Direct common control and management

Assignment Help Management Theories

Reference no: EM131045189

W. J. Howey Company and Howey-in-the-Hills Service, Inc., were Florida corporations under direct common control and management. Howey Company owned large tracts of citrus acreage in Florida. The service company cultivated, harvested, and marketed the crops. For several years, Howey Company offered one-half of its planted acreage to the public to help it ‘‘finance additional development.'' Each prospective customer was offered both a land sales contract and a service contract with Howey-in-the-Hills after being told that it was not feasible to invest in the grove without a service arrangement. Upon payment of the purchase price, the land was conveyed by warranty deed. The service company was given full discretion over cultivating and marketing the crop. The purchaser had no right of entry to market the crop. The service company also was accountable only for an allocation of the net profits after the companies pooled the produce. The purchasers were predominantly nonresident businesspersons attracted by the expectation of substantial profits. Contending that this arrangement was an investment contract within the coverage of the Securities Act of 1933, the Securities and Exchange Commission (SEC) brought an action against the two companies to restrain them from using the mails and instrumentalities of interstate commerce in the offer and sale of unregistered and nonexempt securities. Should the SEC succeed?

Reference no: EM131045189

Questions Cloud

Analyze the service quality of telecommunication industry : Research Topic- Identify and analyze the service quality of telecommunication industry in Qatar companies and Case study of ABC & XYZ companies in Qatar

Describe an efficient procedure for doing this : We wish to establish which one of these additional variables will reduce the residual-sum-of squares the most when included with those in X1. Describe an efficient procedure for doing this.

Order processing costs-there is increase in working capital : Your firm is contemplating the purchase of a new $850,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five year life. It will be worth $180,000 at the end of that time. You will save $310,000 befor..

Probability of one finding a four-leaf clover : One in 10,000 clovers have four leaves instead of three. Therefore, how many clovers (minimum number) must be inspected such that the probability of one finding a four-leaf clover is .5 or more?

Direct common control and management : W. J. Howey Company and Howey-in-the-Hills Service, Inc., were Florida corporations under direct common control and management. Howey Company owned large tracts of citrus acreage in Florida. The service company cultivated, harvested, and marketed ..

Make a taxonomic key for all of these taxonomic groupings : Make a taxonomic key for all of these following Taxonomic groupings and specimens. You need 2 features per step and at least one must be a morphological feature.

Develop a frequency table and a relative frequency : Develop a frequency table and a relative frequency table to summarize this information.

Provide guidelines to potential customers : The manufacturer of a laser printer reports the mean number of pages a cartridge will print before it needs replacing is 12,250. The distribution of pages printed per cartridge closely follows the normal probability distribution and the standard d..

Calculate weighted average cost of capital of jones : Private equity investors are planning to provide financing to Jones Machinery and has approached your firm to perform a valuation assessment of Jones. Jones Machinery has 3 million shares outstanding and a target capital structure consisting of 30 pe..

User Account

All Pages