Indiana Law Review Indiana Law Review Volume 10 1976-1977 Editor-in-Chief Lynn Brundage Indiana Survey and Articles Editors J. Randall Aikman Audrey K. Grossman Joan Godlove Kathryn S. Wunsch Managing Editors Brian W. Bell Brian S. Schuster Note and Development Editors Barbara S. Banks Mark A. Pope Barbara Brighann Stephen J. Spoltman Jack E. Roebel Philip C. Thrasher Associate Editors Douglas J. Atz Eric Santo Thomas D. Blackburn Charlotte Squarcy Phyllis McGurk David L. Swider Marian Meyer Gregory A. Troxell Stephen R. Nelson Stephen E. Zlatos Faculty Advisor Paul J. Galanti Distriets of the Indiana Court of Appeals LAPORTE 1ST. JOSEPH PORTER NEWTON JASPER WHITE SEMON WARflEN TIPPE- CANOE MARSHALL 3 ELKHART LAGRANGE KOSCIUSKO NOBLE STEUBEN DEKALB WHITLEY JALLEN CARROL'. 1 clinTon' HUNTING- TON WELLS hOaARO \l 2 TIPTON BOONE VIGC CLAY HENDRICKS PUTNAM rfARION IHANCOCK SHELBY ADAMS BLACK- JAY FORD DELAWARE HENRY RANDOLPH U5h DECATUR WAYNE FAYETTT Indiana Laiiv Revieiiv Volume 10 1976 Number 1 Copyright © 1976 by the Trustees of Indiana University Survey o€ Recent Developments in Indiana Laiv I. Foreword William A. Kerr 1 A. General Substantive Provisions (Article 41) 2 1. Culpability 2 2. Defenses 3 3. Bars to Prosecution 10 4. Offenses of General Applicability 11 B. Offenses Against the Person (Article 42) 18 1. Homicide IS 2. Battery and Related Offenses 16 3. Kidnapping and Confinement 18 4. Rape 19 5. Unlawful Deviate Conduct 19 6. Child Molesting 20 C. Offenses Against Property (Article 43) 20 1. Arson and Mischief 20 2. Burglary and Trespass 21 3. Robbery 22 4. Theft and Conversion 23 5. Forgery 24 D. Other Offenses 24 1. Bribery and Official Misconduct 24 2. Perjury 25 3. Assisting a Criminal 25 4. Disorderly Conduct 26 5. Bigamy 26 6. Contributing to the Delinquency of a Minor 26 7. Controlled Substances 27 E. Sentencing (Article 50) 27 1. Sentencing Authority 27 2. Determinate Sentencing 28 3. Definition of Offenses 29 4. Habitual Offenders 31 5. Concurrent Sentencing 32 6. Probation 32 7. Parole 33 F. Conclusion 34 Th« INDIANA LAW REVIEW is the property of Indiana University and is pablished five times yearly, December. Jantiary, March. April, and June, by the Indiana University School of Law—Indianapolis which assnmea complete editorial reaponaibility therefor. Snbscription rates: one year. 112.SO: three years. S35.00; five years, S50.00: foreign. $14.00. Sinjfle copies: annnal Survey Issue. $6.00: other issues. $8.50. Back issues, volume 1 thronirh volume 8. number 1. are available from FVed B. Bothman & Co.. B7 Leunlntr Street, South Haelcensack. New Jersey 07R06. Please notify us one month in advance of any ehanee of address and include both old and new addresses with rip codes to "Tj^Tire deliverv of all issues. Send all correspondpnre to Business Mannerer, Indiana Law Bpview. Indians TJniversitv Sfbool of Lnw—TndiannnoHs. 73 R West Ne-w York Street. Tn»»?>!napol?s. Indiana 4fi?02. Publication offire: 73B Wp9t New York Street, Indianapolis. Indiana 46202. Second class postage paid at Indianapolis, Indiana 4«?201. II. Administrative Law Lewis A. Shaffer 37 A. Scope of Judicial Review 37 B. Findings of Fact 40 C. Exhaustion of Administrative Remedies 43 D. Standing To Secure Judicial Review 46 E. Due Process 48 F. Municipal Corporations 54 III. Business Associations Paul J. Galanti 57 A. Restraint of Trade 58 B. Securities Law Fraud 67 C. Securities Act Exemptions and Defenses 76 D. Preincorporation Contracts and the De Facto Doctrine 79 E. Statutory Developments 85 IV. Civil Procedure and Jurisdiction William F. Harvey 88 A. Jurisdiction and Service of Process 88 B. Pleadings and Pretrial Motions 96 C. Pretrial Procedures and Discovery 101 D. Trial and Judgment 105 E. Appeals 116 V. Constitutional Law William E, Marsh 124 A. Federalism 124 B. Trial by Jury 129 C. Equal Protection 130 1. Classification Based on Sex 130 2. Classic Low Scrutiny for Economic Classification 132 3. Indiana's Guest Statute 133 D. Substantive Due Process 136 E. Free Speech 137 F. Zoning 139 VI. Consumer Law David W. Gray 142 A. Statutory Developments 143 1. Amendments