Tasch Corporation, a multilevel marketing and sales organization, plans to sell approximately $10,000,000 worth of "service agreements" to many of its customers. These service agreements guarantee a set return to the customer in exchange for an up-front purchase price, with Tasch Corporation managing the various business interests of its customers. Jerry Tasch, the corporation's president, needs advice concerning the necessity of SEC filings prior to the sale of these service agreements.
Assume that the only (initial) question to be addressed is whether the service agreements constitute securities under the Securities Act of 1933. Perform research utilizing an Internet search engine to determine whether the service agreements are in fact securities. Note that courts interpret statutes and regulations, so it is often useful to look at judicial determinations to reach a conclusion. To that end, consider locating and reviewing the following case: SEC v. Calvo, 378 F.3d 1211 (11th Cir. 2004). Students can locate this case using many Web links including FINDLAW and LexisNexis. This Web link will direct the student directly to the specific opinion (http://www.ca11.uscourts.gov/ opinions/ops/200213445.pdf ).