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Call # KF1413 .O43 2010
Author O'Kelley, Charles R. (Charles Rogers), 1946-
Title Corporations and other business associations : cases and materials / Charles R.T. O'Kelley, Robert B. Thompson
Imprint New York, NY : Aspen Publishers, c2010
Edition 6th ed
Book Cover
LOCATION CALL NO. STATUS
 CASEBOOK RESERVE  KF1413 .O43 2010    AVAILABLE
 CASEBOOK RESERVE  KF1413 .O43 2010 c.2  DUE 08-13-15 NOT AVAILABLE
 CASEBOOK RESERVE  KF1413 .O43 2010  Suppl. 2013    AVAILABLE
 CASEBOOK RESERVE  KF1413 .O43 2010  Suppl. 2013    DUE 08-13-15 NOT AVAILABLE
 SPEC COLL  Faculty Publication    SCRR USE ONLY
 SPEC COLL  Faculty Publication  Suppl. 2013    SCRR USE ONLY

Details

Descript. xxx, 1212 p. ; 27 cm. + teacher's manual
Note Includes bibliographical references and index
Subject Corporation law -- United States -- Cases
Business enterprises -- Law and legislation -- United States -- Cases
Alt Author Thompson, Robert B., 1949-
OCLC # 553368507
Table of Contents
 Prefacexxvii
1.Economic and Legal Aspects of the Firm1
A.Some Basic Concepts and Terminology1
1.Classical Firm1
a.Introductory Note1
b.Entrepreneur1
c.Coasean Firm: Differentiating the Market and the Firm2
2.Business Association3
3.Modern Corporation and the Berle-Means Critique4
4.Return of Free Market Ideology: The Firm as a Nexus of Contracts5
5.Separation of Ownership and Control and Agency Costs6
6.New Millennium: Corporate Scandal, Financial Crises, Corporate Governance, and Government Regulation7
B.Organizing the Firm: Selecting a Value-Maximizing Governance Structure8
1.Business Planning: The Role of the Corporate Lawyer in Organizing a Firm8
2.Goal of Informed Rational Choice Between Competing Investment Options9
a.Comparative Search for Best Investment9
b.Risk and Return10
3.Transaction Costs and Choice of Organizational Form12
a.Introduction12
b.Transaction Cost Factors13
c.Discrete and Relational Contracting14
d.Deciding to Organize as a Firm14
4.State-Provided Governance Structures15
a.Entity and Employment Law as Standard Form Contracts15
b.Default Versus Immutable Rules15
c.Tailored, Majoritarian, and Penalty Default Rules16
5.Nonjudicial Mechanisms that Supplement and Reinforce Private Ordering17
a.Governance Role of Markets17
b.Role of Trust18
c.Role of Norms19
C.Firm and the Law of Agency20
1.Introduction20
2.Agency Law and the Choice of Sole Proprietorship Form20
3.Fiduciary Limits on Agent's Right of Action21
 Community Counselling Service, Inc. v. Reilly22
 Hamburger v. Hamburger26
 Notes and Questions28
4.Limits on the Firm's Right to Discharge an Employee at will29
 Foley v. Interactive Data Corp30
 Notes and Questions37
5.Agency Law and Relations with Creditors39
 Blackburn v. Witter40
 Sennott v. Rodman & Renshaw43
2.Partnerships51
A.Introduction51
1.Traditional Noncorporate Business Associations51
a.General Partnership51
b.Joint Ventures53
c.Limited Partnership54
2.Emergence of Additional Limited Liability Entities as the Norm54
a.Impetus for New Forms54
b.Limited Liability Partnership55
3.Determining the Legal Nature of the Relationship56
 Byker v. Mannes'56
 Hynansky v. Vietri60
 Notes and Questions65
 Problem 2-167
 Problem 2-268
4.Sharing Profits and Losses68
 Kovacik v. Reed69