to the Equal Credit Opportunity Act 143 2. Consumer Leasing Act of 1976 144 3. Consumer Goods Pricing Act of 1975 145 B. Case Law Developments 147 VII. Contracts and Commercial Law Gerald L. Bepko 151 A. FTC Rule on Preservation of Consumer Defenses 151 B. Remedies For Breach of Contract 158 1. Liquidated Damages 158 2. Punitive Damages 160 3. Rejection and Revocation of Acceptance 164 4. Proof of Damages Under UCC Section 2-714 166 C. Employee Termination 167 D. Broad Form Indemnity 171 E. Conditional Payment Terms in Subcontracts 172 VIII. Criminal Law and Procedure John B, WilsoUy Jr. 174 A. Search and Seizure 174 B. Confessions and Admissions 179 1. Voluntariness 179 2. Miranda Rights 180 C. Discovery Igg D. Jurisdiction—Juvenile Waiver 189 E. Pretrial Proceedings 190 1. Grand Jury 190 2. Right to Counsel and Probable Cause 1&2 3. Bail 192 4. Criminal Rule 4—Early Trial 193 5. Criminal Rule 12—Change of Judge 196 F. Trial 196 1. Right to Counsel 195 2. Right to Be Present at Trial 196 3. Presumption of Innocence 196 4. Jury Venire and Voir Dire 196 5. Opening Statements 197 6. Evidence 197 7. Judgment on the Evidence 202 8. Defenses 202 9. Final Arguments 204 10. Jury Instructions 204 11. Juror Misconduct and Sequestration 206 G. Sentences 207 H. Probation and Parole 209 IX. Domestic Relations Judith S. Proffitt 211 A. Adoption and Guardianship of Minors 211 B. Paternity 215 C. Dissolution of Marriage 217 1. Service of Summons 217 2. Irretrievable Breakdown 218 3. Defenses 219 4. Child Custody 220 5. Temporary Maintenance 221 6. Financial Awards 222 X. Evidence William Marple 236 A. Impeachment 236 B. Original Document Rule 239 C. Judicial Notice 241 XI. Insurance G. Kent Frandaen 243 A. Punitive Damages 243 B. Insurable Interest 246 C. Casualty Insurance 248 1. The Omnibus Clause 248 2. Actions for Loss of Consortium Under UMC 262 3. Duty to Discover Errors in Application 253 D. Life Insurance Conditional Receipt 255 XII. Labor Law Edward P. Archer 257 XIIL Products Liability ..John F. Vargo 266 A. Introduction 266 B. Strict Liability in Tort 269 C. Enterprise Liability 269 1. First Approach 271 2. Second Approach 273 D. Causation 277 E. Patent Danger 279 XrV. Professional Responsibility Charles D. Kelso 283 A. Enforcement of the Code 283 1. General Policy 283 2. Conflict of Interest; Public Reprimands Ordered in Multiple Client Cases 285 3. Sanctions More Severe Than Reprimand 280 B. Professional Responsibility Problems in Criminal Cases __ 290 1. Claims of Incompetent Counsel 290 2. Behavior of Prosecutor and Judge 2^2 C. Amendments to the Code of Professional Responsibility and to Disciplinary Rules ^4 XV. Property Ronald W. Polston 297 A. The Right of Remote Vendee To Recover on the Implied Warranty of Habitability of a Builder-Vendor 299 B. Landlord and Tenant Relationships 302 C. Liability for Interference with the Flow of Surface Waters 307 D. Survivorship Rights in Personal Property Held by Joint Tenants XVI. Secured Transactions and Creditors* Rights B. Bruce Totunsend 310 A. Recording Statutes: Recording Contracts Affecting Persons Tapping into Municipal Sewers „ 310 B. Mortgages—Effect of Security Furnished by Third Party __ 312 C. Foreclosure Procedures—Real Estate 313 1. Mortgage Foreclosure SIS 2. Conditional Sales Contracts 314 D. Perfection of Security Interests Under the Uniform Com- mercial Code 316 E. Equipment Leases 317 F. Maturity and Discharge of Security Interest; Subordination of Security 31« G. Remedies of Secured Party Under Article 9 of the Uniform Commercial Code 319 H. Mechanics' Liens on Real Estate 322 I. Artisans' Liens 328 J. Proceedings Supplemental to Execution—Right to Notice and Hearing 331 K. Creditors' Rights Against Decedents' Estates 333 L. Bankruptcy 336 M. Miscellaneous—Attorney's Fees; Truth in Lending Dis- closures 338 XVIL Taxation Thomas B, Allington 340 A. Death Taxes 340 1. Recodification 340 2. Deduction for Allowance to Surviving Spouse or Depend- ent Children 340 3. Exemption for Charitable Transfers • 341 B. Income Taxes 346 1. Gross Income Tax—Exemptions 346 2. Adjusted Gross Income Tax—'Criminal