If a Liquidating Subsidiary Corporation Primarily Has Loss Property to Distribute

question 14

Essay

If a liquidating subsidiary corporation primarily has loss property to distribute, the parent corporation should
A)follow Sec. 332 rules.
B)avoid Sec. 332 rules.
C)follow Sec. 332 rules but avoid Sec. 337.
D)none of the above.

• A)follow Sec. 332 rules.
• B)avoid Sec. 332 rules.
• C)follow Sec. 332 rules but avoid Sec. 337.
• D)none of the above.

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Definitions:

Dormant Commerce Clause

A legal principle that restricts states from enacting legislation that discriminates against or excessively burdens interstate commerce.

Interstate Commerce

Commercial trade, business, movement of goods or money, or transportation from one state to another, regulated by the federal government according to powers given by the Constitution.

Burden

In legal contexts, refers to the obligation of a party to prove allegations in a court case, often referred to as the "burden of proof."

Intermediate Scrutiny

A standard of judicial review that requires laws to further an important government interest in a way that is substantially related to that interest, used primarily in equal protection and due process cases.