Questions from Business Law

Q: David Gain is the chief executive officer (CEO) of Forest

David Gain is the chief executive officer (CEO) of Forest Media Corp., which is interested in acquiring RS Communications, Inc. To initiate negotiations, Gain meets with RS’s CEO, Gill Raz, on Friday,...

Q: Matrixx Initiatives, Inc., makes and sells over-the-

Matrixx Initiatives, Inc., makes and sells over-the-counter pharmaceutical products. Its core brand is Zicam, which accounts for 70 percent of its sales. Matrixx received reports that some consumers h...

Q: Dodona I, LLC, invested $4 million in two securities

Dodona I, LLC, invested $4 million in two securities offerings from Goldman, Sachs & Co. The investments were in collateralized debt obligations (CDOs). Their value depended on residential mortgage-ba...

Q: Three shareholders of iStorage sought to sell their stock through World Trade

Three shareholders of iStorage sought to sell their stock through World Trade Financial Corp. The shares were restricted securities—that is, securities acquired in an unregistered, private sale. Restr...

Q: Big Apple Consulting USA, Inc., provided small publicly traded companies

Big Apple Consulting USA, Inc., provided small publicly traded companies with a variety of services, including marketing, business planning, and Web site development and maintenance. CyberKey Corp. so...

Q: Redford is a seller of electric generators. He purchases a large

Redford is a seller of electric generators. He purchases a large quantity of generators from a manufacturer, Mallon Corp., by making a down payment and signing an agreement to pay the balance over a p...

Q: Melvin Lyttle told John Montana and Paul Knight about a “Trading

Melvin Lyttle told John Montana and Paul Knight about a “Trading Program” that purportedly would buy and sell securities in deals that were fully insured, as well as monitored and controlled by the Fe...

Q: Nick Sabol, doing business in the recording industry as Sound Farm

Nick Sabol, doing business in the recording industry as Sound Farm Productions, applied to Morton Community Bank for a $58,000 loan to expand his business. Besides the loan application, Sabol signed a...

Q: Cathy Coleman took out loans to complete her college education. After

Cathy Coleman took out loans to complete her college education. After graduation, Coleman was irregularly employed as a teacher. Eventually, she filed a petition in a federal bankruptcy court under Ch...

Q: What policy is served by the law that employers do not own

What policy is served by the law that employers do not own the copyrights for works created by independent contractors (unless there is a written “work for hire” agreement)