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Michigan Law Review

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Articles 211 - 240 of 421

Full-Text Articles in Commercial Law

Contracts - Sales - Effect Of Reasonable Belief In Buyer's Insolvency On Seller's Duty To Perform, W. Wallace Kent Nov 1940

Contracts - Sales - Effect Of Reasonable Belief In Buyer's Insolvency On Seller's Duty To Perform, W. Wallace Kent

Michigan Law Review

The plaintiff ordered goods from the defendant, for immediate delivery, terms $1,500 down, balance covered by notes of three and six months. The check given for the down payment was dishonored because of insufficient funds but was subsequently honored. On investigation the defendant discovered that there were unpaid judgments outstanding against the plaintiff, some of which were upwards of three years old. Inferring that the plaintiff was insolvent, the defendant refused to deliver the goods unless cash was paid therefor and when plaintiff refused this offer defendant attempted to return the down payment. Held, plaintiff's affairs were in such …


Taxation -- State Sales Taxes In Relation To Interstate Commerce -- The Berwind-White Case, Eugene Gressman Jun 1940

Taxation -- State Sales Taxes In Relation To Interstate Commerce -- The Berwind-White Case, Eugene Gressman

Michigan Law Review

One of the underlying theories of the constitutional framework, as exemplified by the commerce clause, is that there shall be a free national market, unhampered by state tariffs or restrictions. Congressmen are free to ward off the rigors of disastrous foreign competition by bringing home industries under the protective umbrella of high national tariffs, but state legislators are supposed to be powerless to protect their local industries from the damaging competition--that "most potent stimulant to improvement and progress"--emanating from other states.


Constitutional Law - Interstate Commerce - State Regulation Of Exports Of Intoxicating Liquor, Michigan Law Review Jun 1940

Constitutional Law - Interstate Commerce - State Regulation Of Exports Of Intoxicating Liquor, Michigan Law Review

Michigan Law Review

On being refused a license, a carrier operating under the provisions of the Federal Motor Carrier Act sought to enjoin public officials of Kentucky from enforcing the penal and contraband portions of the Kentucky Liquor Law, which required a license from the state as a prerequisite to the right to transport liquor. Plaintiff claimed that the state act was a violation of its rights under the commerce clause in that the requirement of the license placed an unconstitutional burden on its right to transport liquor in interstate commerce. On appeal from a federal three-judge court's ruling sustaining a motion to …


Constitutional Law - Interstate Commerce - Validity Of Ordinance Requiring Drummer's License, Michigan Law Review Jun 1940

Constitutional Law - Interstate Commerce - Validity Of Ordinance Requiring Drummer's License, Michigan Law Review

Michigan Law Review

Defendant, a door-to-door salesman, solicited orders in Minnesota for goods, which were later shipped from his employer's factory in Wisconsin to his house in Minnesota. There he broke the original packages and filled his customers' orders by delivering the goods in a truck provided him by his employer. Defendant was convicted of violating a municipal ordinance requiring a license of all door-to-door canvassers. Held, the ordinance was unconstitutional as an unreasonable burden on interstate commerce, and the conviction should be set aside. City of Waseca v. Braun, (Minn. 1939) 288 N. W. 229.


Principal And Agent - Application Of "Sole Actor" Doctrine, Michigan Law Review Jun 1940

Principal And Agent - Application Of "Sole Actor" Doctrine, Michigan Law Review

Michigan Law Review

Defendant executed a note for $12,500 to the Taylor National Bank, due six months after date, at the request of one Morton, president and cashier of the bank. Defendant was told by Morton that the instrument was purely an accommodation note, that he would never have to pay anything on account of it and that before using it Morton would see that good and sufficient collateral was placed with it. In defense to an action on the note by the receiver of the bank, the defendant charged that the bank had knowledge of the conditions and purposes for which the …


Vendor And Purchaser-Vendor's Release Of Sub-Assignee Held A Discharge Of All Prior Assignees, Robert M. Warren Jun 1940

Vendor And Purchaser-Vendor's Release Of Sub-Assignee Held A Discharge Of All Prior Assignees, Robert M. Warren

Michigan Law Review

The bank for which plaintiff is receiver sold land on contract. There followed four successive assignments of the vendee's interest, in each of which the assignee expressly assumed the contract obligation. After the fourth assignment, default occurred as to payments and taxes, and plaintiff began negotiations to sell the property to an intermediate assignee, R. To effectuate this sale, plaintiff procured an assignment in blank from the fourth assignee, W, in consideration of a release of W from further liability on the contract. The negotiations with R having failed, plaintiff brought suit against the vendee and all the …


