Indiana Law Review 1975-76 The Trustees of Indiana University Copyright © 1975, 1976 Indiana Laiv Reviei^ Volume 9 1975-1976 Editor^n-Chief Susanne B. Jones Indiana Review Editor Nathaniel Ruff Managing Editor John W. Boyd Article and Book Review Editors Nathaniel Ruff Michael A. Shum Bruce A. Walker Note and Development Editors Richard J. Dick John T. LaMaccMa Bruce A. Hewetson Howard D. Polsky David R. Joest Phillip A. Terry Asaoeiate Editors Tony H. Abbott Jill Brown Carolyn S. Coukos Thomas C. Doehrman Phyllis E. Hartsock Sherry F. Hinchman Douglas B. King Sandra G. Lamp Paul F. Lindemann Phyllis M. McGurk Michael L. Miner Ellen S. Podgor Richard P. Samek Paul D. Spillers Heather M. Wiske Research Staff Carl W. Grow Audrey K. Grossman David M. Hamacher Jerrilee P. SutherUn Kathryn S. Wunsch Facvlty Advisor Paul J. Galanti Indiana Lai^ Revieiv Volume 9 1975 Number 1 Copyrigrht O 1975 by the Trustees of Indlaiia University Survey of Recent Developments in Indiana Law L Foreword Stephen C. Daniel 1 A. Legislative History 2 B. Jurisdiction and Procedure 4 C. Nonattorneys as Judges 6 • D. Small Claims Dockets in Circuit and Superior Courts 7 E. Financing « 9 F. Caseloads 11 G. Public Reception 12 IL Administrative Law William E. Marsh 14 A. Scope of Judicial Review 14 B. Standing to Secure Review 20 C. Exhaustion of Administrative Remedies _„ 24 . D. Administrative Procedures . : 26 E. Municipal Corporations 29 IIL Business Associations Paul J. Galanti 33 A. Trust Fund Theory _»__ 34 B. Joint Venture Liability 40 - C. Partnership Status __. 44 D. Corporate Stock and Employment Relationships »__ 46 E. Appointment of Receiver 48 F. Securities Law Exemptions 50 G. Statutory Developments - 52 1. Business Takeover Law 52 2. Securities Law Amendments 59 3. Corporate Partnerships .___ 63 4. Not-for-Profit Corporations 65 rV. Civil Procedure and Jurisdiction . William F, Harvey 66 A. Jurisdiction and Service of Process 66 B. Pleadings and Pretrial Motions 71 C. Pretrial Procedures and Discovery 76 D. Trial and Judgment . ^„ 79 E. Appeals 89 V. Constitutional Law William A. Stanmeyer 99 A. Equal Protection 99 B. Due Process - 106 C. The First Amendment 112 The INDIANA LAW REVIEW is the property of Indiana University and la published five times yearly, December, January, March, April, and June, by the Indiana University School of Law—Indianapolis which assumes complete editorial responsibility therefor. Subscription rates: one year, $12.50; three years, $35.00; five years, $50.00; foreign, $14.00. Single copies: annual Survey Issue, $6.00; other issues, $8.50. Back issues, volume 1 through volume 8, number 1, are available from Fred B. Rothman & Co., 67 Leuning Street. South Hackensack, New Jersey 07606. Please notify us one month in advance of any change of address and include both old and new addresses with zip codes to ensure delivery of all issues. Send all correspondence to Business Manager, Indiana Law Review, Indiana University School of Law—Indianapolis, 785 West New York Street, Indianapolis, Indiana 46202. Publication office: 735 West New York Street, Indlanapoli*, Indiana 46202. Second class postage i)aid at Indianapolis, Indiana 46201. VI. Consumer Law Douglas J. Whaley 118 A. The Magnuson-Moss Warranty—Federal Trade Commission Improvement Act 119 B. The Fair Credit Billing Act 125 1. Billing Disputes 126 2. Bank Setoffs 128 3. Credit Cards 128 C. State Law Changes 130 VII. Contracts and Commercial Law Gerald L. Bepko 132 A. Statute of Frauds 132 B. Modification of Contracts 135 C. Broad Hold Harmless Clauses 136 D. Warranty 138 1. Privity—The Uniform Commercial Code 138 ^ 2. Privity—^Sale of Homes .-. . 141 3. Disclaimers . 142 4. Contributory Negligence . . 143 E. Due Process of Law and Commercial Transactions 145 F. Conversion of Checks . 148 G. Franchising . 151 1. Sales of Franchises 151 2. Franchisor's Liability for Debts of Franchisee 154 3. Franchise Termination 156 H. Quasi Contract 158 1. Mistake of Law 158 2. Recovery for "Necessaries" Furnished to Minors 159 VIII. Criminal Law and Procedure ._______TFz7Z2am A, Kerr 160 A. Search and Seizure 162 1. Necessity for Arrest Warrants . 