The state of Arizona follows a merit review process of proposed ...

[mydiamond]

The state of Arizona follows a merit review process of proposed securities offerings. The Securities Division reviews proposed offerings to look for problems with fraud. This review is done in addition to the SEC review at the federal level. The state regulators have recently issued an interpretation that provides the state can stop all stock offerings of any firms doing business in Arizona - even if the stock will not be sold to Arizona residents. Can the regulators constitutionally exercise this power?

Question 2

The CISG:
 A) is the contract law of the EU.
 B) is part of GATT.
 C) was drafted by a commission of the United Nations.
 D) has been adopted in virtually every nation.

[thall411]

Answer to Question 1

In Arizona Corporation Commission v. Media Products, Inc., 736 P.2d 527 (Az. 1989), the Arizona Supreme Court said no. Such an exercise of power was preempted by federal securities laws, and Arizona could not regulate all securities offerings from its state.

Answer to Question 2

C

[mydiamond]

TYSM

[ryansturges]

Excellent