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Twenty-Five Years of Teaching Business Law, Lecture notes of Business and Labour Law

A speech given by Otto W. Hedges about his experience teaching Business Law, Real Estate Principles, and General Principles of Insurance at the University of Detroit for 25 years. He reflects on his initial attitude towards teaching Business Law and how it changed over time. He also mentions a humorous anecdote about a man who called himself a 'Counsellor' despite not passing the state bar examinations. The speech is not scholarly and is more specific to Hedges' personal experiences.

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2022/2023

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bg1
'l'WENTY-FIVE
YEARS
OF
TEACHING
BUSINESS
LAW
Otto
W.
Hedges
You
will
note
that
there
is
quite
a
difference
between
the
subjects
discussed
by
the
previous
spealcers
and
the
one
given
to
me.
The
previous
subjects
have
called
for
more
scholarly
treatment,
while
my
topic
will
permit
me
to
talk
not
on one
specific
subject
alone,
but
on a
variety
of
subjects.
How
different
will
be
the
events
of
my
paper!
While
we
have
been
listening
to
matters
of
general
reasoning,
I
fear
that
my
paper
will
be a
little
too
specific,
dealing
with
my
own
particular
experiences
a
little
too
much. However,
my
intent
is
that
even
though I
refer
a good
deal
to
my
own
particular
experience,
yet
my
auditors
may
form
some
generalizations
of
their
own, and
receive
some
profit.
Whereas you
have
agreed
with
nearly
everything
which
the
previous
speakers
have
said,
you
no
doubt
will
be
shaking
your
heads
and
disagreeing
with
me
in
some
of
the
things
I
shall
say.
I
am
thinking
particularly
of
the
authors
of
Business
Law
texts
in
my
audience,
and
there
are
quite
a few
of
them.
I
am
reminded
of
a
statement
made
by
Artemis
Quibble,
one
of
Arthur
Train's
unforgettable
characters.
Artemis
Quibble
took
a
night
law
course
somewhere
but
was
unable
to
pass
the
state
bar
examinations.
He
believed
that
after
so
much
effort
spent
on
the
study
of
law he
ought
to
cash
in
anyway.
So
he had
cards
printed
with
his
name
and
address
and
the
descriptive
word,
"Counsellor."
These
were
widely
distributed,
and
as
a
result
many
people
came
to
him
for
advice,
legal
·
and
otherwise.
One
night
a
bellhop
sent
him a
hurried
call
to
come
and
draw up
the
Will
of
a
dying
man
of
wealth
who
had
been
staying
at
the
hotel.
Artemis
states
in
his
autobiography
that
on
that
eventful
night
there
was
conferred
upon
him
the
honor
of
drawing
up
a document
that
was
to
serve
as
a
basis
of
litigation
for
the
succeeding
ten
years.
So
I
am
reminded
that
this
morning by
using
a few
"poorly
chosen" words I
can
throw
this
orderly
meeting
of
thoughtful
legal
writers
into
an
uproar
of
controversy,
which I hope
shall
not
be
the
result.
With
your
trained
controlled
minds you
will
no
doubt
say,
"Let
him
talk.
He
is
at
least
entitled
to
his
own
opinion."
After
being
given
this
topic
to
discuss,
I
began
to
take
inventory
of
myself and what I had done
over
the
past
25
years.
I
asked
myself
whether
I was
satisfied
with
what I
had
achieved.
Today,
as
25
years
ago,
I
am
teaching
at
the
University
of
Detroit
and
teaching
Business
Law
with
two
other
subjects
thrown
in
for
good measure -
Real
Estate
Principles
and
General
Principles
of
Insurance.
Today, I
find
myself
teaching
Business
Law
with
even
more
enthusiasm
than
in
1930.
In
1930 I was
inclined
more
to
treat
teaching
Business
Law
as
a
secondary
matter,
putting
the
main emphasis on
the
practice
of
law.
I
expected
ultimately
to
break
away from
teaching
Business
Law.
Those days
of
1930 were
dark days
for
the
average
lawyer
in
his
practice.
To
be
able
to
teach
Business
Law
on
the
side
was
worth
much
to
the
lawyer
just
getting
a good
start
.
My
office
was
in
the
Hammond
Building
just
across
from
the
City
Hall
in
Detroit
and
within
easy
walking
distance
of
the
downtown campus
of
the
University
of
Detroit
located
on
Jefferson
Avenue.
pf3
pf4
pf5

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'l'WENTY-FIVE^ YEARS^ OF^ TEACHING^ BUSINESS