 Shamloo v. Ladd71
 Notes and Questions74
 Problem 2-375
 Problem 2-475
B.Partner as Fiduciary75
1.Common Law Duty of Loyalty75
 Meinhard v. Salmon76
 Notes and Questions81
 Problem 2-582
2.Self-Dealing83
 Vigneau v. Storch Engineers83
3.Fiduciary Duty and Management of the Partnership's Business and Affairs87
 Covalt v. High87
4.Contracting for Absolute Discretion90
 Starr v. Fordham91
 Notes and Questions94
5.Duty of Care95
 Ferguson v. Williams96
 Notes and Questions98
 Problem 2-698
C.Dissolution and Dissociation98
1.Basic Framework98
 McCormick v. Brevig100
 Notes and Questions106
 Problem 2-7108
 Problem 2-8108
2.Wrongful Dissociation109
 Drashner v. Sorenson110
 McCormick v. Brevig112
 Notes and Questions114
 Problem 2-9114
3.Fiduciary Limits on Dissolution "At Will"115
 Page v. Page115
 Notes and Questions118
 Problem 2-10119
4.Fiduciary Limits on Expulsion of Unwanted Partners119
 Bohatch v. Butler & Binion119
 Problem 2-11126
5.Contracting to Prevent Opportunistic Withdrawal: The Fiduciary Duties Owed by Withdrawing Partners126
 Meehan v. Shaughnessy126
 Notes and Questions134
 Problem 2-12134
D.Partners as Agents---Allocating the Risk of Loss in Transactions with Third Parties135
1.Partner's Apparent and Inherent Authority135
 P.A. Properties, Inc. v. B.S. Moss' Criterion Center Corp136
 Haymond v. Lundy140
 Note: Authority of Joint Venturers141
 Problem 2-13142
 Problem 2-14143
2.Partnership Authority and the Limited Liability Partnership143
 Dow v. Jones143
3.Corporate Form and the Specialized Roles of Shareholders, Directors, and Officers153
A.Corporate Form153
1.Overview153
2.Directors154
3.Officers155
4.Shareholders156
 Problem 3-1158
 Problem 3-2158
B.Formation of the Corporation and the Governance Expectations of the Initial Participants159
1.Where to Incorporate: State Corporation Laws as Competing Sets of Standard Form Rules159
 Notes on the Development of American Corporate Law160
2.Formation: The Articles of Incorporation162
 Problem 3-3163
3.Determining Shares to Issue163
 Problem 3-4164
4.Determining Voting Rights: Using Articles and Bylaws to Change Legal Norms166
a.Overview of Normal Rules of Shareholder Voting for Election of Directors: Straight Voting166
b.Cumulative Voting167
 Problem 3-5168
c.Class Voting, Including Dual-Class Voting Schemes168
 Problem 3-6169
d.Classified Board with Staggered Terms---Adaptability Versus Stability169
 Problem 3-7170
5.Looking Ahead: Shareholder Action After Electing Directors170
a.Annual Meeting and Other Forums for Shareholder Action170
 Hoschett v. TSI International Software, Ltd.172
b.Removal of Directors and Other Midstream Private Ordering176
 Adlerstein v. Wertheimer178
 Problem 3-8189
c.Protecting Changes Made to the Statutory Default Rules189
 Centaur Partners, IV v. National Intergroup, Inc.190
6.Initial Issuance of Securities196
a.Securities Act of 1933 and Its Requirement of Extensive Disclosure196
 Securities and Exchange Commission, About the SEC197
 Notes198
b.What Transactions are Covered?200
 Securities and Exchange Commission v. Edwards200
c.Exemption from Registration204
 Securities and Exchange Commission v. Ralston Purina Co.204
 Note: Exemptions207
C.Shareholder Investment and Governance in Publicly Held Corporations and the Impact of Federal Law208
