Corporations and Other Business Associations

by O'Kelley, Charles R. T.; Thompson, Robert B.

• ISBN13: 9780735529243
• ISBN10: 0735529248
• Edition: 4th
• Format: Hardcover
• Copyright: 2003-04-01
• Publisher: Wolters Kluwer

Summary

This sophisticated yet accessible casebook balances economic and legal theory with a flexible organization, popular case selection, and effective problems. Updated and strengthened for its Fourth Edition, Corporations and Other Business Associations: Cases and Materials is the foundation of an effective teaching package for courses in corporations or business organizations. Your colleagues nationwide who depend on the O'Kelley and Thompson casebook praise its: balance of theory, cases, and problems, with law and economics theory enriching the book, without dominating the focus carefully selected and edited cases, blending classic and contemporary choices excellent and ample problems to explore the practical applications of theory in the business world - by placing the problems at the end of each chapter, The authors reinforce the preceding case and textual material readable, straightforward writing that makes the book sophisticated, but not intimidating strong coverage of non-corporate business associations accompanying annual statutory supplement the Fourth Edition introduces much new and revised material: expanded coverage of securities law and disclosure duties in general major new cases, including Brehm v. Disney (clarification of pleading requirements in derivative suits), Emerald Partners v. Berlin (clarification of relationship between 102(b)(7) exculpation provisions and entire fairness review), Chesapeake v. Shore (on the application of the Unocal standard of review And The Blasius standard of review) and McMullin v. Beran (review of the fiduciary duties owed by controlling shareholders) new material on federal regulation of insider trading refinements To The website, including additional materials, illustrations, and documents hyperlinked to cases

Table of Contents

Preface	xxvii
Acknowledgments	xxxi
Economic and Legal Aspects of the Firm	1	(46)
Some Basic Concepts and Terminology	1	(1)
What Is a ``Firm''?	1	(1)
What Is the Difference Between a Sole Proprietorship and a Business Association?	2	(1)
Organizing the Firm: Selecting a Value-Maximizing Governance Structure	2	(11)
Business Planning: The Role of the Corporate Lawyer in Organizing a Firm	2	(1)
The Goal of Informed Rational Choice Between Competing Investment Options	3	(1)
Comparative Search for Best Investment	3	(1)
Risk and Return	4	(2)
Transaction Costs and Choice of Organizational Form	6	(1)
Introduction	6	(1)
Transaction Cost Factors	6	(1)
Discrete and Relational Contracting	7	(1)
Deciding to Organize as a Firm	8	(1)
State-Provided Governance Structures	9	(1)
Entity and Employment Law as Standard Form Contracts	9	(1)
Default Versus Immutable Rules	9	(1)
Tailored, Majoritarian, and Penalty Default Rules	9	(2)
Non-Judicial Mechanisms That Supplement and Reinforce Private Ordering	11	(1)
The Governance Role of Markets	11	(1)
The Role of Trust	12	(1)
The Role of Norms	12	(1)
The Firm and the Law of Agency	13	(34)