LAW Otto W. Hedges You^ willnotethat^ there^ isquitea^ difference

betweenthe^ subjects discussed^ by^ the^ previous^ spealcers^ and

the^ one^ given^ tome.^ The^ previous^ subjects havecalled^ formorescholarly^ treatment,

whilemytopic^ willpermitmeto^ talk not^ on onespecific^ subject^ alone,^ but

on avariety^ of^ subjects.Howdifferent willbethe^ events^ ofmypaper!^ While

we^ have^ beenlistening^ to^ matters^ of general^ reasoning,Ifearthatmypaper

willbe alittletoospecific,^ dealing

with myownparticularexperiencesalittle

toomuch.^ However,myintentis^ that

even though Irefera^ gooddealtomyownparticular

experience,^ yetmyauditorsmay form^ somegeneralizations^ oftheirown,

andreceivesomeprofit.Whereas^ you haveagreed^ with^ nearly^ everythingwhich

the^ previous^ speakershavesaid,you nodoubtwillbe^ shaking^ your^ heads^ and

disagreeing^ withmeinsomeof^ the^ things Ishallsay.Iamthinkingparticularly

of^ the^ authorsofBusinessLawtexts^

in myaudience,andthere^ are^ quitea^ few

ofthem.Iamremindedofastatementmadeby^ Artemis^ Quibble,oneofArthurTrain's unforgettablecharacters.Artemis^ Quibble

tookanightlawcoursesomewherebut wasunabletopass^ thestatebar^ examinations.

Hebelievedthat^ afterso^ much effortspentonthestudyoflaw he^ ought

tocashin^ anyway.^ So^ he^ hadcards printed^ withhisnameandaddressand

the^ descriptiveword,^ "Counsellor."^ These werewidelydistributed,andasaresult

manypeoplecametohimfor^ advice,^ legal

andotherwise.^ One^ nightabellhop^ sent

him ahurriedcalltocomeand^ draw up theWillofa^ dyingmanofwealthwho

had^ beenstayingatthehotel.Artemis statesin^ hisautobiographythatonthat

eventful^ night^ therewasconferredupon himthehonorofdrawing^ up^ a^ document

thatwastoserve^ asabasis^ oflitigation forthesucceedingtenyears.^ So^ Iam

remindedthat^ thismorning byusinga few "poorly^ chosen"^ words^ I^ can^ throwthis

orderlymeetingofthoughtfullegal writersintoan^ uproarofcontroversy,

which I^ hopeshallnotbetheresult.

With yourtrained^ controlledminds^ youwill

nodoubtsay,^ "Let^ himtalk.Heisat leastentitledto^ hisown^ opinion."^ Afterbeing^ giventhistopic^ to

discuss,I^ beganto^ take^ inventoryof myself and what^ I^ had doneoverthepast

25 years.Iasked^ myself^ whether^ I^ was satisfiedwithwhat^ I^ hadachieved.Today,

as^25 yearsago,^ Iamteachingat theUniversityofDetroitandteaching

BusinessLawwithtwoother^ subjectsthrown in^ forgood measure^ - RealEstate^ Principles

andGeneralPrinciples^ ofInsurance.Today, IfindmyselfteachingBusinessLawwitheven^ moreenthusiasm thanin1930.In^1930 I^ wasinclined

moretotreatteachingBusinessLawas

a secondarymatter,putting^ themain emphasis on

thepractice^ oflaw.Iexpected ultimatelytobreakaway fromteaching

BusinessLaw.^ Those^ daysof^1930 were dark daysfor^ theaverage^ lawyerinhis

practice.TobeabletoteachBusiness Lawonthe^ sidewas^ worthmuchtothe

lawyerjustgettinga goodstart^ •.^ My

office wasintheHammondBuildingjustacross

fromthe^ City^ HallinDetroitandwithin easy^ walkingdistanceof^ thedowntown campus

of^ theUniversityofDetroit^ located onJeffersonAvenue.

