Competing Merger Offers - Disclosure And Related Problems, Law Review Staff

Vanderbilt Law Review

An attractive company that makes known its desire to find a merger partner or announces an agreement in principle to merge with another corporation is likely to receive multiple inquiries or multiple offers from acquisition-minded corporations. This Note examines various problems and duties confronting a publicly held company' that receives multiple merger inquiries and offers. The starting point for this analysis is one court's directive that a proxy statement soliciting shareholder approval of a merger recommended by management must disclose competing merger offers from third parties if such offers are "definitive" and "may" be more advantageous to the shareholders than …

Recent Cases, James S. Hutchinson, James R. Newson, Iii, Andrew W. Byrd, Judith Mi. Janssen, John E. Tavss

Vanderbilt Law Review

Civil Procedure--Attorney-Client Privilege-- Privilege Protects Communications Made by Corporate Employee To Secure Legal Advice and a Matter Committed to a Professional Legal Advisor Is Prima Facie Committed To Secure Legal Advice

James S. Hutchinson

attorney-client privilege, the "predominance" test, legal activities

In summary, courts have not yet resolved how to determine who may qualify as the corporate client for purposes of the attorney-client privilege...

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Constitutional Law-- Confrontation Clause-Admission at Trial of Slain Informant's

Prior Grand Jury Testimony Against Defendants Does …

Books Received, C. C. S.

Vanderbilt Journal of Transnational Law

COMMERCIAL OPERATIONS IN EUROPE

Edited by R. M. Goode and K. R. Simmons Published for the Faculty of Laws; Queen Mary College, University of London Boston: A. W. Sijthoff, 1978. Pp. 448.

COMPARATIVE CONSTITUTIONAL LAW

By Mauro Cappelletti and William Cohen Indianapolis, Indiana: Bobbs -Merrill, 1979. Pp. 628.

COMPARATIVE LAW: WESTERN EUROPEAN AND LATIN AMERICAN LEGAL SYSTEMS

By John H. Merryman and David S. Clark Indianapolis, Indiana: Bobbs -Merrill, 1978. Pp. 1278.

THE DISCIPLINE OF LAW

By Lord Denning London: Butterworths,1979. Pp. 330.

INTERNATIONAL LAW AND THE MOVEMENT OF PERSONS BETWEEN STATES

By Guy S. Goodwin -Gill Oxford: Clarendon Press, …

Remedies Under The Tennessee Commercial Code, John A. Walker, Jr.

Vanderbilt Law Review

The scope of this Article is limited to a discussion of the enforcement of consensual' liens under the Uniform Commercial Code as enacted in title 47 of the Tennessee Code. It does not include the panoply of other, nonconsensual remedies such as prejudgment attachment and postjudgment levy. In particular, this Article examines the applicability of the doctrine of election of remedies, the mechanics of repossession, and the rules applicable to the disposition of collateral, primarily as these concepts have been interpreted and applied by the courts of Tennessee.

Preamble, Herbert Wechsler

Vanderbilt Law Review

As readers of the Review are undoubtedly aware, the American Law Institute was organized in 1923 as a permanent organization of lawyers, judges, and law teachers "to promote," as its charter recites, "the clarification and simplification of the law and its better adaptation to social needs." ...

Work on the Code began' in 1969 with Professor Loss as the Reporter, aided by consultants and advisers whose experience and expertise is equaled only by their high distinction in this field. Five tentative drafts have been printed in the years from 1972 to 1976 and a sixth, which now is off the …

Antitrust Consequences Of United States Corporate Payments To Foreign Officials, James F. Rill, Richard L. Frank

Vanderbilt Law Review

This Article examines the feasibility and desirability of marshalling section 2(c)' of the Clayton Act as amended by the Robinson-Patman Act and sections 1 and 2 of the Sherman Act against a practice having deep legal, political, and emotional significance in the United States and overseas. Difficult questions of jurisdiction and coverage are presented, as are major issues of public policy on what the role, if any, should be for these provisions.

Products Liability--Liability Of Transferee For Defective Products Manufactured By Transferor, P. Anthony Lannie

Vanderbilt Law Review

In the landmark decision, Greenman v. Yuba Power Products,Inc., , the California Supreme Court eliminated a similar barrier to consideration of products liability goals-the breach of warranty theory designed to meet the needs of commercial transactions. Justice Traynor addressed the central question-"When should the manufacturer be responsible to those injured by his products?"'-and concluded that "rules . . .that were developed to meet the needs of commercial transactions cannot properly be invoked to govern the manufacturer's liability to those injured by their defective products unless those rules also serve the purposes for which such liability is imposed."' Confronted with another …

Recent Decisions, William W. Allen, Alexander A. Hassani, Peter A. Schuller

Vanderbilt Journal of Transnational Law

INCOME TAX--LIQUIDATION OF FOREIGN CORPORATIONS--SHAREHOLDERS IN A LIQUIDATING FOREIGN CORPORATION MUST INCLUDE IN THE CORPORATION'S EARNINGS AND PROFITS ACCOUNT THE AMOUNT OF RECAPTURED EXCESS DEPRECIATION REALIZED UPON THE SALE OF ITS ASSETS

William W. Allen

CUSTOMS DUTIES--ANTIDUMPING ACT OF 1921--THE SECRETARY OF THE TREASURY HAS No AUTHORITY TO TERMINATE A WITH-HOLDING OF APPRAISEMENT PRIOR TO THE PUBLICATION OF A DUMPING FINDING BASED ON A LIKELIHOOD OF INJURY DETERMINATION BY THE INTERNATIONAL TRADE COMMISSION