1.How Publicly Held Corporations are Different208
a.Market for Shares and the Efficient Market Hypothesis208
 Problem 3-9213
b.Shareholder Census: The Emergence of Institutional Investors213
c.Proxy Voting216
d.Federal Regulation of Publicly Held Companies217
 Problem 3-10220
 Problem 3-11221
2.Shareholder Governance in the Public Corporation Setting222
a.Introduction222
b.Federal Rules Providing Shareholders Access to Persuasive Communication: Rule 14a-8224
 Lovenheim v. Iroquois Brands, Ltd.226
 Problem 3-12230
c.Persuasive Communication with Punch: Rule 14a-8 Proposals Linked with Use of Shareholder Authority to Elect/Remove Directors230
 Problem 3-13232
 Problem 3-14233
d.Using Shareholder Authority to Change the Bylaws234
 CA, Inc. v. Afscme Employees Pension Plan235
 Notes and Questions245
 Problem 3-15246
 Kistefos AS v. Trico Marine Services, Inc.248
 Notes and Questions250
e.Federal Rules to Enhance Shareholder Power---Shareholder Ability to Nominate Directors250
f.Shareholder Access to Corporate Records and Shareholder List251
 Conservative Caucus v. Chevron Corp252
 City of Westland Police & Fire Retirement System v. Axcelis Technologies, Inc.255
 Notes and Questions261
 Problem 3-16263
4.Fiduciary Duty, Shareholder Litigation, and the Business Judgment Rule265
A.Introduction to the Role of Fiduciary Duty and the Business Judgment Rule265
1.Overview265
2.Discretion to Determine General Business Policies268
 Shlensky v. Wrigley268
3.Discretion to Consider Interests of Non-Shareholder Constituencies271
 Dodge v. Ford Motor Co.272
 Notes and Questions276
 Problem 4-1276
B.Fiduciary Duty of Loyalty277
1.Introduction277
2.Corporate Opportunity Doctrine277
a.American Law Institute and MBCA Approaches277
 Northeast Harbor Golf Club, Inc. v. Harris277
 Note: Fairness and the Doctrine of Waste284
 Notes and Questions286
 Problem 4-2286
 Problem 4-3287
b.Delaware Approach287
 Broz v. Cellular Information Systems, Inc.287
 Notes and Questions298
 Problem 4-4300
3.Conflicting Interest Transactions300
a.At Common Law300
 Globe Woolen Co. v. Utica Gas & Electric Co.301
b.Transactions with a Controlling Shareholder or Director305
 Sinclair Oil Corp. v. Levien305
 Notes and Questions310
c.Intersection of the Common Law and Conflicting Interest Statutes311
 Shapiro v. Greenfield312
 Notes and Questions319
 Problem 4-5320
 Problem 4-6321
d.Special Problem of a Director's "Self-Compensation"322
C.Fiduciary Duty of Care323
1.Policy Arguments for Limiting the Reach of the Duty of Care323
 Joy v. North325
 Notes and Questions327
2.Duty of Care in the Decisional Setting328
 Smith v. Van Gorkom329
 Notes and Questions346
 Problem 4-7349
3.Statutory Exculpation Provisions350
 Malpiede v. Townson350
 Notes and Questions356
4.Intersection of the Fiduciary Duties of Care and Loyalty (Including the Duty of Good Faith)357
a.Introduction357
b.Care, Good Faith, and Directors' Oversight Responsibilities358
 In re Caremark International, Inc. Derivative Litigation359
 Notes and Questions371
 Problem 4-8374
c.Role and Nature of Substantive Review375
 Brehm v. Eisner376
d.Directors' Duty of Good Faith Explicated386
 In re Walt Disney Company Derivative Litigation387
 Notes and Questions392
