In this paper we begin by developing in more detail the growing but largely implicit realization that Bell's theorem is, in essence, not a test for the existence of hidden variables but, rather, for whether or not the wave function of a many-body system tends to factorize into a product of localized states of its constituent particles. If such a process of spontaneous localization actually does take place, it cannot be treated in terms of Schrödinger's equation, but requires qualitatively new kinds of laws. A possible form of these laws is indicated briefly in our paper. We show further that such laws do not fit in with our customary notions of dynamical causality but are rather examples of a different kind of relationship that may be called formal causality. An analogy is given that helps to explain more fully what is meant by formal causality. We then present our proposals concerning the parameters determining the conditions under which spontaneous localization will take place. We suggest that these are related, not to the coherence length, but rather to a critical time\(\tau _0 = \hbar /kT\), in which a system large enough to have thermal properties will undergo a change in quantum state. From our suggestion it follows that, in experimental investigations carried out thus far, we have been looking for the process of spontaneous localization in the wrong place. Some indications of what may be the right place to look for this process are given. Finally, we point out that the notion of spontaneous localization makes it unnecessary to give the measuring apparatus a fundamental role in the theory so that the measurement problem of conventional quantum mechanics disappears.