Introduction	13	(1)
Agency Law and the Choice of Sole Proprietorship Form	13	(1)
Fiduciary Limits on Agent's Right of Action	14	(1)
Community Counselling Service, Inc. v. Reilly	15	(3)
Hamburger v. Hamburger	18	(3)
Northeast Ohio College of Massotherapy v. Burek	21	(6)
Notes and Questions	27	(1)
Limits on the Firm's Right to Discharge an Employee at Will	28	(1)
Foley v. Interactive Data Corp.	28	(7)
Notes and Questions	35	(1)
Agency Law and Relations with Creditors	36	(1)
Blackburn v. Witter	37	(3)
Sennott v. Rodman & Renshaw	40	(7)
Partnerships and Limited Liability Companies	47	(88)
Introduction	47	(10)
Traditional Noncorporate Business Associations	47	(1)
The General Partnership	47	(2)
Joint Ventures	49	(1)
The Limited Partnership	50	(1)
Emergence of Additional Limited Liability Entities as the Norm	50	(1)
Impetus for New Forms	50	(1)
The Limited Liability Company	51	(1)
The Limited Liability Partnership	52	(1)
Determining the Legal Nature of the Relationship	52	(1)
Bailey v. Broder	53	(3)
Notes and Questions	56	(1)
Problem 2-1	56	(1)
Fiduciary Duty	57	(11)
The Duty of Loyalty	57	(1)
Meinhard v. Salmon	57	(5)
Notes and Questions	62	(2)
Problem 2-2	64	(1)
Problem 2-3	65	(1)
The Duty of Care	65	(1)
Ferguson v. Williams	66	(1)
Notes and Questions	67	(1)
Problem 2-4	68	(1)
Management of the Partnership's Business and Affairs	68	(19)
Allocation of Decision-Making Authority	68	(1)
Covalt v. High	69	(3)
Responsibility for the Unauthorized Contractual Acts of a General Partner	72	(1)
RNR Investments v. Peoples First Community Bank	72	(5)
Haymond v. Lundy	77	(1)
Note: Authority of Joint Venturers	78	(1)
Problem 2-5	79	(1)
Problem 2-6	79	(1)
Partnership's Liability for Partners' Actionable Conduct	80	(1)
Vanacore v. Kennedy	80	(7)
Dissociation and Dissolution: Accommodating the Changing Needs of the Partnership and Its Partners	87	(48)
At-Will Partnerships and the Dissolution Framework	87	(1)
Introduction	87	(1)
Settling Accounts	88	(1)
Kessler v. Antinora	88	(3)
Notes and Questions	91	(1)
Problem 2-7	92	(1)
Forced Liquidation After Dissolution Caused by Death or Non-Wrongful Dissociation	92	(1)
Dreifuerst v. Dreifuerst	93	(3)
Creel v. Lilly	96	(9)
Notes and Questions	105	(1)
Problem 2-8	106	(1)
Determining Rights to Property and Post-Dissolution Profits	106	(1)
Meyers v. Cole	107	(4)
Problem 2-9	111	(1)
Wrongful Dissociation	111	(1)
Page v. Page	112	(3)
Horizon/CMS Healthcare Corp. v. Southern Oaks Health Care, Inc.	115	(4)
Notes and Questions	119	(1)
Problem 2-10	120	(1)
Partner Expulsion or Freeze-out: Fiduciary Duty Owed to Unwanted Partners	120	(1)
Bohatch v. Butler & Binion	120	(6)
Problem 2-11	126	(1)
Contracting to Prevent Opportunistic Withdrawal: The Fiduciary Duties Owed by Withdrawing Partners	126	(1)
Meehan v. Shaughnessy	127	(7)
Notes and Questions	134	(1)
Problem 2-12	134	(1)
The Corporate Form and the Specialized Roles of Shareholders, Directors, and Officers	135	(86)
The Corporate Form	135	(5)
Overview	135	(1)
Directors	136	(1)
Officers	137	(1)
Shareholders	137	(2)
Problem 3-1	139	(1)
Problem 3-2	140	(1)
The Formation of the Corporation and the Governance Expectations of the Initial Participants	140	(48)