Taxation - Privilege Tax On Foreign Corporations - Due Process And Commerce Clauses - Validity Of Formula, James W. Deer May 1940

Taxation - Privilege Tax On Foreign Corporations - Due Process And Commerce Clauses - Validity Of Formula, James W. Deer

Michigan Law Review

The state of Texas levied an annual franchise tax on all corporations, both foreign and domestic, authorized to do business within the state. The tax was assessed on the basis of the amount of the total capital stock which was allocable to Texas, the allocation being based on the proportion that Texas gross receipts bore to total gross receipts. This formula, as applied to the Ford Motor Company, gave the statutory base of $23,000,000 on which Ford paid the tax under protest. The evidence showed that the Ford Motor Company had only an assembly plant in Texas worth $3,000,000, that …


Trade Marks And Trade Names - Assignment Of Wholesaler's Mark To One Who Will Continue To Sell The Identical Goods, Oscar Freedenberg May 1940

Trade Marks And Trade Names - Assignment Of Wholesaler's Mark To One Who Will Continue To Sell The Identical Goods, Oscar Freedenberg

Michigan Law Review

In cross suits for infringement of trade mark between the C Distilling Company and the P Brewing Company over the use of the trade mark "Century Club" on liquor and beer respectively, a collateral question arose, whether the assignment under which the distilling company claimed a right to the name was valid. The assignor of the trade mark was a wholesaler of several different brands of liquor that were produced by different distillers. The particular brand "Century Club" was manufactured by the C Distilling Co. The wholesaler assigned its right to use the name "Century Club" to the C Distilling …


Sales - Recovery By Seller Against Third Party Tortfeasor, Robert A. Solomon Apr 1940

Sales - Recovery By Seller Against Third Party Tortfeasor, Robert A. Solomon

Michigan Law Review

Plaintiff sold a truck under a conditional sales contract expressly reserving title until the purchase price was paid by the buyer. Pursuant to the terms of the contract, possession was transferred to the latter. While the truck was in his possession it was destroyed through the negligence of the defendant, a third party. At the time of the destruction the buyer had not defaulted in the payments. Held, affirming the decision of the lower court, that the plaintiff had no right to maintain an action against the defendant to recover for the negligent destruction of the truck. Gas City …


Taxation - Interstate Commerce - State Taxation Of Gasoline Of Interstate Motor Carriers, C. Eugene Gressman Apr 1940

Taxation - Interstate Commerce - State Taxation Of Gasoline Of Interstate Motor Carriers, C. Eugene Gressman

Michigan Law Review

An Arkansas statute required the payment of the state tax on all gasoline carried into the state in motor vehicle fuel tanks in excess of 20 gallons. The revenue therefrom was applied for highway purposes. Appellee's buses traveled four different routes, two from Memphis through Arkansas to St. Louis and two from Memphis to cities in Arkansas. For the Memphis-St. Louis trip, 68 gallons were required, only 16 of them being used in Arkansas. These 68 gallons, plus 10 extra ones, were placed in the tank at Memphis. On arrival at the Arkansas line, each bus still had 77 gallons …


Torts - Liability Of Manufacturer Or Supplier Of Defective Chattel - Limitation According To Type Of Harm, Michigan Law Review Mar 1940

Torts - Liability Of Manufacturer Or Supplier Of Defective Chattel - Limitation According To Type Of Harm, Michigan Law Review

Michigan Law Review

Defendant manufactured a type of building lath which was represented to the trade as "practical and satisfactory" and as "a sufficient and superior base for plaster on walls and ceilings in building construction." These laths were sold through another defendant, a supply company, to the plaintiffs, who were builders and owners. The laths were defectively constructed and would not retain plaster after installation. Consequently, the plaintiffs were compelled to remove the plaster and to purchase and install different laths at a high expense. Plaintiffs sued both the manufacturer and the supplier for the damages sustained. Held, a motion for …


Sales - Implied Warranty By Victualler, Michigan Law Review Dec 1939

Sales - Implied Warranty By Victualler, Michigan Law Review

Michigan Law Review

Plaintiff purchased a meal at defendant's restaurant, in connection with which he was served contaminated drinking water obtained from defendant's well; he became ill from drinking the water. Plaintiff sued on the theory of implied warranty by defendant of the fitness of the water sold under the Uniform Sales Act, and on the ground that the service of the contaminated water in violation of the Ohio Pure Food Law constituted negligence by defendant. Held, plaintiff may recover on either theory. Yochem v. Gloria, Inc., 134 Ohio St. 427, 17 N. E. (2d) 731 (1938).


