1. Scoville argued that Adpacks were not investment contracts because there was no guarantee that buyers would...
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1. Scoville argued that Adpacks were not investment contracts because there was no guarantee that buyers would receive a return on their investment. Should the court have ruled in Scoville’s favor based on this argument? Explain.
2. The return on an investment in an Adpack was not based on any underlying business activity. Instead, money from new investors was used pay earlier investors. Is this a legitimate business model? Discuss.
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1 No Very few investments guarantee a return To qualify as an investment contract the investor or buyer only has to have a reasonable expectation of p...View the full answer
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