Business Law Newsletter

• Liability for Injuries at a Franchise Location
  An increasing array of goods and services are offered through “franchises.” Franchising is not a new concept, but it has exploded in popularity; according to statistics compiled by Price Waterhouse Coopers in 2005 (the... Read more.
• Internet-Related Business Method Patents
  “Business methods” generally include any methodologies that are involved with operating a business, such as online ordering processes. Prior to 1998, the U.S. Patent and Trademark Office (USPTO) rarely granted patents to... Read more.
• Uniformity in International Commercial Arbitration
  The general strength and momentum of the international marketplace accentuates the need to have clear rules for the resolution of international business disputes. Fortunately, since the challenges that face companies engaged in... Read more.
• The Department of Labor's PERM System for Foreign Labor Certification
  One avenue that allows an employer to hire a foreign worker to work permanently in the U.S. entails a “permanent labor certification” through the Federal Department of Labor (DOL). Before the employer can submit a petition... Read more.

• Minneapolis marijuana activist in fight with Oregon partners files for bankruptcy
• MAKER’S MARK AND CIGAR MANUFACTURER IN LEGAL DISPUTE
• One-time mayoral candidate Deveron Gibbons sues city over 18th Avenue S property
• Trade Secret Disputes: Identifying Mutual Interest in the Face of Major Disagreement
• LuLaRoe supplier files new demand for immediate seizure of $34 million and claims the company is quietly liquidating goods

Who Regulates Securities?

“Securities” is a term that generally refers to shares of a corporation, promissory notes, and other liabilities. The laws regarding securities are very complex.

Securities are regulated by both federal and state laws. However, when state laws conflict with federal laws, the federal laws prevail. Both sets of laws usually require proper registration with an agency that regulates securities, such as the Securities and Exchange Commission (SEC).

The primary federal laws that regulate securities in the United States are the Securities Act of 1933 and the Securities Act of 1934. The former regulates the issuance of shares, while the latter regulates the trading of shares.

Securities Act of 1933

The focus of this Act is the initial money-raising phase of a corporation. Primarily, the 1933 Act requires certain disclosures and registrations, with exceptions.

Securities Act of 1934

The 1934 Act focuses upon the actual trading of shares within the market. Its purpose is to prevent fraud and insider trading. It is under this Act that stockbrokers are regulated.

State Securities Laws

States are permitted to regulate securities, as long as they don’t conflict with the federal laws. Most of these laws provide for registration and fraud prevention. State laws regulating securities are also called “Blue Sky” laws.

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