Where to Incorporate: State Corporation Laws as Competing Sets of Standard Form Rules	140	(1)
Notes on the Development of American Corporate Law	141	(2)
Formation: The Articles of Incorporation	143	(1)
Problem 3-3	143	(1)
Determining Shares to Issue	144	(1)
Problem 3-4	144	(2)
Determining Voting Rights: Using Articles and Bylaws to Change Legal Norms	146	(1)
Overview of Normal Rules of Shareholder Voting for Election of Directors: Straight Voting	146	(1)
Cumulative Voting	147	(1)
Problem 3-5	148	(1)
Class Voting, Including Dual-Class Voting Schemes	148	(1)
Problem 3-6	149	(1)
A Classified Board with Staggered Terms---Adaptability Versus Stability	149	(1)
Problem 3-7	150	(1)
Looking Ahead: Shareholder Action After Electing Directors	150	(1)
The Annual Meeting and Other Forums for Shareholder Action	150	(1)
Hoschett v. TSI International Software, Ltd.	151	(4)
Removal of Directors and Other Midstream Private Ordering	155	(3)
Adlerstein v. Wertheimer	158	(10)
Problem 3-8	168	(1)
Protecting Changes Made to the Statutory Default Rules	169	(1)
Centaur Partners, IV v. National Intergroup, Inc.	169	(6)
Initial Issuance of Securities	175	(1)
The Securities Act of 1933 and Its Requirement of Extensive Disclosure	175	(1)
Securities and Exchange Commission, About the SEC	176	(1)
Notes	177	(2)
What Transactions Are Covered?	179	(1)
Landreth Timber Co. v. Landreth	179	(5)
Exemption from Registration	184	(1)
Securities and Exchange Commission v. Ralston Purina Co.	184	(3)
Note: Exemptions	187	(1)
Shareholder Investment and Governance in Publicly Held Corporations and the Impact of Federal Law	188	(33)
How Publicly Held Corporations Are Different	188	(1)
The National Market System and the Efficient Market Hypothesis	188	(6)
Problem 3-9	194	(1)
The Shareholder Census---the Emergence of Institutional Investors	194	(2)
Proxy Voting	196	(1)
The Role of Federal Law for Publicly Held Corporations	197	(1)
Disclosure as the Dominant Approach	197	(1)
Periodic Reporting: Disclosure Required Outside of Shareholder Voting or Outside of Stock Transactions with the Corporation	198	(1)
Problem 3-10	199	(1)
Disclosure and Other Regulation Triggered by the Proxy Solicitation Process and Shareholder Voting	199	(1)
Rules Primarily Affecting Solicitation of Proxies, Whether by Management or Shareholders	200	(1)
Problem 3-11	201	(1)
Rules Primarily Regulating Shareholder Access to Effective Means of Communication with Other Shareholders	201	(2)
Socially Significant Shareholder Proposals	203	(2)
Lovenheim v. Iroquois Brands, Ltd.	205	(4)
Problem 3-12	209	(1)
Governance-Related Shareholder Proposals	209	(1)
U.S. Bancorp, Request for ``No Action'' Letter	210	(1)
Part1 Shareholder Letter to U.S. Bancorp	210	(1)
Part 2 U.S. Bancorp Letter to SEC	211	(4)
Part 3 SEC Letter	215	(1)
Problem 3-13	215	(1)
Shareholder Access to Corporate Records and Shareholder Lists: An Intersection of Federal and State Law	216	(1)
Conservative Caucus v. Chevron Corp.	216	(3)
Notes	219	(1)
Problem 3-14	220	(1)
Fiduciary Duty, Shareholder Litigation, and the Business Judgment Rule	221	(160)
Introduction to Fiduciary Duty and the Business Judgment Rule	221	(9)
