Unsolicited Merchandise. Andrew, a resident of California

Subject: Business    / Management    

(1) Unsolicited Merchandise. Andrew, a resident of California, received an advertising circular in the U.S. mail announcing a new line of regional cookbooks distributed by the Every-Kind Cookbook Co. Andrew didn’t want any books and threw the circular away. Two days later, Andrew received in the mail an introductory cookbook entitled Lower Mongolian Regional Cookbook, as announced in the circular, on a “trial basis” from Every-Kind. Andrew did not go to the trouble to return the cookbook. Every-Kind demanded payment of $20.95 for the Lower Mongolian Regional Cookbook. Discuss whether Andrew can be required to pay for the book.


(2) Sales. On June 28, a salesperson for Renowned Books called on the Gonchars at their home. After a very persua-sive sales pitch by the agent, the Gonchars agreed in writing to purchase a twenty-volume set of historical encyclopedias from Renowned Books for a total of $299. A down payment of $35 was required, with the remainder of the cost to be paid in monthly payments over a one-year period. Two days later, the Gonchars, having second thoughts, contacted the book company and stated that they had decided to rescind the contract. Renowned Books said this would be impossi-ble. Has Renowned Books violated any consumer law by not allowing the Gonchars to rescind their contract? Explain.

(3)Registration Requirements. Langley Brothers, Inc., a corpo-ration incorporated and doing business in Kansas, decides to sell common stock worth $1 million to the public. The stock will be sold only within the state of Kansas. Joseph Langley, the chairman of the board, says the offering need not be registered with the Securities and Exchange Commission. His brother, Harry, disagrees. Who is right? Explain.


(4) Registration Requirements. Huron Corp. has 300,000 com-mon shares outstanding. The owners of these outstanding shares live in several different states. Huron has decided to split the 300,000 shares two for one. Will Huron Corp. have to ?le a registration statement and prospectus on the 300,000 new shares to be issued as a result of the split? Explain.