Is Liability Under Section 11 of the Securities Act of 1933

question 43

Essay

Is liability under Section 11 of the Securities Act of 1933 too broad? Should parties be liable even without scienter? Does the due diligence defense put too much of the burden of proof on defendants?

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Definitions:

Operational Routines

Refers to the established methods and procedures businesses use to carry out their daily operations efficiently.

Matrix Structure

An organizational design that combines two or more reporting structures, usually functional and project-based, for improved flexibility and responsiveness.

Network Structure

The arrangement or organization of interconnected nodes or elements, which can represent social connections, computer systems, or organizational relationships.

Decentralized Decision-Making

A management strategy where decision-making powers are distributed among various levels within an organization rather than being centralized.