Because securities can be easily manipulated by issuers, federal and state governments have strongly regulated the issuance
Question:
1. This case is an example of the need for government regulation.We want the government to protect citizens from cases such as Jessica's buying stock in a bankrupt company. If we want governmental protection from potentially shady businesses, what ethical norm are we emphasizing?
Clue: Put yourself in Jessica's place.Why would you want governmental protection? Now match your answer to an ethical norm listed in Chapter 1. Think about which ethical norm businesses would emphasize.
2. Jessica wants to sue Buy-It-Here for misrepresentation. Before she brings her case, what additional information do you think Jessica should discover?
Clue: What additional information do you want to know about the case? Even without having extensive knowledge about securities, you can identify areas in which you might need more information about Jessica's case. For example, pay close attention to the role of the telephone caller.
3. Jessica did some research about securities cases in her state. She discovered a case in which a woman named Andrea Stevenson had purchased $100,000 worth of stock from a stockbroker. The company went bankrupt three months later. The stockbroker had known that the company was suffering financial problems, but had said nothing to Andrea. The jury in this case found in favor of Andrea. Jessica wants to use Andrea's case as an analogy in her lawsuit. Do you think that Andrea's case is an appropriate analogy?
Clue: What are the similarities between the cases? How are the cases different? Are these differences so significant that they overwhelm the similarities?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For
The Legal Environment of Business A Critical Thinking Approach
ISBN: 978-0132664844
6th Edition
Authors: Nancy K Kubasek, Bartley A Brennan, M Neil Browne
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