Today,^ on^ the^ McNichols Avenue. ,. -. . campus^ of^ the^ University^ of^ Detroit^ about seven^ miles^ from^ the^ City^ Hall,^ itdoes

not^ even^ entermy^ thoughts^ to^ treat Business^ La'lv^ as^ a^ sideline.^ It^ is^ a^ very

serious^ business,^ especially^ with^ around 250 students^ inmyclasses.^ This^ year's

teaching^ load^ is^ for^ one^ reason^ or another^ heavier^ than^ usual--this^ semester

myschedule^ calls^ for^12 hours^ of Business^ Law^ and 2^ of^ Real^ Estate^ Principles.^ One^ reasonwhyteaching^ Business

Lawat^ the^ University^ of^ Detroit^ today

is a^ moreserious^ businessis^ that^ i ·n^ the past^25 years^ the^ University^ has^ become

a better^ accredited^ institutionasfaras

manyeducational^ associations^ arecon- cerned and^ has^ higher^ standards^ than^ before.

In^ the^ 1930's^ the^ University^ had^ sorre greatfootballteams,^ someofthem^ being

amongthe^ best^ in^ the^ country.^ But^ among theDetroit^ players^ oftenwereex-prizefighters

andwrestlerswhowerein^ college onlyto^ play^ footballandwhospent^ very

littletimein^ theclassroom.^ Likewise, someof^ the^ requirementsfor^ faculty^ scholarship

were^ not^ as^ high^ as^ they^ are today.^ Atthe^ University^ of^ Detroittoday,

teachingislooked^ uponas^ a^ full-time job.^ Only^ the^ otherdayinareorganization

ofour^ law^ schoolfaculty,^ several ProfessorsofLaw^ whohad^ beenwith^ the

University^ fora^ numberofyears^ resigned becausethenewDeanrequiredtheir^ entire

efforts^ inteaching,completely separated^ fromsideline^ laM·^ p;rq;ctice.^ Thissidelinelawpractice^ aspect,

I^ know,^ concernssomeofyouinmy audience.Asyoufacethe^ future,this

aspectwillhavetobefacedby youin determining^ whether^ youwillgiveyour

entiretimetothepractice^ oflawor

whether youwilldoasI^ havedone--concentrate

on^ a^ moreeffective^ presentation^ of^ legal rinciples^ to^ futurebusinessmen.^ Another

alternative^ ofcourseistoprepare yourselvesfor^ teachinginthe^ regular

Law^ School. Milton Dickersonhinted tomethata numberofmyaudiencewould be youngermen^ whowould^ notonlybeglad

toseewhat^ amanlookedlikewhohad taughtBusinessLawfor^25 years,^ but

would beonlytoo^ gladtoaskhimsome questions^ abouthislong^ experience^ with

such asubject.ThereforeI^ havejotted downa^ fewtopicsandmythoughts^ concerning

them.^ Lackoftimewillnot^ permit metodevelopthesetopics,butIshall

sayenoughtogivemygeneralposition. rThen^ the^ questionsfromtheaudienceare

inorderImaymorefullydevelopmy answers.^ Thefollowingare^ thetopics

overwhichtherehas^ beensomecontroversy overthepast^25 years.. 1.Thefunctionalasagainst

the^ conventionalapproachinthe^ teaching

of Business^ Law.I,personally,favorthe

conventionalapproach^ becausethehistory Ofthefunctionalapproachsinceitsinception

inthe^ 1920's^ has,ingeneral, otborneoutitsadvantages.Iamreferring

totheworkin^ particularof^ the llustriousNathanIsaacsof^ theGraduate

School^ ofBusinessofHarvardUniversity andthe^ splendidcontribution^ ofWm.H.

Spencer^ of^ the^ School^ ofBusinessofthe niversity^ ofChicago.^ Thestudyofa

definite,concretebodyoflegalknowledge, haracteristicof^ theconventionalmethod,

trainsthestudentmuchbetterthan tudyof^ thevague^ andscattered^ principles

oflaw^ groupedaccordingto^ business ctivity.WhenIreadthispaperinMichigan,

someoneinmyaudience^ asked^ me hetherI^ hadevertriedthe^ functional

approach--implyingthatI^ might^ be making conjecture^ not^ basedonexperience.^ Yes,

Itoldhim,^ I^ hadused^ Schaub^ &Isaacs'

eLawinBusinessProblems and I^ remember

certaincasesin^ thatbooktothisday.

-----^ --^ --------^ --------

-12- selected^ by^ the^ professor,^ along^ with^

summaries^ of^ certain^ State^ and^ Federal statutes^ also^ selected^ by^ the^ professor.

