This topic contains a solution. Click here to go to the answer

Author Question: Joan Kingman is listing the Schubach Farm for sale. In inspecting the property, Joan notes several ... (Read 242 times)

jlmhmf

  • Hero Member
  • *****
  • Posts: 552
Joan Kingman is listing the Schubach Farm for sale. In inspecting the property, Joan notes several sinking areas in the property. Joan is unsure of what they are.
 A) Joan need not disclose their presence because she doesn't know what they are.
 B) Joan must disclose their presence.
 C) Joan must disclose them only if the Schubachs agree.
 D) Joan need only ask the Schubachs what they are.

Question 2

Mark Hubbard has been very successful in the cattle business over a number of years. Hubbard has decided to establish a cattle program as an investment tool. He will purchase cattle with investors' money and then provide medical care, feed, and transportation on a service contract basis. The profits then will be divided proportionately among the investors. An investment company, Money Ventures, Inc, is interested in the entire offering of Hubbard's cattle program. Hubbard is unsure as to whether the securities acts apply to him. In addition, he wonders whether his venture, as structured, is exempt if the activity is within the securities acts. Should Hubbard be concerned?



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

bitingbit

  • Sr. Member
  • ****
  • Posts: 323
Answer to Question 1

B

Answer to Question 2

For the security acts to apply, a transaction must involve a security within the meaning of the acts. The way that the term security has been interpreted allows the inclusion of almost any investment instrument within the confines of the securities acts. Certainly, Hubbard's offering is not one of stocks or of bonds, but it is an offering of an investment contract causing application of the securities acts. Hubbard's operation involves: (1 ) an investment of money; (2 ) a common enterprise; and (3 ) an expectation of future profits from the efforts of others. Despite being subject to the securities acts, Hubbard should qualify for an exemption. Under SEC Regulation D, offerings of any amount made solely to accredited investors, such as an investment company, are exempt from the registration requirements of the act. Additional arguments could be made for exemption under SEC Rules 504, 505, or 506.




jlmhmf

  • Member
  • Posts: 552
Reply 2 on: Jun 24, 2018
Wow, this really help


kishoreddi

  • Member
  • Posts: 329
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

Asthma attacks and symptoms usually get started by specific triggers (such as viruses, allergies, gases, and air particles). You should talk to your doctor about these triggers and find ways to avoid or get rid of them.

Did you know?

Over time, chronic hepatitis B virus and hepatitis C virus infections can progress to advanced liver disease, liver failure, and hepatocellular carcinoma. Unlike other forms, more than 80% of hepatitis C infections become chronic and lead to liver disease. When combined with hepatitis B, hepatitis C now accounts for 75% percent of all cases of liver disease around the world. Liver failure caused by hepatitis C is now leading cause of liver transplants in the United States.

Did you know?

Signs of depression include feeling sad most of the time for 2 weeks or longer; loss of interest in things normally enjoyed; lack of energy; sleep and appetite disturbances; weight changes; feelings of hopelessness, helplessness, or worthlessness; an inability to make decisions; and thoughts of death and suicide.

Did you know?

Excessive alcohol use costs the country approximately $235 billion every year.

Did you know?

Drug-induced pharmacodynamic effects manifested in older adults include drug-induced renal toxicity, which can be a major factor when these adults are experiencing other kidney problems.

For a complete list of videos, visit our video library