 Problem 4-9393
e.Officers' Oversight and Reporting Duties393
 Miller v. U.S. Foodservice, Inc.394
 Notes and Questions397
D.Special Aspects of Derivative and Direct Litigation398
1.Derivative Litigation and the Demand Requirement398
 Aronson v. Lewis400
 Notes and Questions407
2.Fiduciary Duty and Aronson's First Prong411
 In re the Limited, Inc. Shareholders Litigation411
 Problem 4-10422
3.Demand Futility Under Aronson's Second Prong or Under the Rales Test422
 Ryan v. Gifford422
4.Demand Futility in the Contest of Caremark Claims428
 Stone v. Ritter428
5.Dismissal of Derivative Litigation at the Request of an Independent Litigation Committee of the Board432
 Zapata Corp. v. Maldonado433
 Notes and Questions437
 Problem 4-11438
E.Indemnification and Insurance438
 Owens Corning v. National Fire Insurance Co.440
 Notes and Questions444
 Problem 4-12445
 Problem 4-13445
 Problem 4-14446
5.Protecting Participants' Expectations in a Closely Held Business: Corporations and LLCs447
A.Introduction447
B.Contracting as a Device to Limit the Majority's Discretion450
1.As to Director Decisions450
 Zion v. Kurtz454
 Blount v. Taft459
 Notes and Questions465
 Problem 5-1466
2.Voting Agreements as to Shareholder Decisions467
 Ramos v. Estrada468
 Notes and Questions472
C.Fiduciary Duty and Threat of Dissolution as a Check on Opportunistic Majority Action473
1.Traditional Judicial Deference to Majority's Discretion473
 Zidell v. Zidell473
 Notes and Questions477
2.Partnership Analogy as a Basis for Enhancing Minority Shareholders' Rights478
 Donahue v. Rodd Electrotype Co.479
 Wilkes v. Springside Nursing Home, Inc.484
 Hetherington and Dooley, Illiquidity and Exploitation: A Proposed Statutory Solution to the Remaining Close Corporation Problem488
 Easterbrook and Fischel, Close Corporations and Agency Costs490
 Notes and Questions491
 Note: Direct Versus Derivative Suit492
 Problem 5-2494
 Nixon v. Blackwell494
 Notes and Questions502
3.Modern Approach to Involuntary Dissolution504
 Thompson, the Shareholder's Cause of Action for Oppression504
 In re Kemp & Beatley, Inc.506
 Gimpel v. Bolstein510
 Notes and Questions516
 Problem 5-3518
 Problem 5-4518
D.Share Repurchase Agreements519
 Concord Auto Auction, Inc. v. Rustin520
 Gallagher v. Lambert524
 Pedro v. Pedro527
 Notes and Questions531
 Problem 5-5532
6.Limited Liability Company535
A.Introduction535
 Elf Atochem North America, Inc. v. Jaffari538
 Notes and Questions544
B.Planning for the Limited Liability Company545
 Olson v. Halvorsen546
 Notes and Questions555
 Problem 6-1556
C.Fiduciary and Contractual Duties556
1.In General556
 Bay Center Apartments Owner, LLC v. Emery Bay PKI, LLC558
2.Conflicting Interest Transactions563
 Kahn v. Portnoy563
 Notes and Questions570
D.Judicial Dissolution571
1.Legal Standard571
 Fisk Ventures, LLC v. Segal572
 Notes and Questions578
2.Waiver579
 R&R Capital, LLC v. Buck & Doe Run Valley Farms, LLC580
 Notes and Questions586
E.Balancing Equitable Discretion and Respect for Private Ordering in Other Contexts587
 VGS, Inc. v. Castiel587
7.Corporation as a Device to Allocate Risk593
A.Introduction593
B.Corporate Law Rules Specifying an "Equity Cushion"594
1.Historical Overview594
2.Statutory Rules Governing the Equity Cushion596
