Business Associations (Final)

Question 1

Pierce corporate veil

Answer 1

• Alter ego
• Undercapitalization
• Fraud
• Estoppel

Question 2

16(b)

Answer 2

No short swing profits

• Corporation
• -On national exchange, OR
• -10 million in assets
• -500 shareholder
• Corporate insider
• -Officers and directors
• -10% shareholders
• Trading w/in 6 months
• Remedy: disgorge profits

Question 3

10b-5 insiders

Answer 3

No insider trading

• insider direct trading
• Tipper- giving information
• Tippee- getting information
• Misappropriator

Question 4

10b-5 Misrepresentation

Answer 4

-Intent
-Material misrepresentation or omission of insider information
-Reliance
-Buy or sell securities
-Interstate commerce
Remedy-disgorge profits

Question 5

Duty of Loyalty

Answer 5

• No conflicts
• No self dealing
• No usurp principal opportunity
• No secret profits
• No commingling of funds