Essay Question #01 (10 Points)

In May 2009, OfferMe Corporation generally advertises that it will make a $4 million offering of stock in June. OfferMe makes the offering as advertised and, ten days after the first sale, notifies the Securities and Exchange Commission (SEC). All buyers of the stock are given material information about the company, its business, and the stock. Before the end of the year, the offering is completely sold out. The buyers include forty unaccredited investors and fifty accredited investors. OfferMe does not register the offering. The SEC files a suit against OfferMe, seeking civil sanctions on the ground that this offering was not exempt from registration. OfferMe argues that the applicable exemption is Rule 505 of Regulation D of the Securities Act of 1933 and that because of this exemption, any resale of the stock is also exempt.

Who is correct? Explain thoroughly.

Essay Question #02 (10 Points)

The management of Sport Shoes Corporation, a U.S. firm, wants to expand into foreign investment and employment markets.

They are considering either opening their own production facility in a foreign country or entering into a licensing agreement with a foreign firm.

1 What are the advantages and disadvantages of each of opening its own production facility in a foreign country?

2 What are the advantages and disadvantages of entering into a licensing agreement with a foreign firm?

Essay Question #03 (10 Points)

Nosey Corporation would like to know what information federal agencies have about Noseys operations so that the firm will know what its competitors may be able to learn about it.

1 Can Nosey require the agencies to disclose whatever information they may have concerning it? Explain thoroughly.

2 If so, how should the firm make its request? Explain thoroughly.

3 What federal law applies?

4 Is any information exempt? Explain thoroughly.

Please answer each part individually, numbering/lettering which part you are responding to at the beginning.

Essay Question #04 (10 Points)

DrinkItUp Company is engaged in the soft-drink bottling and distribution industry in the states of Oklahoma and Texas. The firm currently has about 40 percent of the market for these products and related services. DistributeMe Corporation competes with DrinkItUp in the same states. DistributeMe has about 35 percent of the market.

1 If DrinkItUp were to acquire the stock and assets of DistributeMe, would DrinkItUp be in violation of any of the antitrust laws? Explain thoroughly.

2 If so, which one? Discuss fully and explain thoroughly.

Essay Question #05 (10 Points)

Olivia buys an all-terrain-vehicle (ATV) from Fun Times, Inc., on credit but makes no payments on the account. Eric, the owner of Fun Times, calls Olivia at home on a Monday morning at three a.m. Eric represents himself as PayNow Collection Agency and demands payment or else. The next day, Eric sends Olivia notice that she has thirty days in which to request verification of the debt and that its payment will be suspended during that time, but that if he does not pay the full amount due within five business days, Eric will arrange for the destruction of Olivias good credit rating.

Which laws has Eric violated, if any, and in what ways? Explain thoroughly.