162 2. Search Warrants , 162 3. Execution of Search Warrants „ __„ 164 4. Consent to Searches . 166 5. Stop and Frisk >_„„ 168 B. Lineups and Photographic Identifications . ^„_____ 169 1. Lineups , „ . 169 2. Photographic Identifications 170 C. Confessions and Admissions „ . .^ 171 1. Confessions __. ___, 171 2. Admissions .^ . 173 D. Self-incrimination . 174 1. Testimonial Compulsion 174 2. Grand Jury Testimony , 175 3. Immunity , 176 E. Discovery 178 F. Guilty Pleas 180 G. Assistance of Counsel 183 1. Right to Counsel 183 2. Effectiveness of Counsel 184 H. Defenses 186 1. Entrapment 186 2. Self-Defense 187 3. Insanity 189 4. Other Defenses 190 I. Sentencing 192 1. Appellate Review of Sentences 192 2. Felony Murder Sentences I93 3. Accessories and Accomplices I94 4. Criminal Sexual Deviancy I95 5. Drug Abuse Treatment 195 6. Credit for Pretrial Confinement 19G IX. Domestic Relations William Fox 197 A. Marriage 197 1. The Right to Marry 197 2. Statutory Age Requirements 199 3. Married Woman's Name 202 B. Dissolution 204 1. Financial Awards 204 2. Enforcement of Financial Awards by Contempt 209 C. Custody of Children 211 1. Change of Custody Between Natural Parents 211 2. Disputes Between Parents and Third Persons 215 3. The Use of Habeas Corpus in Custody Disputes _._ 219 4. Termination of Parental Rights in a Custody Dispute 220 D. Child Support 222 1. College Expenses 222 2. Uniform Reciprocal Enforcement of Support Act 223 E. Child Neglect and Abuse 225 F. Parental Control of Medical Treatment 227 G. Parental Tort Immunity _.-_ 229 H. Waiver of Juveniles to Criminal Court , 232 I. Paternity „ „„— 234 J. Guardianship . 236 X. Evidence William Marple 239 A. Hearsay . __„_— 239 1. Prior Inconsistent Statements . , _-_ 239 2. Admissions of a Party 242 3. State of Mind Exception . —___ 244 B. Opinions and Expert Testimony „ _. 245 C. Privilege —__ 247 D. Original Document Rule „ - 248 E. Demonstrative Evidence 1. -. 249 - 1. Tape Recordings -- 249 2. Scientific Evidence 251 3. Bodily Invasions 252 4. Photographs — _ 253 5. Chain of Custody . . -. ., 255 6. Polygraph Tests 256 F. Impeachment 259 XL Insurance G. Kent Frandsen 260 A. Punitive Damages -- 260 B. Judicial Constructions of Policy Provisions 262 1. Notice "As Soon as Practicable" 262 2. Pre-existing Conditions Clause 263 C. Stacking of Benefits . 265 D. Statutory Developments 267 XII. Products Liability John F. Vargo 270 A. Privity 272 B. Defect and Stream of Commerce 274 C. Circumstantial Evidence 275 D. Contributory Negligence 278 XIII. Professional Responsibility Charles D. Kelso 281 A. Community Standards and Code Standards: Is the Boat Starting to Rock? 281 B. Recent Indiana Decisions on Attorney Discipline 2S6 1. Flexibility of Sanctions 286 2. Inadequate Representation 288 3. Authorization for Attorney's Actions 290 C. Discipline of Judges . — 290 D. Academic Developments 293 XIV. Property 294 XV. Real Estate Settlement Procedures Act of 1974 Sheila Suess 299 A. Covered Transactions 300 B. The Law and the Mortgage Lender 301 C. Prohibited Acts 304 D. Penalties ^. 304 XVI. Secured Transactions and Creditors* Rights —R. Bruce Townsend 305 A. Security Interests in Real Property 305 1. Priorities—Bona Fide Purchaser; Possession as Notice 305 2. Vendor's Lien 307 3. Mortgage Foreclosure and Redemption Period 309 4. Outright Deed as Equitable Mortgage 311 6. Subordination Agreement 312 6. Conditional Sales Contracts 813 7. Deed in Consideration of Support . 313 B. Security Interests in Personal Property 314 1. Motor Vehicles 314 2. Assignment of Wages 315 3. Security Interests in Feedlot Operations 316 4. Special Assessment Liens 319 5. Barrett Bonds _ 319 C. Creditors' Rights and Involuntary Liens 320 1. Attachment and Garnishment . 320 2. Receiverships . 324 8. Bankruptcy 325 4. Artisans' Liens . 