a.Minimum Initial Capitalization Requirements596
b.Quality and Valuation of Consideration Paid for Shares597
c.Limits on Distributions to Shareholders597
 Klang v. Smith's Food & Drug Centers, Inc.599
 Notes and Questions604
 Problem 7-1607
 Problem 7-2608
C.Piercing the Veil608
1.Introduction608
2.Piercing the Corporate Veil to Reach Real Persons611
a.Contract Cases611
 Consumer's Co-op v. Olsen611
 K.C. Roofing Center v. On Top Roofing, Inc.618
 Notes and Questions622
 Problem 7-3625
b.Tort Cases625
 Western Rock Co. v. Davis626
 Baatz v. Arrow Bar628
 Notes and Questions632
 Problem 7-4634
3.Piercing the Corporate Veil to Reach Incorporated Shareholders634
 Craig v. Lake Asbestos635
 United States v. Bestfoods640
 Notes and Questions647
 Problem 7-5651
4.Piercing in LLCs651
 Kaycee Land and Livestock v. Flahive651
 Notes and Questions657
D.Ambiguous or Legally Defective Allocation of the Risk of Loss658
1.Introduction658
2.Contracts on Behalf of Nonexistent Entities658
a.Introduction658
b.Ambiguous Attempts to Contract Around Personal Liability659
 RKO-Stanley Warner Theatres, Inc. v. Graziano659
c.Allocating Losses when Insiders Make No Attempt to Contract Around Personal Liability663
 Timerline Equipment Co. v. Davenport663
 Notes and Questions667
3.Allocating the Risk of Loss from Unauthorized Actions669
a.Agent's Unauthorized Actions669
 General Overseas Films, Ltd. v. Robin International, Inc.669
 Menard, Inc. v. Dage-MTI, Inc.676
 Notes and Questions685
b.Ultra Vires686
 Problem 7-6688
8.Mergers and Other "Friendly" Control Transactions689
A.Introduction689
B.Statutory Template691
1.Mergers691
 Hewlett v. Hewlett-Packard Co.692
2.Dissenter's Rights705
 Notes and Questions707
 Problem 8-1707
C.Contracting Around Appraisal and Voting Rights708
1.Use of Alternative Transactional Forms708
a.Introductory Note708
b.Sale of Assets709
c.Triangular Mergers710
d.Compulsory Share Exchanges710
2."De Facto" Mergers711
 Applestein v. United Board & Carton Corp712
 Hariton v. Arco Electronics, Inc.717
 Notes and Questions718
 Problem 8-2720
D.Intersection Between the Appraisal Remedy and Fiduciary-Duty-Based Judicial Review720
1.Cash-Out Mergers and the Business Purpose Test720
 Coggins v. New England Patriots Football Club, Inc.722
 Notes and Questions727
 Problem 8-3728
2.Weinberger Approach728
 Weinberger v. UOP, Inc.730
 Notes and Questions742
 Problem 8-4743
E.Appraisal and Entire Fairness Review After Weinberger744
1.Valuation Under Statutory Appraisal744
 Cede & Co. v. Technicolor, Inc.745
 Notes and Questions752
 Problem 8-5753
2.Appraisal as the Exclusive Remedy753
a.In Delaware753
 Glassman v. Unocal Exploration Corp755
 Notes and Questions758
 Problem 8-6762
b.Exclusivity in Other Jurisdictions762
 Stringer v. Car Data Systems, Inc.763
 Notes and Questions766
 Problem 8-7769
3.Litigating Entire Fairness---Lynch Claims769
 In re Emerging Communications, Inc. Shareholders Litigation770
 Notes and Questions786
 Problem 8-8787
 Problem 8-9787
4.Lynch Claims and the Siliconix Transaction: The Impact of the Common Law on Deal Structuring788
 In re Cox Communications, Inc. Shareholders Litigation788
F.Transfer of Control for a Premium801
1.Fundamental Principles801
a.Sale of Control Block801
