The Legal Environment of Business: Text and Cases (MindTap Course List)
10th Edition
ISBN: 9781305967304
Author: Frank B. Cross, Roger LeRoy Miller
Publisher: Cengage Learning
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Chapter 23, Problem 4RE
Summary Introduction
Case summary:The SEC prohibits insider trading through the statutory provisions only when the monetary benefit is earned by the insider for himself. The SEC decided to amend the law and the action can be brought even when there is no monetary benefit to insiders. The commission did not follow the procedure of rulemaking and simply announced the law. An objection against the law was brought by a stock brokerage firm on the ground that the rule was made without giving any opportunity for public comments. The rule was ultimately challenged before the federal appellate court.
To find: The effect of considering the rule merely as an interpretive rule.
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Chapter 23 Solutions
The Legal Environment of Business: Text and Cases (MindTap Course List)
Ch. 23 - Assume that the Securities and Exchange Commission...Ch. 23 - Assume that the Securities and Exchange Commission...Ch. 23 - Assume that the Securities and Exchange Commission...Ch. 23 - Prob. 4RECh. 23 - Prob. 1ISCh. 23 - Prob. 2ISCh. 23 - Prob. 1BSCh. 23 - Informal Rulemaking. Assume that the Food and Drug...Ch. 23 - Rulemaking. The Investment Company Act prohibits a...Ch. 23 - Prob. 4BCP
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