Offenses 346 3. Credit for Investments in Neighborhood Assistance Pro- grams in Impoverished Areas 347 4. Motor Fuel Tax Credit 349 5. Occupational Income Tax Changes 349 C. Sales and Use Taxes 361 1. Exemptions 361 2. Collection Allowance 362 D. Intangibles Tax 863 1. Low Income Individuals 363 2. Deposits in Credit Unions 354 E. Property Tax 356 1. Easements 356 2. Leasehold Interests 366 3. Property in Interstate Commerce 357 4. Valuation of Real Property 359 XVIII. Torts James J. Brennan 360 A. Limitations on Duty 360 1. The Guest Statute 360 2. Premises Liability 363 3. Sovereign Immunity 369 4. Medical Malpractice 378 B. Breach of Duty 383 C. Proximate Cause 386 D. Vicarious Liability 388 E. Damages 390 XIX. Trusts and Decedents* Estates Melvin C. Poland 392 A. Case Developments 392 1. Claims Against Decedents' Estates 392 2. Constitutionality of Family Protection Statute 396 B. Legislative Developments 309 XX. Workmen's Compensation 407 A. Procedural Aspects 407 B. Employee Conduct and Judicial Review 409 Table of Cases 418 Indiana University School of La^v-—Indianapolis 1976-1977 ADMINISTRATIVE OFFICERS AND FACULTY John W. Ryan, Ph. D., President of the University Glenn W. Irwin, Jr., M.D., Vice President of the University WHiLiAM F. Harvey, LL.M., Dean, Indiana University School of Law—Indian^ apolis G. Kent Frandsen, J.D., Assistant Dean, Indiana University School of Law— Indianapolis 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 Kenneth P. Cohen, LL.M. (Yale University, 1976), Assistant Professor Clyde H. CROCKE-rr, LL.M. (The London School of Economics, 1972), Asso- ciate Professor Robert F. Dugan, M.C.L. (University of Chicago, 1969), Associate Professor (on leave, 1976-77) Debra a. Falender, J.D. (Indiana University, 1975), Assistant Professor Cleon H. Foust, J.D. (University of Arizona, 1933), Professor (on loan, 1976-77) G. Kent Frandsen, J.D. (Indiana University, 1965), Assistant Dean and Associate Professor David A. Funk, LL.M. (Columhia University, 19V3), Professor Paul J. Galanti, J.D. (University of Chicago, 1963), Professor Helen P. Garfield, J.D. (University of Colorado, 1967), Associate Professor Alan H. Goldstein, J.D. (Indiana University, 1&69), Lecturer John S. Grimes, J.D. (Indiana University, 1931), Professor of Jurisprudence JEIFFREY W. Grove, J.D. (George Washington University, 1969), Associate Professor William F. Harvey, LL.M. (Georgetown University, 1961), Dean and Pro- fessor Lawrence A. Jegen, III, LL.M. (New York University, 1963), Professor William R. Jones, LL.M. (University of Michigan, 1970), Associate Pro- fessor (on leave 1976-77). Charles D. Kelso, J.S.D. (Columbia University, 1968), Professor William A. Kerr, LL.M. (Harvard University, 1958), Professor 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 Gary A. RaTner, LL.M. (Yale University, 1974), Associate Professor Charles G. Reeder, J.D. (Indiana University, 1966), Lecturer Marshall J. Seidman, LL.M. (Harvard University, 1970), Professor William A. Stanmeyer, J.D. (DePaul University, 1966), Associate Professor Kenneth M. Stroud, J.D. (Indiana University, 1961), Associate 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 James P. Wnrrs, LL.M. (George Washington University, 1959), Professor (on leave) Harold R. Woodard, J.D. (Harvard University, 1936), Professorial Lecturer Judges of the Indiana CJonrts Indiana Supreme Court Richard M. Givan, Chief Justice Norman F. Arterburn Roger 0. DeBruler Donald H. Hunter Dixon W. Prentice Indiana Courl; of Appeals FIRST DISTRICT Jonathan J. Robertson, Chief Judge Joe W. Lowdermilk Robert B. Lybrook SECOND DISTRICT Patrick D. Sullivan, Presiding Judge Paul H. Buchanan, Jr. Charles S. White THIRD DISTRICT Robert H. Staton, Presiding Judge William I. Garrard George B. Hoffman United States District Courts NORTHERN DISTRICT OF INDIANA Jesse E. Eschbach, Chief Judge Allen Sharp Robert A. Grant, Senior District Judge SOUTHERN DISTRICT OF INDIANA William E. Steckler, Chief Judge S. Hugh Dillin Cale J. Holder James E. Noland Districts of tlie Indiana Court of Appeals ST. JOSEPH ELKHART LAGRANGE STEUBEN NOBLE DEKALB /