 Tryon v. Smith802
b.Sale of Corporate Office804
 Essex Universal Corp. v. Yates804
c.Negligent Sale of Corporate Control807
 Harris v. Carter807
 Notes and Questions810
 Problem 8-10811
2.Sale of Corporate Opportunity813
a.Premium Received in Compensation for Sale of Corporate Asset813
 Perlman v. Feldmann813
 Notes and Questions816
 Problem 8-11818
b.Proper and Improper Use of Majority Power819
 Thorpe v. CERBCO, Inc.819
 Problem 8-12826
9.Changes in Control: Hostile Acquisitions827
A.Market for Corporate Control827
 Coffee, Regulating the Market for Corporate Control: A Critical Assessment of the Tender Offer's Role in Corporate Governance829
 Black, Bidder Overpayment in Takeovers: Manager Ignorance and the Winner's Curse833
 Kraakman, Taking Discounts Seriously: The Implications of "Discounted" Share Prices as an Acquisition Motive834
 Glossary of Takeover Tactics835
B.Judicial Review of Tender Offer Defenses838
1.Traditional Review838
 Cheff v. Mathes838
 Problem 9-1844
2.Enhanced Scrutiny Framework844
a.Introduction844
b.Unocal Doctrine845
 Unocal Corp. v. Mesa Petroleum Co.845
 Notes and Questions851
 Problem 9-2852
c.Poison Pills852
 Moran v. Household International, Inc.853
 Notes and Questions860
 Problem 9-3860
d.Revlon Rule861
 Revlon, Inc. v. MacAndrews & Forbes Holdings, Inc.861
 Notes and Questions867
 Problem 9-4867
e.Refining Revlon and Unocal868
 Paramount Communications, Inc. v. Time, Inc.868
 Notes and Questions876
 Problem 9-5878
 Paramount Communications, Inc. v. QVC Network, Inc.878
 Notes and Questions891
 Problem 9-6894
C.Judicial Review of Voting Contest Defenses894
1.Judicial Limits on Inequitable Actions894
 Schnell v. Chris-Craft Industries, Inc.894
 Problem 9-7898
2.Enhanced Review of Good Faith Actions899
 MM Companies, Inc. v. Liquid Audio, Inc.899
 Notes and Questions908
 Problem 9-8910
 Problem 9-9910
D.Testing the Limits of Pre-Planned Defenses910
 Carmody v. Toll Brothers, Inc.911
 Notes and Questions919
 Problem 9-10921
E.Testing the Limits of "Deal Protection Devices" in Friendly Mergers922
 Omnicare, Inc. v. NCS Healthcare, Inc.922
 Problem 9-11932
F.State Anti-Takeover Statutes933
 Amanda Acquisition Corp. v. Universal Foods Corp935
 Notes and Questions937
10.Disclosure and Corporate Governance939
A.Introduction: Disclosure's Distinctive Role939
B.Mandatory Disclosure942
 In the Matter of Informix Corp942
 Notes and Questions946
 Problem 10-1947
C.Disclosure Related to Shareholder Voting948
1.Coverage of § 14(a)948
2.Rule 14a-9949
a.Implied Private Cause of Action949
 J.I. Case Co. v. Borak950
 Notes954
b.Misrepresentations or Omissions of a Material Fact955
 TSC Industries, Inc. v. Northway, Inc.955
 Virginia Bankshares, Inc. v. Sandberg957
 Notes963
c.Scienter964
d.Reliance, Causation, and Remedy964
 Mills v. Electric Auto-Lite Co.964
 Virginia Bankshares, Inc. v. Sandberg968
 Notes and Questions975
 Wilson v. Great American Industries, Inc.975
 Notes: Remedies978
 Problem 10-2980
3.Disclosure Required by State Law981
 In re the Topps Company Shareholders Litigation981
 Notes and Questions995
D.Disclosure Related to Buying and Selling996
1.Federal Law: Rule 10b-5996
2.Reach of Rule 10b-5: Standing and "In Connection with a Purchase or Sale"997
