Business Law

Mark Ballelo Wk 7 assignment 41.2 Famers accommodating ( cage) interchange promissory notes to more than 1,600 people, with a total value of more than $10 million. These notes were sold as an investing program and offered following range higher than what could be obtained on savings accounts. The append that arises is that co-op filed for bankruptcy after issuing the notes and the investors were left with no bring to their coronation. Some of the investors filed suit against Ernst & Young for impingement of surgical incision 10(b) of the Securities convince dress of 1934. The judgment in this case go out be contingent upon whether or not the notes issued by Co-Op argon considered securities. The notes that are issued by Farmers Cooperative (Co-Op) are securities by definition. The notes are considered securities because they were sold as an investment contract and involved the investment of money in a common enterprise. This investment was make with the expectation of profits from the square efforts of others. Because of the amount of securities that were sold, Co-Op would be obligated to file these securities with the SEC. If they had failed to do so, and Ernst & Young were to have erroneously overlooked this fact, Ernst & Young may be liable for almost type of recovery of damages. 41.

7 Donald Hoodes, former chief decision maker officer of the Sullair Corporation, sold 6,000 shares of potbelly stove stock on July 20 for a total of $38,350. On July 31, Hoodes was terminated from his prepare of CEO and was released from the company. As part of his regular compensation, Hoodes was abl! e to defile company stock at discounted prices. On August 20, Hoodes punish a buy order for 6,000 shares of Sullair stock at $1.49 discount. Hoodes had no real non-public information at the time of the buy or sale. The corporation filed suit against Hoodes to recover the profits. Under Section 16(b) of the Securities and Exchange Act of 1934, the profits made on security transactions, by an officer,...If you involve to get a full essay, order it on our website: BestEssayCheap.com

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