Overview	221	(2)
Directors' Discretion to Determine General Business Policies	223	(1)
Shlensky v. Wrigley	223	(3)
Directors' Discretion to Consider Interests of Non-Shareholder Constituencies	226	(1)
Dodge v. Ford Motor Co.	227	(2)
Notes and Questions	229	(1)
Problem 4-1	229	(1)
The Fiduciary Duty of Care	230	(46)
Overview	230	(2)
Joy v. North	232	(2)
Director's Basic Oversight Duties	234	(1)
Hoye v. Meek	234	(4)
Notes and Questions	238	(2)
Problem 4-2	240	(1)
Duty of Care in the Decisional Setting	241	(1)
Smith v. Van Gorkom	241	(17)
Notes and Questions	258	(1)
Problem 4-3	259	(1)
Statutory Exculpation Provisions	260	(1)
Committee on Corporate Laws, Changes in the Revised Model Business Corporation Act---Amendment Pertaining to the Liability of Directors	261	(3)
Notes and Questions	264	(1)
Problem 4-4	265	(1)
The Board's Responsibility to Monitor and Prevent Illegal Activity	265	(1)
In re Caremark Int'l, Inc. Derivative Litigation	266	(8)
Notes and Questions	274	(1)
Problem 4-5	275	(1)
The Fiduciary Duty of Loyalty	276	(48)
Introduction	276	(1)
The Corporate Opportunity Doctrine	276	(1)
Northeast Harbor Golf Club, Inc. v. Harris	276	(7)
Broz v. Cellular Information Systems, Inc.	283	(10)
Notes and Questions	293	(2)
Problem 4-6	295	(1)
Conflicting Interest Transactions	296	(1)
Overview	296	(2)
Globe Woolen Co. v. Utica Gas & Electric Co.	298	(3)
Shapiro v. Greenfield	301	(7)
Notes and Questions	308	(1)
Problem 4-7	309	(1)
Problem 4-8	310	(1)
Transactions with Controlling Shareholders	310	(1)
Sinclair Oil Corp. v. Levien	311	(4)
Notes and Questions	315	(2)
Problem 4-9	317	(1)
The Special Problem of Stock Option Grants	317	(1)
Byrne v. Lord	318	(6)
Special Aspects of Derivative Litigation	324	(46)
Introduction	324	(1)
The Demand Requirement	325	(1)
Overview	325	(1)
Aronson v. Lewis	326	(7)
Notes and Questions	333	(1)
Problem 4-10	334	(1)
The Demand Futility Roadmap	334	(1)
Brehm v. Eisner	334	(18)
Problem 4-11	352	(1)
Fiduciary Duty and Aronson's First Prong	353	(1)
In re The Limited, Inc. Shareholders Litigation	353	(10)
Problem 4-12	363	(1)
Dismissal of Derivative Litigation at the Request of an Independent Litigation Committee of the Board	363	(1)
Zapata Corp. v. Maldonado	364	(5)
Notes and Questions	369	(1)
Problem 4-13	369	(1)
Indemnification and Insurance	370	(11)
Introduction	370	(1)
Indemnification	370	(1)
Stifel Financial Corp. v. Cochran	371	(5)
Notes and Questions	376	(2)
Problem 4-14	378	(1)
Problem 4-15	378	(1)
Insurance	379	(1)
Problem 4-16	379	(2)
Protecting Participants' Expectations in a Closely Held Business	381	(106)
Introduction	381	(4)
Contracting as a Device to Limit the Majority's Discretion	385	(22)
As to Director Decisions	385	(4)
Zion v. Kurtz	389	(4)
Blount v. Taft	393	(6)
Notes and Questions	399	(1)
Problem 5-1	400	(1)
Voting Agreements as to Shareholder Decisions	401	(1)
Ramos v. Estrada	402	(5)
Notes and Questions	407	(1)
Fiduciary Duty and Threat of Dissolution as a Check on Opportunistic Majority Action	407	(45)
Traditional Judicial Deference to Majority's Discretion	407	(1)
Zidell v. Zidell	408	(3)
Notes and Questions	411	(1)
