Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

capital-risk test

Read a random definition: maritime state

A quick definition of capital-risk test:

Capital-Risk Test: A way to decide if a business deal is subject to securities laws. If a franchisee gives a lot of money to start a franchise, then it is considered an investment contract and must follow securities laws.

A more thorough explanation:

Definition: The capital-risk test is a method used to determine if a transaction is considered an investment contract and therefore subject to securities laws. This test is applied when a franchisee provides a substantial portion of the capital used by a franchiser to start its operations.

Example: Let's say that a franchiser needs $1 million to start a new business. The franchiser finds a franchisee who is willing to invest $800,000 in exchange for a share of the profits. In this case, the capital-risk test would likely classify this transaction as an investment contract subject to securities laws.

Explanation: The example illustrates how the capital-risk test is applied. If a franchisee provides a significant amount of the capital needed to start a business, then the transaction is considered an investment contract. This means that the franchisee is investing money with the expectation of receiving a return on their investment, which is subject to securities laws.

capital return | capital-stock tax

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
starfishies
10:28
they dont work from what I hear and most ppl don't recommend sharing that info with any website anyways
starfishies
10:28
but ive not heard of any disasters after people input their login anyways so you should be okay
10:29
fair enough thanks!
ClassyPleasantHeron
10:29
I'd only check a status checker to make sure my application is complete. Anything else is just asking for an anxiety attack. Schools will contact us when they have a decision ready.
snow
10:30
thats a good mindset to have
10:30
yeah I just submitted about 10 applications and submitting several more the next few days so I thought it would be easier to track them to make sure they all went complete
babycat
10:34
what I do is make a Google doc and put the links to all the status checkers in it
ClassyPleasantHeron
10:35
If you still have LawHub, I believe that checker still works.
babycat
10:35
lawhub doesn’t have every school on it though
snow
10:35
@babycat: have you submitted all your apps yet?
babycat
10:36
i got maybe three more to do. 10 done so far
snow
10:36
you sending cooley?
babycat
10:38
I’m applying Cooley binding ED
babycat
10:38
😋
snow
10:39
in all honesty, youd probs get rejected from cooley
triplethread
10:39
omg whoever recommended law hub thank you
snow
10:40
yall ever have someone try to tell you a "feel good" story but it makes you feel worse
triplethread
10:40
it doesnt have all of my schools but it does half over half which kills a lot of time for me
triplethread
10:40
have over half
triplethread
10:43
@llama: that looks complicated no thanks
10:46
@triplethread: no worries
starfishies
10:54
thats a beautiful spreadsheet what
starfishies
10:54
i wish i saw that before i made my notion board
10:55
Just lay there and llama will do all the work
triplethread
11:05
i want mac and cheese really bad
1a2b3c4d26z
11:06
What dish is everyone most excited for on thanksgiving
11:06
stuff your face, queen
snow
11:08
pecan pie
babycat
11:09
your mom
LSD+ is ad-free, with DMs, discounts, case briefs & more.