Alexander A. Hassani

INTERNATIONAL BANKING--BANKRUPTCY-FOREIGN BANKS NEITHER REGULATED BY NOR LICENSED To Do BUSINESS IN THE UNITED STATES MAY FILE FOR VOLUNTARY BANKRUPTCY UNDER THE NATIONAL BANKRUPTCY …

Case Digest, Journal Staff

Vanderbilt Journal of Transnational Law

1. ADMIRALTY

"CONTACTS" TEST BASED ON 99 PERCENT AMERICAN OWNERSHIP OF A FOREIGN CORPORATION WILL NOT BE APPLIED TO CIRCUMVENT THE RECIPROCITY PROVISION OF THE PUBLIC VESSELS ACT

SEARCH OF A U.S. VESSEL ON THE HIGH SEAS PURSUANT TO STATUTE AUTHORIZING SAFETY INSPECTIONS BY THE U.S. COAST GUARD MAY NOT BE ASSISTED BY AGENTS OF OTHER FEDERAL AGENCIES

LAND-BASED TORT PRINCIPLES OF NEGLIGENCE APPLY TO LIABILITY OF VESSELS FOR INJURIES TO LONGSHOREMEN RATHER THAN PRINCIPLES OF UNSEAWORTHINESS OR VIOLATION OF NONDELEGABLE DUTY

2. ALIEN'S RIGHTS

INTERRUPTION OF AN ALIEN'S PRESENCE IN THE UNITED STATES AND INVESTOR STATUS OF AN ALIEN …

Arms Transfers By The United States: Merchant Of Death Or Arsenal Of Democracy, Archibald S. Alexander

Vanderbilt Journal of Transnational Law

Controversial events of the last few years have presented the American public with the question whether arms transfers by the United States have gotten out of hand. Has our country become the chief "merchant of death," as believed by many at the time of Senator Nye's investigation soon after World War I, or is it the "arsenal of democracy," as generally believed during and after World War II? This article deals with transfers of all kinds of non-nuclear arms from or by the United States, and it examines all types of transfers including grants, transfers on credit, government to government …

Fiduciaries And Fairness Under Rule 10b-5, Thomas J. Sherrard

Vanderbilt Law Review

In Marshel v. AFW Fabric Corp., decided on February 13,1976, the court unanimously sustained a challenge to long-form merger under New York law for the sole purpose of "going private,"concluding that despite full disclosure, the merger itself constituted a fraudulent scheme because it represented an attempt by the majority stockholders, in violation of their fiduciary obligations, to utilize corporate funds strictly for personal benefit and for no legitimate corporate purpose...

It is the purpose of this article to analyze the Green and Marshel decisions against the backdrop of previous cases in the area of fraudulent mismanagement, to gauge their impact …

Membership Rights In Nonprofit Corporations: A Need For Increased Legal Recognition And Protection, Robert H. Brownlee

Vanderbilt Law Review

This Note has focused on three issues concerning membership in nonprofit corporations: whether members are entitled to increased protection of voting rights; whether state courts adequately have analyzed questions of membership standing to assert individual claims; and whether members should have standing to institute derivative actions on behalf of a nonprofit corporation. In each of these areas membership rights deserve increased legal recognition and protection.

Interstate Corporate Income Taxation-Recent Revolutions And A Modern Response, Eugene F. Corrigan

Vanderbilt Law Review

In recent years significant technical advances have enabled large corporations to sell into states from great distances and with a minimum of contact in those states. Nevertheless, the states and their political subdivisions are confronted with the claims of corporations that jurisdictional barriers to corporate income taxes should be raised, that improved enforcement techniques should be prohibited, and that certain classes of income should be immunized completely from state taxation. These revolutionary technical advances have created both major tax administration problems and tax administration opportunities for the states. Some of the latter, however, remain unexploited. This article examines the ramifications …

State Taxation Under The Commerce Clause: An Historical Perspective, Jerome R. Hellerstein

Vanderbilt Law Review

Although Congress has plenary power under the commerce clause to regulate state taxation of interstate commerce, that power remained virtually unexercised until 1959. As a consequence of the silence of Congress, the task of reconciling the competing interests of states, multistate businesses, and local businesses, and accommodating those interests to the needs of a national economy fell by default to the Supreme Court. The instrumentality available to the Court for dealing with the complex political, fiscal, and economic controversies inherent in state taxation of multistate business was the commerce clause (augmented by due process restrictions and,to a lesser extent, the …

Taxation Of Income From Intangibles Of Multistate-Multinational Corporations, William D. Dexter

Vanderbilt Law Review

In determining whether income from intangible investments should be subject to general apportionment rules or assigned to the commercial domicile or elsewhere the challenge to the states currently is to ascertain the true facts surrounding large corporate investments in intangible properties. The distinctions in UDITPA between business and nonbusiness income mandate this kind of factual inquiry. It is questionable, however, whether this distinction should continue to be given any significant effect, since it lacks substance and leads to endless conflict between large multistate and multinational corporations and each state in which they do business. Furthermore, in determining the state income …

"Solicitation" And "Delivery" Under Public Law 86-272: An Uncharted Course, Paul J. Hartman

Vanderbilt Law Review

In 1959, in response to pressure from multistate business and over the protest of state tax authorities and others, Congress passed Public Law 86-272 limiting the power of state and local governments to tax net income derived from interstate commerce.' The provisions of Public Law 86-272, briefly stated, prohibit state or local governments from imposing net income taxes on sellers of tangible personal property whose business activities in the state are limited to one or more of the following:. solicitation of orders for sales of tangible personal property by the seller or his own representative when the orders are sent …