The Partnership Analogy as a Basis for Enhancing Minority Shareholders' Rights	412	(1)
Donahue v. Rodd Electrotype Co.	413	(5)
Wilkes v. Springside Nursing Home, Inc.	418	(4)
Hetherington and Dooley, Illiquidity and Exploitation: A Proposed Statutory Solution to the Remaining Close Corporation Problem	422	(3)
Easterbrook and Fischel, Close Corporations and Agency Costs	425	(1)
Notes and Questions	426	(1)
Note: Direct Versus Derivative Suit	427	(2)
Problem 5-2	429	(1)
Nixon v. Blackwell	429	(8)
Notes and Questions	437	(1)
The Modern Approach to Involuntary Dissolution	438	(1)
Thompson, The Shareholder's Cause of Action for Oppression	439	(2)
In re Kemp & Beatley, Inc.	441	(3)
Gimpel v. Bolstein	444	(5)
Notes and Questions	449	(2)
Problem 5-3	451	(1)
Problem 5-4	452	(1)
Share Repurchase Agreements	452	(14)
Concord Auto Auction, Inc. v. Rustin	453	(4)
Gallagher v. Lambert	457	(3)
Pedro v. Pedro	460	(4)
Note: Share Transfer Restrictions	464	(1)
Notes and Questions	464	(1)
Problem 5-5	465	(1)
Limited Liability Companies	466	(21)
The Evolution of LLCs	466	(2)
The Importance of Contract in LLCs	468	(1)
Elf Atochem North America, Inc. v. Jaffari	468	(6)
The Role of Fiduciary Duty	474	(1)
VGS, Inc. v. Castiel	475	(4)
Note and Question	479	(1)
Problem 5-6	479	(1)
Exit and Liquidity in LLCs	480	(1)
McGee v. Best	480	(7)
The Corporation as a Device to Allocate Risk	487	(92)
Introduction	487	(1)
Corporate Law Rules Specifying an ``Equity Cushion''	488	(13)
Historical Overview	488	(2)
Statutory Rules Governing the Equity Cushion	490	(1)
Minimum Initial Capitalization Requirements	490	(1)
Quality and Valuation of Consideration Paid for Shares	491	(1)
Limits on Distributions to Shareholders	491	(2)
Klang v. Smith's Food & Drug Centers, Inc.	493	(4)
Notes and Questions	497	(3)
Problem 6-1	500	(1)
Problem 6-2	501	(1)
Piercing the Veil	501	(47)
Introduction	501	(3)
Piercing the Corporate Veil to Reach Real Persons	504	(1)
Contract Cases	504	(1)
Consumer's Co-op v. Olsen	504	(6)
K.C. Roofing Center v. On Top Roofing, Inc.	510	(4)
Notes and Questions	514	(3)
Problem 6-3	517	(1)
Tort Cases	517	(1)
Western Rock Co. v. Davis	518	(2)
Baatz v. Arrow Bar	520	(4)
Notes and Questions	524	(2)
Problem 6-4	526	(1)
Piercing the Corporate Veil to Reach Incorporated Shareholders	526	(1)
Craig v. Lake Asbestos	526	(5)
United States v. Bestfoods	531	(7)
Notes and Questions	538	(4)
Problem 6-5	542	(1)
Piercing in LLCs	542	(1)
Kaycee Land and Livestock v. Flahive	542	(5)
Notes and Questions	547	(1)
Ambiguous or Legally Defective Allocation of the Risk of Loss	548	(31)
Introduction	548	(1)
Contracts on Behalf of Nonexistent Entities	549	(1)
Introduction	549	(1)
Ambiguous Attempts to Contract Around Personal Liability	550	(1)
RKO-Stanley Warner Theatres, Inc. v. Graziano	550	(3)
Allocating Losses When Insiders Make No Attempt to Contract Around Personal Liability	553	(1)
Timberline Equipment Co. v. Davenport	553	(4)
Notes and Questions	557	(2)
Allocating the Risk of Loss from Unauthorized Actions	559	(1)
Agent's Unauthorized Actions	559	(1)
General Overseas Films, Ltd. v. Robin International, Inc.	559	(7)
Menard, Inc. v. Dage-MTI, Inc.	566	(9)
Notes and Questions	575	(1)
