The Legal Environment of Business: Text and Cases (MindTap Course List)
10th Edition
ISBN: 9781305967304
Author: Frank B. Cross, Roger LeRoy Miller
Publisher: Cengage Learning
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Chapter 23, Problem 3RE
Assume that the Securities and Exchange Commission (SEC) has a rule that it will enforce statutory provisions prohibiting insider trading only when the insiders make monetary profits for themselves. Then the SEC makes a new rule, declaring that it will now bring enforcement actions against individuals for insider trading even if the individuals did not personally profit from the transactions. In making the new rule, the SEC does not conduct a rulemaking procedure but simply announces its decision. A stockbrokerage firm objects that the new rule was unlawfully developed without opportunity for public comment. The brokerage firm challenges the rule in an action that ultimately is reviewed by a federal appellate court. Using the information presented in the chapter, answer the following questions.
Would a court be likely to give Chevron deference to the SEC’s interpretation of the law on insider trading? Why or why not?
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Chapter 23 Solutions
The Legal Environment of Business: Text and Cases (MindTap Course List)
Ch. 23 - Assume that the Securities and Exchange Commission...Ch. 23 - Assume that the Securities and Exchange Commission...Ch. 23 - Assume that the Securities and Exchange Commission...Ch. 23 - Prob. 4RECh. 23 - Prob. 1ISCh. 23 - Prob. 2ISCh. 23 - Prob. 1BSCh. 23 - Informal Rulemaking. Assume that the Food and Drug...Ch. 23 - Rulemaking. The Investment Company Act prohibits a...Ch. 23 - Prob. 4BCP
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