Students^ would be^ required^ to^ buy^ both text^ and^ case^ books,^ andthiswould^ not

be^ too^ great^ an^ outlay^ of^ money,^ since

three^ semesters^ are^ involved.5.^ Sections^ of^ classes^ inBusiness

Lawshould^ belimited^ strictly^ to about^35 students.Thestudents^ will

ask^ more^ questions^ and^ consequently^ learn more^ law.^ I^ saythis^ in^ spite^ ofwhat

you^ heard^ Sheldon^ Tannerof^ Pennsylvania State^ University^ say^ yesterday.^ AskProfessor

Luskof^ Indiana^ abouthis^ exper- iences^ with^ large^ classes.^ Professor^

Dillavou^ ofIllinoisdoeshis^ best^ to

have small^ classes.6.^ Tobe^ aneffective^ teacher

ofBusiness^ Law,^ aninstructorshould

have a law^ degree^ and^ should^ have^ hadseveral

yearsofexperiencein^ practicinglaw. Such^ a^ backgroundwillenable^ himto^ better

answerthemanyquestionsthathewill beasked^ duringthe^ years^ ahead.^ I^ could

not^ help^ but^ notice^ the^ finespirit^ of confidencethatRussellDecker hadin

himselfin^ his^ presentation^ yesterday. Only^ a^ lawyerwith^ court^ experience^ could

handlehimselfin^ thatway.7. One of themostimportantfactorsinthe^ successful^ teachingof BusinessLawistheenthusiasmof^ the^

Professor.Notonlymustthe^ teacher

have a^ likingandabilityfor^ legalreasoning

buthe mustdelightincarryingover

to his^ students^ the^ various^ stepsinhis^

legalreasoning,^ If,^ in^ certain^ instances, this.processismorearduous,hefeels

rewarded^ whenthe^ facesof^ his^ students lightupwithcomprehensionofthe^ point

involved.Healsoshouldbeinterested in'the^ progressof^ theslower^ mindsin

his^ class.I^ have^ foundthattheuse

ofthe theworkbook^ with^ the^ greatmassofstudents

has^ beenveryhelpful,forcing^ thelll toa moredetailedstudyofthetext.

Thisextraeffortisspentonthe^ workboo$ entirelyoutsideof^ classperiodsbythe

student^ himself,answer booksbeingmade availabletohimthathemaycheckhis

answers.^ So^ far,^ I^ have^ nevermadeit

a requirementthatthe^ studentsdotheworkbook,

buthave recommendeditsuse^ when- ever^ studentswerenotdoingwellin^ their

examinations.Theresults^ in^ better gradesnearlyalways^ wereinevidence.

Iamsayingthisin^ spite^ ofthefact thatwhentheworkbookideawasfirst

suggestedtomeIrebelled^ againstit

as beingtoo^ elementary.However,since^

nearlyallofourstudentsinthe^ School

of Commerceatthe^ Universityof^ Detroit^

are^ requiredto^ tal~e^ Business^ Law,^ whether theylikeitor^ not,^ the^ usefulnessof

a workbookinmaintaining^11 ageneralC" average^ has^ beenverynoticeable.Ialso

developthecompetitiveinstinctby postinganhonorrollaftereach^ examination.

This^ has^ producedgoodresultsfor me.^ Such^ methods,^ no^ doubt,^ seemrank

heresytosomeofyoubecauseyou have been accustomedforsolongtotheconventional

lawschoolapproachofa^ fe1~ questionsand adetaileddevelopmentof

theanswerstothose^ questions.For^ more

than^15 yearspriorto1940,^ Iusedthe

conventionalmethodwithBays'casesas

a text.Throughthevariouseditionsthis

~as^ atrulywonderfulbookof^ thefew- subjects^ type,^ coveringcontracts,agency

and employment,bailments,sales^ of Personalproperty,^ negotiable^ instruments,

partnershipandcorporations--atotal Of^ sevensubjects.^ Seven,^ comparedwith

the^19 ofAnderson,^ Pomeroy and Kumpf's

-13- Business Law--nan1ely, contracts, agency,^ employment,^ negotiable^ instruments,

per- sonal^ property,^ bailments,^ transportation,

sales^ of^ personal^ property,^ insurance, suretyship,^ partnerships,^ corporations,

real^ property,^ mortgages,^ leases,^ trusts, bankruptcy,tortsand^ crimes.While^ Iamlistingsubjects^ covered

by^ the^ different^ types^ of^ books,^ I might^ as^ well^ mention^ the^ subjects^ covered

by^ Spencer^ and^ Gillamin^ theirfunctiona

J

approachto^ BusinessLawin^ theirTextbook

ofLawand^ Business,^1952 edition. Thesesubjects^ are:The Economic^ Order,

Law-as-an^ Agencyof^ Social^ Control,^

En- forcementof^ Rights,^ Persons,^ Formsof

Civil^ Liability,TheLawofAgency,Private Property,^ TheLawin^ Relation^ to^ theMarket,

