A draft involves three parties: a drawer, a drawee, and a payee.
Hugo wishes to raise money for his restaurant. He offers to sell stock to his brothers,
sisters, aunts, uncles, and cousins. The offering is made by telephone to each of the
investors and amounts to a stock offering in the total dollar amount of $1,500,000. The
offering is made to a total of 38 family members and no notice is given to the SEC. Is
this a permissible exempt offering under the federal securities laws? Explain.
Business law is primarily public law.
“Restricted securities” are exempted from registration.
The “Television Test” is a test that is generally rejected by adherents of intuitionism.
A “private placement” involves no public offering and is exempt from registration.
Courts will never limit freedom of contract.
Lance has a contract with Smith to resurface a driveway at the Smith residence. Lance
by mistake stops at the Jones residence and resurfaces Jones’ driveway. Jones lives next
door to Smith and knows that Lance is at the wrong residence. Jones, however, says
nothing and watches while Lance resurfaces his driveway. Is Jones under any
contractual obligation to pay Lance for resurfacing his driveway? Explain your answer.