Libel And Slander - Privilege Of "Fair And Accurate Report'' Of Judicial Proceedings-Non-Liability Of Vendor Of Newspaper, Ralph E. Helper Jun 1939

Libel And Slander - Privilege Of "Fair And Accurate Report'' Of Judicial Proceedings-Non-Liability Of Vendor Of Newspaper, Ralph E. Helper

Michigan Law Review

Defendant newspaper published a false account of plaintiff's testimony in a criminal trial. In an action for damages for libel against the newspaper and the local distributor of the papers who had no knowledge that libels were contained therein, held (1) privilege to report judicial proceedings applies only to a correct report, even though the inaccuracy be the result of an unintentional mistake; and ( 2) that the vendor is not liable in absence of knowledge that the newspaper contained libelous matter or knowledge of extraneous facts to put him on guard. Bowerman v. Detroit Free Press, 287 Mich. …


Municipal Corporations - Licenses - Prohibitory Fee On "Selfservice" Groceries, S. R. Stroud Jun 1939

Municipal Corporations - Licenses - Prohibitory Fee On "Selfservice" Groceries, S. R. Stroud

Michigan Law Review

A city ordinance imposed an annual license fee of $10,000 on "self-service" groceries. The city had power by statute to license stores for the sale of meat, groceries, etc., for revenue purposes. Plaintiff brought an action to enj9in the ordinance. Held, the ordinance was invalid and injunction should be granted. Great Atlantic & Pacific Tea Co. v. Board of Commissioners of Camden, (N. J. Eq. 1939) 4 A. (2d) 16.


Sales - Implied Warranties Running To Ultimate Consumer - Is Privity Of Contract Necessary?, William K. Jackson Apr 1939

Sales - Implied Warranties Running To Ultimate Consumer - Is Privity Of Contract Necessary?, William K. Jackson

Michigan Law Review

Plaintiff's husband purchased from defendant, a large retailer, minced ham and liverwurst manufactured by another concern. Plaintiff with other members of the family became ill after eating the liverwurst. An appeal was taken from a directed verdict for defendant. Held, when food is sold, there is no implied warranty of wholesomeness running from the retailer to the ultimate consumer; for the remedy is based on contract and limited to parties and privies thereto. Borucki v. MacKenzie Bros. Co., Inc., (Conn. 1938) 3 A. (2d) 224.


Interstate Commerce - Discrimination Between Shippers By Providing Non-Transportation Services At Less Than Cost, Thomas K. Fisher Apr 1939

Interstate Commerce - Discrimination Between Shippers By Providing Non-Transportation Services At Less Than Cost, Thomas K. Fisher

Michigan Law Review

In order to increase the use of rail transportation, seven railroads with terminals at the Port of New York expended a total of $35,000,000 in construction of warehouse and docking facilities. Charges for leases, storage (both in and out of the transit privilege), handling and insurance were found by the Interstate Commerce Commission to be non-compensatory. The commission further found that the below-cost warehouse rates were not available to all shippers alike. Upon an appeal by the carriers from a three-judge court's dismissal of their petition to enjoin enforcement of a cease and desist order issued by the commission, it …


Sales - Effect Of Buyer's Insolvency On Seller's Duty To Deliver Or Tender Goods, John H. Uhl Apr 1939

Sales - Effect Of Buyer's Insolvency On Seller's Duty To Deliver Or Tender Goods, John H. Uhl

Michigan Law Review

The plaintiff ordered goods from the defendant for immediate delivery, terms, $1,500 down, balance in three and six months, notes being given for the unpaid balance. The defendant accepted the order. When the check which the plaintiff gave for the down payment was dishonored, the defendant investigated his financial condition and discovered that there were a number of unsatisfied judgments against him. On learning this, the defendant notified the plaintiff that he could not make the sale on credit but would do so on a cash basis. Upon the plaintiff's refusal to accede, the defendant notified him that the order …


Carriers - State Taxation Of Interstate Motor Carriers, Thomas K. Fisher Mar 1939

Carriers - State Taxation Of Interstate Motor Carriers, Thomas K. Fisher

Michigan Law Review

Appellant, an Ohio corporation, was engaged exclusively in interstate commerce as a common carrier of property for hire by motor vehicle. In 1937 the Georgia legislature passed a Maintenance Tax Act which provided, inter alia, for a tax, graduated according to manufacturer's rated capacity, on each motor common carrier for hire, and a tax, substantially smaller in the respective rated capacities, on each motor vehicle not used as a common carrier for hire. Appellant contested the validity of the tax on the grounds that it was repugnant to the commerce clause of the Constitution and that it violated the equal …