326 5. Mechanics' Liens 328 6. Fraudulent Conveyances 333 7. Miscellaneous 334 XVII. Taxation 336 XVIIL Torts James J. Brennan MO A. Tort V. Contract 340 B. Malicious Prosecution 341 C. Premises Liability 342 D. Reasonable Care 348 E. Proximate Cause 352 F. Damages 354 G. Medical Malpractice 358 1. Limitations on Recovery 359 2. Medical Review Panel 361 3. Settlement Procedure 363 4. Litigation 366 5. Policing the Health Professions 366 6. Risk Manager 367 7. Constitutionality 368 XIX. Trusts and Decedents' Estates Melvin C. Poland 371 A. Case Developments 371 1. Will Contests 371 2. Nonprobate Assets 373 3. Equitable Adoption 375 B. Legislative Developments 377 1. Self-proved Wills 380 2. Homestead, Widow's, and Family Allowances 381 3. Renunciation 382 4. Unsupervised Administration 383 5. Bond Requirements 388 6. Appraisement of Property 389 XX. Workmen's Compensation 389 A. Routine Course of Employment - 389 B. Willful Employee Misconduct 392 C. Aggravation . 393 The REVIEW invites the submission of unsolicited manuscripts. Such manuscripts cannot be returned except upon receipt of postage and handling fees of 50^ for third class mail and $2.50 for first class mail. Indiana Universsiiy School of Law—-Indianapolis 1975-1976 ADMINISTRATIVE OFFICERS AND FACULTY John W. Ryan, Ph. D., President of the University Glenn W. Irwin, Jr., M.D., Vice President of the University William F. Harvey, LL.M., Dean, Indiana University School of Law—Indian- apolis G. Kent Frandsen, J.D., Assistant Dean, Indiana University School of Law— hidianupolis Thomas B. Allington, LL.M. (New York University, 1971), Professor Edward P. Archer, LL.M. (Georgetown University, 1964), Professor Charles W. Ardery, Jr., LL.B., (University of Michigan, 1957), Adjunct Professor James F. Bailey, III, J.D., M.A.L.S. (University of Michigan, 1964, 1970), Director of Library and Associate Professor Agnes Barrett, J.D. (Indiana University, 1964), Associate Professor Gerald L. Bepko, LL.M. (Yale University, 1972), Professor Bernard J. Boyle, LL.D. (DePaul University, 1949), Lecturer Clyde H. Crockett, LL.M. (The London School of Economics, 1972), Asso- ciate Professor Robert F. Dugan, M.C.L. (University of Chicago, 1969), Associate Professor Cleon H. Foust, J.D. (University of Arizona, 1933), Professor G. Kent Frandsen, J.D. (Indiana University, 1965), Assistant Dean and Associate Professor David A. Funk, LL.M. (Columbia University, 1973), Associate Professor Paul J. Galanti, J.D. (University of Chicago, 1963), Professor John J. Gallagher, J.D. (Cornell University, 1972), Assistant Professor Alan H. Goldstein, J.D. (Indiana University, 1969), Adjunct Professor John S. Grimes, J.D. (Indiana University, 1931), Professor of Jurisprudence Jeffrey W. Grove, J.D. (George Washington University, 1969), Associate Professor William F. Harvey, LL.M. (Georgetown University, 1961), Dean and Pro- feasor Lawrence A. Jbxsen, III, LL.M. (New York University, 1963), Pt^fessor William R. Jones, LL.M. (University of Michigan, 1970), Associate Pro- fessor (on leave 1975-76) Charles D. Kelso, J.S.D. (Columbia University, 1968), Professor William A. Kerr, LL.M. (Harvard University, 1958), Professor Judith T. Kirtland, J.D. (Indiana University, 1974), Lecturer Walter W. Krieger, Jr., LL.M. (George Washington University, 1969), As- sociate Professor William E. Marsh, J.D. (University of Nebraska, 1968), Associate Professor Patrick Mulvaney, J.D. (Georgetown University, 1970), Assistant Professor Melvin C. Poland, LL.M. (University of Michigan, 1950), Professor Ronald W. Polston, LL.B. (University of Illinois, 1958), Professor Judith S. Profpitt, J.D. (Indiana University, 1971), Lecturer Marshall J. Seidman, LL.M. (Harvard University, 1970), Professor Charles G. Reeder, J.D. (Indiana University, 1965), Lecturer William A. Stanmeyer, J.D. (DePaul University, 1966), Associate Professor Kenneth M. Stroud, J.D. (Indiana University, 1961), Assistant Professor James W. Torke, J.D. (University of Wisconsin, 1968), Associate Professor R. Bruce Townsend, J.D. (University of Iowa, 1940), Professor of Juris- prudence Douglas J. Whaley, J.D. (University of Texas, 1968), Professor James P. White, LL.M. (George Washington University, 1959), Professor (on leave) Harold R. Woodard, J.D. (Harvard University, 1936), Professorial Lecturer