Marketing Law Commons^™

Ftc May Determine Whether Advertisements Containing Therapeutic Claims In Promotion Of Health Books Are Deceptive- Rodale Press, Inc., Michigan Law Review

Michigan Law Review

Rodale Press advertised that the ideas and suggestions in its publication, The Health Finder, would increase life span, prevent various diseases, and permit savings on medical and dental expenses. The Federal Trade Commission challenged the advertising claims, which were substantially restatements of claims made in the book, on the ground that adherence to the book's suggestions would not effect the promised results. The hearing examiner denied Rodale's motion to dismiss the complaint. On request for permission to file an interlocutory appeal from the dismissal, held, request denied, one commissioner dissenting. The Commission may challenge the collateral claims in …

Canon Of Professional Ethics-Cooperation In Preparation Of News Articles As Advertising In Violation Of Canon 27, Joseph F. Mcdonald

Michigan Law Review

Two recent decisions were the first to construe the prohibition against indirect advertising embodied in Canon 27 of the Canons of Professional Ethics. Although the facts and issues involved were substantially alike, the holdings were divergent.

At the request of a local Miami newspaper, respondent submitted to an interview which formed the basis of a full page article in the "Sunday Supplement." The article see forth a complimentary biography of respondent and described the internal workings of his firm. Respondent was found guilty of violating Canon 27 by the Grievance Committee of the Florida State Bar Association. The recommendation was …

Group Fraud: Fault Or Duty, William J. Moore

Cleveland State Law Review

Recently, the legal bastion of "fairness" and "fault" in fraud and decit cases has been assaulted by courts, administrative agencies, and legal scholars. The walls are still standing, but here and there cracks have begun to appear and the words status and duty are no longer obscene in the field of seller's liability for false and misleading representations. A thorough study would require an analysis of all the environmental factors in a group-institutionalized society and also the interests the courts are protecting. Thispaper will touch on judicial protection of the consumer's interest in physical integrity, and the protection of consumer …

Insurance-Regulation Under The Mccarran-Ferguson Act-Ftc Jurisdiction Not Ousted By A State Statute Proporting To Control Deceptive Advertising Mailed To Other States, Thomas D. Heekin

Michigan Law Review

Petitioner issued a cease-and-desist order prohibiting respondent from making statements in its advertising materials which violated the Federal Trade Commission Act. Respondent, a Nebraska health insurance company, mailed its circulars to residents of every state. The McCarran-Ferguson Act provides that "the Federal Trade Commission Act ... shall be applicable to the business of insurance to the extent that such business is not regulated by State law." A Nebraska statute prohibits an insurer domiciled there from engaging in unfair business practices in any state. In an action to set aside the FTC cease-and-desist order, the Court of Appeals for the Eighth …

Registered Trademark Marking Requirements, Cameron K. Wehringer

Cleveland State Law Review

The ® symbol is at times rarely used,sometimes moderately used, and sometimes perhaps over-used.Two major questions then. What is the necessary use, and what is the situation as to prevailing use?

Contracts -- 1960 Tennessee Survey, Paul J. Hartman

Vanderbilt Law Review

During the period covered by this survey, the Tennessee courts have had occasion to decide some rather basic questions in the law of contracts. These cases are the subject of comment. Other cases involving only questions of burden of proof regarding contracts questions have not be commented on.

Taxation - Ordinary And Necessary Expenses - Deduction Of Advertising Expenses Incurred To Defeat State Initiative Measures, Robert J. Paley S.Ed.

Michigan Law Review

Petitioners were members of a partnership engaged in the wholesale distribution of beer in Washington. In 1948 the partnership made contributions to a publicity campaign instituted to defeat an initiative to be presented to the voting public, the passage of which would have placed retail beer and wine sales exclusively in state hands. In their 1948 tax returns petitioners deducted the amount contributed as ordinary and necessary business expense. After the Commissioner disallowed the deduction the petitioners paid the deficiency under protest and sued for a refund in the district court. That court denied the refund, ruling that the payments …

Unfair Trade - Practices - Robinson-Patman Act - Payments For Advertising Under Sections 2 (D) And 2 (E), Robert Segar

Michigan Law Review

Plaintiffs, wholesale and retail grocers, brought a class action for treble damages and injunctive relief under sections 2(d) and 2(e) of the Robinson-Patman Act. Defendant suppliers of defendant-A & P Co. had paid for advertising in Woman's Day, a magazine published by a wholly-owned subsidiary of A & P, without making a corresponding allowance available to plaintiffs who had no similar publication. The district court found no violation of section 2(e) since the suppliers were not contributing to the furnishing of a discriminatory service within the meaning of that section. Because the advertising was designed primarily to aid defendant-suppliers, …

Unfair Competition - False Advertising - Scope Of Federal Jurisdiction Under Section 43(A) Of Lanham Act, John D. Kelly S.Ed.