Taxation - Interstate Commerce -Compensating Use Tax, Menefee D. Blackwell Mar 1939

Taxation - Interstate Commerce -Compensating Use Tax, Menefee D. Blackwell

Michigan Law Review

The California Use Tax Act of 1935 imposed an excise tax on the storage or use of personal property purchased in other states and brought into California. Plaintiff railway, engaged in both intrastate and interstate commerce, purchased supplies out of the state and imported them for the purpose of adding to and replacing worn out and broken equipment necessary for the operation of its offices and road. Some of the property acquired was stored a short period of time before it was used and some was used immediately on arrival for the purpose for which it had been imported. The …


Carriers - Discrimination -Allowance In Lieu Of Spotting Service By Railroads -Validity Of Cease And Desist Order, Arthur P. Boynton Feb 1939

Carriers - Discrimination -Allowance In Lieu Of Spotting Service By Railroads -Validity Of Cease And Desist Order, Arthur P. Boynton

Michigan Law Review

Nine industrial corporations sought to set aside an order of the Interstate Commerce Commission commanding the railroad or railroads serving industrial plants of the plaintiffs to cease and desist from the payment of allowance for the spotting of cars and switching services performed by plaintiffs on plant facilities. They contended the commission exceeded its powers in making the order and that its findings were not supported by substantial evidence. Held, that there was substantial evidence to support the findings and that the order was valid and should be sustained. United States v. Pan American Petroleum Corp., 304 U.S. …


Municipal Corporations - Licenses - Amount Of Fee, S. R. Stroud Jan 1939

Municipal Corporations - Licenses - Amount Of Fee, S. R. Stroud

Michigan Law Review

The defendant, a sandwich peddler, was convicted in the justice court of violation of an ordinance requiring peddlers to have a license. Upon appeal to the circuit court the conviction was set aside on the ground that the ordinance requiring a peddler to obtain a license at $150 per vehicle per year was invalid since the fee was unreasonably high. Held, the circuit court should be reversed and the conviction sustained since the amount of the license fee could not be considered unreasonably excessive in view of all the circumstances. People v. Riksen, 284 Mich. 284, 279 N. …


Interstate Commerce - Right Of State To Deny Use Of Highways To Carrier Having Certificate From Interstate Commerce Commission, Ralph Winkler Jan 1939

Interstate Commerce - Right Of State To Deny Use Of Highways To Carrier Having Certificate From Interstate Commerce Commission, Ralph Winkler

Michigan Law Review

A common carrier engaged in interstate commerce applied to the Interstate Commerce Commission for a certificate of convenience and necessity as required by section 206 of the Federal Motor Carrier Act of 1935. The carrier relied on the proviso authorizing the commission to grant a certificate without a showing of public convenience and necessity where the applicant was a carrier in bona fide operation on June 1, 1935; the statute further privileged a carrier applying for a certificate under this proviso to continue operation pending determination of its application. The State Railroad Commission of Texas earlier in 1934 had denied …


Sales - Implied Warranty - Explosive In Cigar, James W. Mehaffy Dec 1938

Sales - Implied Warranty - Explosive In Cigar, James W. Mehaffy

Michigan Law Review

Plaintiff purchased cigars from a retail merchant. The cigars were sold under a trade name and when purchased from a wholesaler by the retailer were wrapped in cellophane, and were sold to the plaintiff while still in the original wrapper. One of the cigars contained a firecracker, which exploded when plaintiff lighted the cigar, causing substantial injury. Held, that the plaintiff can recover from the retailer. Dow Drug Co. v. Nieman, 57 Ohio App. 190, 13 N. E. (2d) 130 (1936).


Manufacturer's Liability For Injuries Caused By His Products: Defective Automobiles, Lester W. Feezer Nov 1938

Manufacturer's Liability For Injuries Caused By His Products: Defective Automobiles, Lester W. Feezer

Michigan Law Review

When a manufactured article fails to meet the reasonable expectations of the purchaser-user and in consequence he suffers personal injury or property damage, is the manufacturer responsible? When the user purchases from the manufacturer, so that there is privity of contract and the formulated concepts of sales and warranty law are available, we have a relatively simple situation which it is not the primary purpose of this paper to discuss. The common-law concepts for dealing with such problems seem to have been formulated in times when this privity element was usually present, and it is therefore not a matter of …