Ultra Vires	576	(1)
Problem 6-6	577	(2)
Mergers and Other ``Friendly'' Control Transactions	579	(126)
Introduction	579	(2)
Mergers and Dissenter's Rights	581	(17)
Mergers	581	(1)
Hewlett v. Hewlett-Packard Co.	582	(13)
Dissenter's Rights	595	(1)
Notes and Questions	596	(1)
Problem 7-1	597	(1)
Contracting Around Appraisal and Voting Rights	598	(11)
Use of Alternative Transactional Forms	598	(1)
Introductory Note	598	(1)
Sale of Assets	598	(1)
Triangular Mergers	599	(1)
Compulsory Share Exchanges	600	(1)
Problem 7-2	600	(1)
``De Facto'' Mergers	600	(2)
Applestein v. United Board & Carton Corp.	602	(4)
Hariton v. Arco Electronics, Inc.	606	(1)
Notes and Questions	607	(2)
Problem 7-3	609	(1)
The Intersection Between the Appraisal Remedy and Fiduciary-Duty-Based Judicial Review	609	(23)
Cash-Out Mergers and the Business Purpose Test	609	(2)
Coggins v. New England Patriots Football Club, Inc.	611	(5)
Notes and Questions	616	(1)
Problem 7-4	616	(1)
The Weinberger Approach	617	(2)
Weinberger v. UOP, Inc.	619	(11)
Notes and Questions	630	(1)
Problem 7-5	631	(1)
Appraisal and Entire Fairness Review After Weinberger	632	(48)
Valuation Under Statutory Appraisal	632	(1)
Cede & Co. v. Technicolor, Inc.	633	(7)
Notes and Questions	640	(1)
Problem 7-6	641	(1)
Appraisal as the Exclusive Remedy	641	(1)
In Delaware	641	(1)
Glassman v. Unocal Exploration Corp.	642	(4)
Notes and Questions	646	(1)
Problem 7-7	646	(1)
Exclusivity in Other Jurisdictions	646	(1)
Stringer v. Car Data Systems, Inc.	646	(4)
Notes and Questions	650	(2)
Problem 7-8	652	(1)
Fashioning Relief for Controlling Shareholder's Failure to Prove Entire Fairness	652	(1)
Introduction	652	(1)
Weinberger on Remand	652	(1)
Weinberger v. UOP, Inc.	652	(4)
The Shell Oil Litigation	656	(1)
Smith v. Shell Petroleum, Inc.	657	(2)
Notes and Questions	659	(1)
Problem 7-9	660	(1)
Third-Party Mergers	661	(2)
Cinerama, Inc. v. Technicolor, Inc.	663	(5)
Notes and Questions	668	(1)
Problem 7-10	669	(1)
Emerald Partners v. Berlin	670	(8)
Notes and Questions	678	(1)
Problem 7-11	679	(1)
Transfer of Control for a Premium	680	(25)
Fundamental Principles	680	(1)
Sale of Control Block	680	(1)
Tryon v. Smith	681	(2)
Sale of Corporate Office	683	(1)
Essex Universal Corp. v. Yates	683	(2)
Negligent Sale of Corporate Control	685	(1)
Harris v. Carter	685	(3)
Notes and Questions	688	(2)
Problem 7-12	690	(1)
Sale of Corporate Opportunity	691	(1)
Premium Received in Compensation for Sale of Corporate Asset	691	(1)
Perlman v. Feldmann	691	(4)
Notes and Questions	695	(1)
Problem 7-13	696	(1)
Proper and Improper Use of Majority Power	697	(1)
Thorpe v. CERBCO, Inc.	697	(7)
Problem 7-14	704	(1)
Changes in Control: Hostile Acquisitions	705	(116)
The Market for Corporate Control	705	(10)
Coffee, Regulating the Market for Corporate Control: A Critical Assessment of the Tender Offer's Role in Corporate Governance	707	(4)
Black, Bidder Overpayment in Takeovers: Manager Ignorance and the Winner's Curse	711	(1)
Kraakman, Taking Discounts Seriously: The Implications of ``Discounted'' Share Prices as an Acquisition Motive	711	(1)
Glossary of Defensive Tactics	712	(3)
Judicial Review of Tender Offer Defenses	715	(51)