Michigan Law Review

Plaintiff brought suit in a state court seeking injunctive relief, alleging unfair competition by defendant in manufacturing and selling slavish copies of plaintiff's swimsuits. One of the six causes of action alleged in the complaint was based on a violation of section 43 (a) of the Lanham Act. Defendant had the suit removed to federal district court. On motion to remand, held, denied. The alleged violation of section 43 (a) created a federal right of action within the original jurisdiction of the federal courts. Catalina, Inc. v. Gem Swimwear, Inc., (S.D. N.Y. 1958) 162 F. Supp. 911.

Insurance - Federal Regulation - Authority Of Federal Trade Commission To Regulate False Advertising By Insurance Companies As Affected By The Mccarran-Ferguson Act, Charles C. Moore S.Ed.

Michigan Law Review

Petitioner, the FTC, issued cease and desist orders prohibiting respondent health and accident insurance companies, doing business in interstate commerce, from disseminating allegedly false and deceptive advertising through the medium of local agents. These orders, issued pursuant to the FTC act, sought to proscribe such activity both in states that had statutes prohibiting unfair and deceptive practices and in states that did not. The Courts of Appeals for the Fifth and Sixth Circuits concluded that the FTC had no authority to regulate such advertising in states which had prohibitory legislation. On certiorari to the United States Supreme Court, held, …

Evidence In Motor Carrier Application Cases, Everett Hutchinson, George M. Chandler

Vanderbilt Law Review

The Motor Carrier Act of 19351 brought under regulation by the Interstate Commerce Commission the operation of for-hire motor carriers. The act, which is now part II of the Interstate Commerce Act, requires all such motor carriers, with certain exceptions, to obtain operating authority from the Commission. Carriers operating prior to the passage of the act were granted authority under "grand-father" provisions by a mere showing of past operations, but carriers entering the field since that date or desiring to extend their operations are required to prove that there is a public need for the service which they propose. A …

Stockholders' Derivative Suits In Southern Jurisdictions, W. Jack Williams

Vanderbilt Law Review

The stockholders' derivative suit has been of increasing prominence during the past several decades. As an action in equity instituted by individual stockholders, the suit is representative in nature in that the stockholder prosecutes the action for all stockholders who are similarly situated. Yet, as the suit is in behalf of the corporate entity and not the stockholders personally, it is derivative.'

As in most other areas of corporate law in southern jurisdictions,there exists no comprehensive body of statutory or case law dealing with all facets of stockholders' derivative suits. The greater part of the body of law in this …

Trading Stamps, Josiah Baker

Vanderbilt Law Review

It is as hard to define the trading stamp as it is to count the points on the circumference of a circle, for a trading stamp is what it appears to be and that, of course, depends upon point of view. To the housewife,it is a coupon--in some instances free, in others expensive--for which a redemption value may be claimed. To the stamp-issuing merchant,it is a method of advertising taking the form of a promotional device or operating as a discount to cash customers. To the nonissuing merchant, it is an instrumentality of unfair competition. To the trading stamp company, …

Du Pont General Motors Case, James A. Hart

Vanderbilt Law Review

On June 3, 1957, the United States Supreme Court, in a four to two decision, held that the du Pont Company's ownership of twenty-three per cent of the voting stock of General Motors had tended to create a monopoly in a line of commerce and thus violated section 71 of the Clayton Act. Justice Brennan wrote the majority opinion and Justice Burton, joined by Justice Frankfurter filed a vigorous dissent. Three of the Justices, Clark, Harlan and Whittaker took no part in the consideration or decision of the case. Hence, a possibility remains that the present Court, with all nine …

Refusal To Sell, Vernon A. Mund

Vanderbilt Law Review

Today, the business practice of refusal to sell is one of the principal antitrust complaints. However, paradoxically, it is a complaint which receives practically the least amount of attention and relief. Typically, the antitrust agencies treat reports on refusal to sell with the generalized reply that "the seller has the right to choose his own customers." The very number of complaints, however, as well as an economic analysis of the practice itself, points to the need for a reevaluation of this business practice and for a reappraisal of the currently applicable judicial decisions.

As we shall see in the present …

The Right Of A Businessman To Lower The Price Of His Goods, Stanley D. Rose

Vanderbilt Law Review

The present actions being taken to mark the transition from cold to hot war are settling a number of problems and creating a host of others. The direction of our national effort within the economy will shift to production; our normal interest would be in distribution. This shift will not mean that the antitrust laws will be entirely suspended. There remain certain vital functions of protecting whole classes of citizens during the coming years of stress and for that day when once again we return to our new two-cars-for-every-family ideal.