Constitutional Law -Validity Of Registration Provisions Of Public Utility Holding Company Act Of 1935, Gerald L. Stoetzer Jun 1938

Constitutional Law -Validity Of Registration Provisions Of Public Utility Holding Company Act Of 1935, Gerald L. Stoetzer

Michigan Law Review

In recognition of the abuses that arise from the monopolistic tendencies of holding companies in the public utility field and of the inability of the respective states to exert the necessary control thereof, Congress has attempted to draw certain of the public utility holding companies within the inquisitorial and regulatory control of the federal Securities and Exchange Commission. The Public Utility Holding Company Act of 1935, reciting in great detail facts showing the necessity for control of holding companies having as subsidiaries electric and gas operating utilities, indicates that Congress regarded the uncontrolled utility holding company as "an agency which, …


Taxation - Sales - Recovery Of Processing Taxes - Remedies Of The Buyer, Keith P. Bondurant May 1938

Taxation - Sales - Recovery Of Processing Taxes - Remedies Of The Buyer, Keith P. Bondurant

Michigan Law Review

Defendant, a flour milling company, was subjected to payment of processing taxes under the Agricultural Adjustment Act. It entered into contracts with plaintiffs, by the terms of which the amount of such taxes was included in the purchase price of flour. The contracts provided that the amount of any decrease in processing taxes levied against defendant would inure to the benefit of the buyers and be credited against the contract price. Meanwhile, defendant, contesting the validity of the tax, had deposited in court a sum equal to the amount of accrued taxes. After the Supreme Court invalidated the A. A. …


Injunctions - Defamation - Injury To Business, Charles E. Nadeau May 1938

Injunctions - Defamation - Injury To Business, Charles E. Nadeau

Michigan Law Review

A complaint praying for an injunction alleged that plaintiff, a retail dealer in automobiles, sold defendant an automobile in good condition; that defendant complained of the steering and demanded a replacement of the parts; that upon inspection, the steering apparatus was found to be in good condition and defendant's request was refused; that thereafter defendant carried signs on the car indicating that it was defective and that plaintiff would do nothing about it; and that he did this, knowing that his claims were false, solely for the purpose of injuring plaintiff and to extort money from him. On overruling a …


Libel And Slander - Slander Of Title As A Protection Against Unfair Interference With Sale Of Literary Work, James W. Mehaffy May 1938

Libel And Slander - Slander Of Title As A Protection Against Unfair Interference With Sale Of Literary Work, James W. Mehaffy

Michigan Law Review

In a slander of title action, the complaint alleged that defendant requested plaintiffs to write a motion picture scenario based on historical events, but after plaintiffs submitted the scenario, defendant rejected it. Thereafter defendant announced its intention, by filing a statement with a voluntary association of motion picture producers, to produce a picture based on the same plot as that contained in plaintiffs' scenario. As a result, plaintiffs were unable to sell their scenario to any other producer. Held, that the complaint was insufficient in the absence of an allegation of special damages. Carrol v. Warner Bros. Pictures, Inc. …


Interstate Commerce - Constitutionality Of State Weight And Size Limitations As Applied To Interstate Motor Carriers, Paul G. Kauper Apr 1938

Interstate Commerce - Constitutionality Of State Weight And Size Limitations As Applied To Interstate Motor Carriers, Paul G. Kauper

Michigan Law Review

A South Carolina statute limited the width of motor trucks (including semi-trailers) to 90 inches and their gross weight to 20,000 pounds. The validity of this legislation was challenged before a three-judge federal court on three grounds: (1) that it was a denial of due process under the Fourteenth Amendment; (2) that the power of the states to regulate size and weight of motor vehicles used in interstate commerce had been superseded by the Federal Motor Carrier Act of 1935; (3) that the statute as applied to vehicles used by interstate motor carriers placed an unreasonable burden upon interstate commerce. …


Taxation - Compensating Use Tax - Theory - Burden On Interstate Commerce, Brackley Shaw Apr 1938

Taxation - Compensating Use Tax - Theory - Burden On Interstate Commerce, Brackley Shaw

Michigan Law Review

The California Use Tax Act of 1935 imposes an excise tax on the storage or use of personal property purchased in other states and brought into California. Plaintiff railroad bought materials and supplies in other states and stored them in California before installation on its interstate railroad system, and the tax was assessed on them. Held, the tax is unconstitutional as applied to such property as a direct burden on interstate commerce. Where the property was purchased for the sole purpose of being reserve equipment in an interstate commerce plant it is employed in interstate commerce from the time …