Raymond Randall Is an Attorney with the Federal Trade Commission

question 104

Essay

Raymond Randall is an attorney with the Federal Trade Commission. A 19-year veteran with the agency, