Questions from Business Law

Q: Dirks was an officer of a New York broker-dealer firm

Dirks was an officer of a New York broker-dealer firm who specialized in providing investment analysis of insurance company securities to institutional investors. On March 6, Dirks received informatio...

Q: Texas Gulf Sulphur Company (TGS) was a corporation engaged in

Texas Gulf Sulphur Company (TGS) was a corporation engaged in exploring for and mining certain minerals. A particular tract of Canadian land looked very promising as a source of desired minerals, and...

Q: W. J. Howey Co. and Howey-in-

W. J. Howey Co. and Howey-in-the-Hills Service, Inc., were Florida corporations under direct common control and management. The Howey Company owned large tracts of citrus acreage in Florida. The servi...

Q: Calvin purchased a log home construction kit, manufactured by Boone Homes

Calvin purchased a log home construction kit, manufactured by Boone Homes, Inc., from an authorized Boone dealer. The sales contract stated that Boone would repair or replace defective materials and t...

Q: Bigelow Corporation has total assets of $850,000, sales

Bigelow Corporation has total assets of $850,000, sales of $1,350,000, and one class of common stock with 375 shareholders and a class of preferred stock with 250 shareholders, both of which are trade...

Q: Capricorn, Inc., is planning to “go public” by

Capricorn, Inc., is planning to “go public” by offering its common stock, which previously had been owned by only three shareholders. The company intends to limit the number of purchasers to twenty-fi...

Q: The boards of directors of DuMont Corp. and Epsot, Inc

The boards of directors of DuMont Corp. and Epsot, Inc., agreed to enter into a friendly merger, with DuMont Corp. to be the surviving entity. The stock of both corporations was listed on a national s...

Q: Farthing is a director and vice president of Garp, Inc.,

Farthing is a director and vice president of Garp, Inc., whose common stock is listed on the New York Stock Exchange. Farthing engaged in the following transactions in the same calendar year: on Janua...

Q: Intercontinental Widgets, Inc., had applied for a patent for a

Intercontinental Widgets, Inc., had applied for a patent for a new state-of-the-art widget that, if patented, would significantly increase the value of Intercontinental’s shares. On September 1, the P...

Q: Nova, Inc., sought to sell a new issue of common

Nova, Inc., sought to sell a new issue of common stock. It registered the issue with the SEC but included false information in both the registration statement and the prospectus. The issue was underwr...