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?