Case summary: Person DG was CEO of company FMC. Company FMC was interested in acquiring company RSC. Person DG met person GR, who was the CEO of RSC to initiate the negotiations. Person DG called his brother who purchased 3,800 shares of RSC. DG conferred the deal with his father who purchased 20,000 shares of RSC. DG called his at home and brother bought 3,200 more shares. The family continued to buy shares of RSC. The bid of FMC was refused but RSC announced the merger with some other company. The price of shares of RSC rose by 30 percent.
To find: Involvement of G in insider trading.
Case summary: Person DG was CEO of company FMC. Company FMC was interested in acquiring company RSC. Person DG met person GR, who was the CEO of RSC to initiate the negotiations. Person DG called his brother who purchased 3,800 shares of RSC. DG conferred the deal with his father who purchased 20,000 shares of RSC. DG called his at home and brother bought 3,200 more shares. The family continued to buy shares of RSC. The bid of FMC was refused but RSC announced the merger with some other company. The price of shares of RSC rose by 30 percent.
To find: Requirements for imposing sanctions under insider trading.
Case summary: Person DG was CEO of company FMC. Company FMC was interested in acquiring company RSC. Person DG met person GR, who was the CEO of RSC to initiate the negotiations. Person DG called his brother who purchased 3,800 shares of RSC. DG conferred the deal with his father who purchased 20,000 shares of RSC. DG called his at home and brother bought 3,200 more shares. The family continued to buy shares of RSC. The bid of FMC was refused but RSC announced the merger with some other company. The price of shares of RSC rose by 30 percent.
To find: The possibility of G to be held liable for insider trading.
Trending nowThis is a popular solution!
Chapter 28 Solutions
The Legal Environment of Business: Text and Cases (MindTap Course List)
- Bryan is a purchaser for Ace Widgets. Bryan’s brother-in-law is a salesperson for Niche Electronics, one of Ace’s largest suppliers. Bryan told his supervisor about the relationship, and she approved his ordering of supplies from his brother-in-law as long as the purchases were reviewed by a senior manager. Bryan did not receive any favor or money from his brother-in- law in return for the sales. A year after Bryan discussed the situation with his supervisor, Ace’s management discovers that another supplier offers the same parts as Niche Electronics but at cheaper prices. Ace Widgets is considering suing Bryan for conflict of interest. Which of the following is the most accurate statement about Ace’s chances of success? Choices: A. Ace’s chances are good because it could have gotten the supplies at a lower price. B. Ace’s chances are poor because Bryan did not actually receive any money from his brother-in-law for sending him business. C. Ace’s chances are poor because the company was…arrow_forwardChoose the right answer. 2. (The law of Agency) Conflict of interest means ________________. a. Agent is interested in Principal business b. Principal is interested in Agent business c. Agent stands to compete with Principal interest d. Principal stands to compete with Agent interest 3. (Law of Contract) The agreement is _____________ if it is caused by mistake as to any law in force in Malaysia. a. voidable b. void c. valid d. illegal 4. (Law of Contract) Yan wants to borrow RM20,000 from her friend Pang and Pang agrees to lend the money if Yan agrees to pay the money to Cathy, his sister in four installments. The above situation illustrates the principle of __________. a. consideration need not move from the promisee b. part payments are valid consideration c. natural love and affection is valid consideration d. executory consideration is performed after contract is madearrow_forwardDuties and Liabilities of Corporate Directors Discuss the extent to which a director should be held liable for breaching his or her duty of care if he or she simply neglects to read materials regarding issues to be voted on at board meetings or neglects to show up for these meetings. 2. Should such a person be equally or less liable than a director who knowingly votes to approve an illegal or harmful act?arrow_forward
- After reading the extract, explain the main purpose of the CCMAarrow_forwardRussell R. Wasendorf, Sr., age 64, from Cedar Falls, Iowa, who stole more than $215,000,000 in customer funds from his commodity futures business, was sentenced today to 50 years in federal prison. Wasendorf received the prison term after a September 17, 2012 guilty plea to one count each of: mail fraud embezzlement of customer funds by a person registered under the Commodity Exchange Act making false statements to the Commodity Futures Trading Commission making false statements to a futures association registered under the Commodity Exchange Act Wasendorf was the owner and former chief executive officer of the now-bankrupt Peregrine Financial Group Inc. (PFG), a futures commission merchant headquartered in Cedar Falls, Iowa. In a plea agreement, Wasendorf admitted that, from about the early 1990s through about July of 2012, he stole millions of dollars from PFG’s customers. Wasendorf admitted he stole the funds, at least in part, by withdrawing money secretly from a customer…arrow_forward31 - Which of the following bear only the obligations of being a trader?A) Government official who has established a commercial enterprise although it is prohibited to engage in commercial activitiesB) A pharmacist operating a pharmacy without the permission of the Ministry of Health.C) A 15-year-old person who runs a business on his behalf, even partiallyD) A 25-year-old person who runs a business on his behalf, even partiallyE) A person who acts with third parties in good faith on behalf of a company that does not exist legallyarrow_forward
BUSN 11 Introduction to Business Student EditionBusinessISBN:9781337407137Author:KellyPublisher:Cengage Learning
Essentials of Business Communication (MindTap Cou...BusinessISBN:9781337386494Author:Mary Ellen Guffey, Dana LoewyPublisher:Cengage Learning
Accounting Information Systems (14th Edition)BusinessISBN:9780134474021Author:Marshall B. Romney, Paul J. SteinbartPublisher:PEARSON
International Business: Competing in the Global M...BusinessISBN:9781259929441Author:Charles W. L. Hill Dr, G. Tomas M. HultPublisher:McGraw-Hill Education