1. This 3-part test is known as the Howey test, and is still used to define an investment today. A key element in Howey’s defense was that he was not the sole provider of these service contracts; in fact, the lessor of the land could choose anyone to service it. Why was this defense not successful?
2. What evil was inherent in what Howey was doing? What was the SEC trying to do in requiring registration of this investment contract?
3. In a recent case, Davis v. Chase, 453 F. Supp.2d 1205 (C.D. Ca. 2006), the court ruled that a credit card was not a security, even though the plaintiff argued that it was an interest that has financial value. What part of the Howey test does a credit card fail to meet?