 Birnbaum v. Newport Steel Corp997
 Notes and Questions999
 Superintendent of Insurance v. Bankers Life & Casualty Co.1000
 Notes and Questions1003
 Blue Chip Stamps v. Manor Drug Stores1004
 Notes and Questions1008
 Santa Fe Industries, Inc. v. Green1009
 Note: Case Law Since Santa Fe1014
 Problem 10-31016
3.Elements of Common Law Fraud Applied to Rule 10b-51017
a.Misrepresentation or Omission of a Material Fact1017
 Basic, Inc. v. Levinson1017
 Notes and Questions1023
 In re Time Warner, Inc. Securities Litigation1024
 Note: Safe Harbor for Projections1030
b.Defendant's Mental State---Scienter1031
 Ernst & Ernst v. Hochfelder1031
 Notes1034
 Tellabs, Inc. v. Makor Issues & Rights, Ltd.1035
 Makor Issues & Rights, Ltd. v. Tellabs, Inc.1042
c.Reliance and Causation1045
 Basic, Inc. v. Levinson1046
 Notes and Questions1052
 Dura Pharmaceuticals, Inc. v. Broudo1053
 Notes and Questions1059
 Problem 10-41061
d.Measure of Recovery1061
 Green v. Occidental Petroleum Corp1061
 Note: Measure of Recovery Under Rule 10b-51067
 Problem 10-51069
4.State Law1069
 Malone v. Brincat1069
 Notes and Questions1075
11.Federal Regulation of Tender Offers1077
A.Williams Act1077
1.Disclosure1078
 Prudent Real Estate Trust v. Johncamp Realty, Inc.1078
 Notes1082
 Securities and Exchange Commission v. Amster & Co.1084
 Notes1088
 Problem 11-11089
2.Substantive Regulation1089
 Field v. Trump1090
 Notes and Questions1095
3.Definition of a Tender Offer1096
 Problem 11-21097
 Problem 11-31098
4.Antifraud Provisions of the Williams Act1098
 Schreiber v. Burlington Northern, Inc.1098
 Note: Duty to Disclose Corporate Mismanagement1103
B.Intersection of Federal Regulation and State Anti-Takeover Statutes1104
 CTS Corp. v. Dynamics Corp. of America1105
 Notes and Questions1114
 Amanda Acquisition Corp. v. Universal Foods Corp1115
 Notes and Questions1122
12.Insider Trading1123
A.Common Law Foundation for Rule 10b-51123
B.Rule 10b-5 as a Regulator of Insider Trading1125
1."Classic" Insider Trading as Fraud1126
 Securities and Exchange Commission v. Texas Gulf Sulphur Co.1126
 Notes and Questions1136
 Chiarella v. United States1139
 Notes1144
2.Extensions of the Classic Theory1144
a.Tippee Liability and Constructive Insiders1145
 Dirks v. Securities and Exchange Commission1145
 Note1152
 Problem 12-11153
 Problem 12-21153
 Problem 12-31153
b.Regulation FD1153
 Securities and Exchange Commission v. Siebel Systems, Inc.1154
 Notes and Questions1163
 Problem 12-41163
c.Misappropriation and Rule 14e-31164
 United States v. O'Hagan1165
 Notes and Questions1175
 Problem 12-51177
 Problem 12-61178
 Problem 12-71178
 Problem 12-81178
 Problem 12-91179
 Problem 12-101179
 Note: Enforcement1179
C.Regulation of Insider Trading Under §16 of the Securities Exchange Act of 19341181
1.Enforcement1181
 Gollust v. Mendell1182
 Note: Incentive to Bring Suit1185
2.Computation of Recovery1185
 Problem 12-111186
3.Who is an Insider?1186
 CBI Industries, Inc. v. Horton1187
 Note: Beneficial Ownership1190
 Feder v. Martin Marietta Corp1191
 Note: Deputization1195
4.Timing Questions: Transactions Before or After Insider Status1195
5.Unorthodox Transactions, Tender Offers, and the Definition of Purchase and Sale1196
6.Derivative Securities1197
 Table of Cases1199
 Index1205