Traditional Review	715	(1)
Cheff v. Mathes	715	(6)
Problem 8-1	721	(1)
The Enhanced Scrutiny Framework	721	(1)
Introduction	721	(1)
The Unocal Doctrine	721	(1)
Unocal Corp. v. Mesa Petroleum Co.	721	(6)
Notes and Questions	727	(1)
Problem 8-2	728	(1)
Poison Pills	728	(1)
Moran v. Household International, Inc.	729	(6)
Notes and Questions	735	(1)
Problem 8-3	736	(1)
The Revlon Rule	736	(1)
Revlon, Inc. v. MacAndrews & Forbes Holdings, Inc.	736	(6)
Notes and Questions	742	(1)
Problem 8-4	742	(1)
Refining Revlon and Unocal	743	(1)
The Time-Warner Case	743	(1)
Paramount Communications, Inc. v. Time, Inc.	743	(8)
Notes and Questions	751	(1)
Problem 8-5	752	(1)
The QVC Case	752	(1)
Paramount Communications, Inc. v. QVC Network, Inc.	752	(13)
Notes and Questions	765	(1)
Problem 8-6	766	(1)
Judicial Review of Voting Contest Defenses	766	(22)
Judicial Limits on Inequitable Actions	766	(1)
Schnell v. Chris-Craft Industries, Inc.	766	(4)
Problem 8-7	770	(1)
Enhanced Review of Good Faith Actions	771	(1)
MM Companies, Inc. v. Liquid Audio, Inc.	771	(7)
Alderstein v. Wertheimer	778	(1)
Problem 8-8	779	(1)
Unocal Review of Measures Affecting the Shareholder Franchise	779	(1)
Unitrin, Inc. v. American General Corp.	779	(8)
Problem 8-9	787	(1)
Testing the Limits of Pre-Planned Defenses	788	(11)
Carmody v. Toll Brothers, Inc.	788	(8)
Notes and Questions	796	(2)
Problem 8-10	798	(1)
Distinguishing Direct and Derivative Actions in the Entrenchment Context	799	(10)
In re Paxson Communication Corp. Shareholders Litigation	799	(10)
Problem 8-11	809	(1)
State Anti-Takeover Statutes	809	(8)
Amanda Acquisition Corp. v. Universal Foods Corp.	811	(3)
Committee for New Management of Guaranty Bancshares Corp. v. Dimeling	814	(3)
Problem 8-12	817	(1)
Differing Incentives in Proxy Fights	817	(4)
Disclosure and Corporate Governance	821	(116)
Introduction: Disclosure's Distinctive Role	821	(2)
Mandatory Disclosure	823	(6)
In the Matter of Informix Corp.	824	(3)
Notes and Questions	827	(1)
Problem 9-1	828	(1)
Disclosure Related to Shareholder Voting	829	(37)
Coverage of §14(a)	829	(1)
Business Roundtable v. Securities and Exchange Commission	830	(4)
Notes and Questions	834	(1)
Problem 9-2	835	(1)
Rule 14a-9	835	(1)
Implied Private Cause of Action	835	(1)
J.I. Case Co. v. Borak	836	(4)
Notes	840	(1)
Misrepresentations or Omissions of a Material Fact	841	(1)
TSC Industries, Inc. v. Northway, Inc.	841	(2)
Virginia Bankshares, Inc. v. Sandberg	843	(5)
Notes	848	(2)
Scienter	850	(1)
Reliance, Causation, and Remedy	850	(1)
Mills v. Electric Auto-Lite Co.	850	(4)
Virginia Bankshares, Inc. v. Sandberg	854	(6)
Notes and Questions	860	(1)
Wilson v. Great American Industries, Inc.	861	(3)
Notes: Remedies	864	(2)
Problem 9-3	866	(1)
Disclosure Related to Buying or Selling	866	(71)
State Law	866	(1)
Malone v. Brincat	866	(5)
Notes and Questions	871	(1)
Federal Law: Rule 10b-5	872	(1)
The Reach of Rule 10b-5: Standing and ``In Connection with a Purchase or Sale''	873	(1)
Birnbaum v. Newport Steel Corp.	873	(2)
Notes and Questions	875	(1)
Superintendent of Insurance v. Bankers Life & Casualty Co.	876	(2)
Notes and Questions	878	(1)