TheLawin^ Relation^ toFinance,^ The Lawin^ Relation^ toRisk^ andRisk-bearing,

TheLawin^ RelationtoLabor,^ The^ Law

and the^ Formof^ the^ Business^ Unit--12different

subjects.8. Tobe asuccessful teacher of BusinessLawonthe^ collegelevel,one should be a^ memberof^ theAmerican^ Business

LawAssociationand^ shouldattend^ as manyof^ the^ annual^ andsectionalmeetings

as^ possible.AsIlookback overthelast 25 years,someof^ the^ chief^ benefitsI^ have receivedfor^ effectiveBusiness^ Law^ teaching

havecomefrommyattendanceatthe annual^ meetingsof^ theAmerican^ Business

LawAssociation.There onerubs^ shoulders With^ the^ leadingspiritsinAmerican^ Business

Law.^ Theyare^ not^ only^ teachers^ of BusinessLawatleading^ universities,

but^ arewritersoftextsand casebooks on BusinessLaw.These^ men,^ andoccasionally

women,haveinteresting^ personalities and onereceivesadistinctbenefit^ in

the^ interchange^ ofthoughts^ withthem.Thefollowingnamesofmembersof^ the^ Associationwhohaveinfluenced

me byinterchange^ of^ thoughtandpersonal

contactoverthe^ years,cometomind:BaysofNorthwestern, notedfor^ hisscholarshipandpioneeringinBusiness Law--oneof^ theoriginalfoundersof^ the

AmericanBusinessLawAssociation.IsaacsofHarvard,notedfor hisscholarshipandhispromotj_onof^ the functionalmethodinBusinessLaw;also

aleaderintheformative^ years^ ofthis association--one^ ofthefounders.Lewis Mayersof^ the^ College^ of

the^ City^ ofNew^ York,^ for^ hisability

to write^ convincinglyonlegalsubjectsand

hisabilityto^ actasagenial^ hostto the AmericanBusinessLawAssociation,

especially^ inNew^ York^ City^ in1949.

In New^ York,^ wemembersoftheBusinessLaw

Associationexperiencedanewsenseof legaldignityaswemetinthechambers

ofthe^ lawJers^ ofNew^ York^ City^ andheard adistinguishedandportlymemberof^ the

English^ Parliamentdeliver^ hisgoodwill message^ atthefamous^ George Washington

Inn^ nearthe^ waterfront.BabbofBostonUniversity,whoworked^ sotirelesslyto^ establishapubli- cationfortheAmericanBusinessLawAssociation,

aprojectwhichdid^ notseemto make^ headwayuntilyesterday'snotable

announcement byProfessorGillamof^ the University^ ofWashington.^ Stone^ ofSyracuse,notedfor^ his

far-reachingactivityfromCalifornia

to New^ York^ andhisthoroughnessintextbook

writing.

-15- In conclusion, I may say that the^ past^25 ye^ ars^ have b^ ee^ n epoch-making.

Court^ decisions^ and^ statutory^ enactments

during^ this^ time^ have^ revolutio^ nized^

our lives.As^ wesithere^ today,^ the^ repercussions

oft he^ labor^ mo-vement^ inaug^ urate^ d

bythe^ passage^ of^ the^ National^ Labor^ Relations

Actof^1935 anditsimportant

amendment,the^ Taft-Hartley^ Act,^ and^ the

liberaldecisions^ of^ the^ U.^ S.^ Supreme Court,^ especially^ in^ the^ matter^ of^ civil

liberties,stillare^ beingfelt.^ So great^ a^ changein^ theeconomic^ and^ governmental

structure^ ofourstatesandnation has^ occurredthatonewithasolidbackground

ofeconomics^ and^ lawoften wonders^ ,,.,

,. what^ 'vill^ bethefinalend.^ However,^

throughallthischange,^ sofar,Iam

glad thatI^ have^ been^ a^ Professor^ ofBusiness

Law,^ Government^ and^ Economicsina growinguniversity,^ located^ strategically

inalarge^ city,where,^ because^ I taught^ andstudiedsuchsubjects,I^ could

havemyhand^ onthe^ pulseofa^ changing order,^ which,letus^ hope,^ mayresult^

inahigher^ typeof^ finished^ product economically,socially,andspiritually--a

veritableUtopia,ifyouplease.