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Simple English definitions for legal terms

sale-of-business doctrine

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A quick definition of sale-of-business doctrine:

The sale-of-business doctrine used to be a rule that said when a business is sold, the stocks that come with it are not considered securities. However, this rule was rejected by the U.S. Supreme Court in 1985 in Landreth Timber Co. v. Landreth and Gould v. Ruefenacht.

A more thorough explanation:

The sale-of-business doctrine used to be a rule that said when a business is sold, the transfer of stock (ownership) does not count as a transfer of securities (investments). However, this rule is no longer used.

For example, if a company called ABC Inc. was sold to a new owner, and the old owner transferred ownership of the company to the new owner by giving them stock in the company, this used to not be considered a transfer of securities. But now, it is considered a transfer of securities.

This change was made by the U.S. Supreme Court in 1985 in a case called Landreth Timber Co. v. Landreth and its companion case, Gould v. Ruefenacht.

Basically, this means that when a business is sold and ownership is transferred through stock, it is now considered a transfer of securities.

sale note | sale of land

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JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
soyalmondoatmilk
8:38
good morning! hoping waves will come our wave today
8:42
GW wave today?
8:57
There’s someone I found on here with the username threeoutchange and if my understanding is correct that’s a reference to the debut album by a pretty cool 90s-00s Japanese band called Supercar. I geeked a little
8:57
It could just be a baseball reference I don’t get though lol
Dkk
9:00
@renard99: also, the same band that does a song in the anime Eureka 7 which I watched when I was like idk, 12
9:00
Yeah! They are pretty good. Three Out Change is an awesome J-rock record
Dkk
9:01
I will probably not listen to them more but fun fact. Really random to start the day. An omen that the waves will be very random today.
Dkk
9:03
Fuck, reading the wikipedia now. Literal last song they did before they broke up was Storywriter. Wow.
9:05
That one is a masterpiece
9:05
My favorite song by them is Recreation
glovediedthisishismom
9:05
snowing
Dkk
9:07
@renard99: man, hard to find.
Dkk
9:07
@glovediedthisishismom: Congrats on the snow.
Dkk
9:16
@renard99: Poetic and nice.
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