Blue Chip Stamps v. Manor Drug Stores	879	(4)
Notes and Questions	883	(1)
Santa Fe Industries, Inc. v. Green	884	(5)
Note: Case Law Since Santa Fe	889	(2)
Problem 9-4	891	(1)
Elements of Common Law Fraud Applied to Rule 10b-5	891	(1)
Misrepresentation or Omission of a Material Fact	892	(1)
Basic Inc. v. Levinson	892	(6)
Notes and Questions	898	(1)
In re Time Warner, Inc. Securities Litigation	898	(6)
Note: Safe Harbor for Projections	904	(1)
Scienter	905	(1)
Ernst & Ernst v. Hochfelder	905	(2)
Notes	907	(1)
Novak v. Kaskas	908	(10)
Note	918	(1)
Reliance and Causation	919	(1)
Basic, Inc. v. Levinson	919	(6)
Notes and Questions	925	(1)
Problem 9-5	926	(1)
Measure of Recovery	927	(1)
Green v. Occidental Petroleum Corp.	927	(6)
Note: Measure of Recovery Under Rule 10b-5	933	(1)
Problem 9-6	934	(1)
Procedural Limits on Rule 10b-5 Suits	935	(2)
Federal Regulation of Tender Offers	937	(46)
The Williams Act	937	(26)
Disclosure	938	(1)
Prudent Real Estate Trust v. Johncamp Realty, Inc.	938	(4)
Notes	942	(1)
Securities and Exchange Commission v. Amster & Co.	943	(4)
Notes	947	(2)
Problem 10-1	949	(1)
Substantive Regulation	949	(1)
Field v. Trump	949	(6)
Notes and Questions	955	(1)
Definition of a Tender Offer	955	(2)
Problem 10-2	957	(1)
Problem 10-3	957	(1)
Antifraud Provisions of the Williams Act	957	(1)
Schreiber v. Burlington Northern, Inc.	957	(5)
Note: Duty to Disclose Corporate Mismanagement	962	(1)
Intersection of Federal Regulation and State Anti-Takeover Statutes	963	(20)
CTS Corp. v. Dynamics Corp. of America	964	(8)
Notes and Questions	972	(2)
Amanda Acquisition Corp. v. Universal Foods Corp.	974	(6)
Notes and Questions	980	(3)
Insider Trading	983	(70)
The Common Law Foundation for Rule 10b-5	983	(3)
Rule 10b-5 as a Regulator of Insider Trading	986	(51)
``Classic'' Insider Trading as Fraud	986	(1)
Securities and Exchange Commission v. Texas Gulf Sulphur Co.	986	(10)
Notes and Questions	996	(2)
Chiarella v. United States	998	(5)
Notes	1003	(1)
Extensions of the Classic Theory	1004	(1)
Tippee Liability and Constructive Insiders	1004	(1)
Dirks v. Securities and Exchange Commission	1004	(8)
Note	1012	(1)
Problem 11-1	1012	(1)
Problem 11-2	1012	(1)
Problem 11-3	1012	(1)
Regulation FD	1012	(1)
In the Matter of Siebel Systems, Inc.	1013	(7)
Notes and Questions	1020	(1)
Problem 11-4	1021	(1)
Misappropriation and Rule 14e-3	1021	(1)
United States v. O'Hagan	1022	(10)
Notes and Questions	1032	(2)
Problem 11-5	1034	(1)
Problem 11-6	1035	(1)
Problem 11-7	1035	(1)
Problem 11-8	1035	(1)
Note: Enforcement	1035	(2)
Regulation of Insider Trading Under §16 of the Securities Exchange Act of 1934	1037	(16)
Enforcement	1037	(1)
Gollust v. Mendell	1038	(3)
Note: Incentive to Bring Suit	1041	(1)
Computation of Recovery	1041	(1)
Problem 11-9	1041	(1)
Who Is an Insider?	1042	(1)
CBI Industries, Inc. v. Horton	1042	(4)
Note: Beneficial Ownership	1046	(1)
Feder v. Martin Marietta Corp.	1046	(4)
Note: Deputization	1050	(1)
Timing Questions: Transactions Before or After Insider Status	1050	(1)
Unorthodox Transactions, Tender Offers, and the Definition of Purchase and Sale	1051	(1)
Derivative Securities	1052	(1)
Table of Cases	1053	(10)
Index	1063