'But it cannot be denied that a discussion of lowering …

Cooperative Corporation Law On The Marketing Transaction, A. Ladru Jensen

Washington Law Review

In our generation American agricultural leaders have pioneered a new system of marketing. They have developed and expanded a new type of business unit: an association of producers acting by and through a non-profit corporation agent which they create and control. In our day the lawyers, admmistrators, judges and legislators are engaged in clarifying the legal concepts involved in the personal, corporate and propity relations which a pioneering generation of agricultural cooperators have created by their new commercial practice called cooperative marketing.

Prohibiting Advertising On Walls And Buildings Under The Police Power, W. Gordon Stoner

Articles

There have been many unsuccessful attempts by city authorities of late to abolish or prevent unsightly billboards and advertising. In a recent case A was arrested and fined for violating a city ordinance prohibiting the display of advertising matter on walls and buildings within the city without the consent of the city council. On refusal to pay the fine A was held in the custody of the city marshal, and brought habeas corpus to secure his release. The court held that the affidavit charged no violation of the ordinance unless it were construed as prohibiting the painting of any sign …

Note And Comment, John R. Rood, Henry M. Bates, Werner W. Schroeder, Robert E. Richardson, Hollace M. Reid

Michigan Law Review

Can a Manufacturer be Compelled to Sell? - The fight for price maintenance is not yet completely settled, despite, the decisions in Dr. Miles Medical Company v. Parks & Sois Company, and Baiter & Cie v. O'Donnell, which held invalid contracts, whether nominally of agency, or of sale, between manufacturer and wholesaler or jobber whereby the latter in purchasing agreed himself to maintain and to sell only to others who would maintain a schedule of prices established by the manufacturer. But there are more ways than one of maintaining prices. One of these is to refuse to sell to persons …

Recent Important Decisions, Michigan Law Review

Michigan Law Review

Attorney and Client--Lien--Settlement Pending Judgment; Bankruptcy--discharge--Liability Absolutely Owing; Bankruptcy--Partnership--Individual Estate of a Partner; Banks and Banking--Checks on Trust Funds--Deposit to Personal Account of Trustee--Liability of Bank; Banks and Banking--Deposit Slip Headed by Mistake in Another's Name--Bankbook Does not Control; Constitutional Law--freedom To Contract--Master and Servant--Regulating Hours of Service; Constitutional Law--Interstate Commerce--solicitation of Orders for Sale of Intoxicating Liquors; Criminal Law--Offenses by Drivers of Automobiles; Damages--Extent of Liability on Replevin Bond; Damages--What may be Considered in Mitigation in Action for Libel; Deeds--Delivery--Grantee's Name Blank; Equity--Injunction to Restrain Cutting of Timber--Policy of State; Federal Procedure--Removal of Causes--Fraudulent Joinder; Gaming--"Bookmaking"--Oral Bets; Garnishment--Set-off of …

Recent Important Decisions, Michigan Law Review

Michigan Law Review

Bankruptcy--Trustee's Right to Enforce Stockholder's Statutory Liability; Bills and Notes--Failure of Consideration--When Maker is Estopped From Pleading It; Bills and Notes--Instrument Payable After Death--Whether Valid Obligation or of a Testamentary Character; Carriers--Interstate and Intrastate Commerce; Carriers--Regulations Relative to Shipment of Live Stock; Constitutional Law--Equal Protection of Laws--Foreign Corporations--Statute Forfeiting Right to Do Business; Constitutional law--Police Power--Personal Liberty--Photographing Persons Charged With Crime; Contempt--Murder of Prisoner Pending His Appeal; Counties--Action by Taxpayer--Compensation of Attorney; Criminal Law--What Constitutes a Disorderly House; Damages--Allowance of Attorney's Fees--rule in Hadley v. Baxendale Applied; Eminent Domain--Taking or Damaging Property--Noise and Smoke From Operation of Railroad; Equity--Illegal Contract--Duty …

Note And Comment, Edward S. Rogers, Horace Lafayette Wilgus, Edward A. Macdonald, Floyd Olds, J. Fred Bingham, Michael F. Shannon, Sidney F. Duffey

Michigan Law Review

The Doctrine of Unfair Trade; Valuing Property and Franchises of Public Service Corporations for Fixing Rates; Right of the Interstate Commerce Commission to Adduce Testimony; Rule in Shelley's Case controls Estate Created by Deed to Trustee; The Right of the Garnishee to Dispose of Goods in His Possession While the Litigation is Pending; The Police Power, Billboards and Sky Signs; How Far the Record of Voting Machines is Conclusive;

Note And Comment, Henry M. Bates, Harry B. Hutchins, Ralph E. Jenney, Charles L. Dribble, Charles H. L'Hommedieu

Michigan Law Review

Internal Revenue Tax on State Dispensaries Upheld; What is the Practice of Medicine?; Appeals from Decrees for Costs; The Hearst Election Contest; The Lapse of a Legacy to a Deceased Child; Unsightly Advertisements and Billboards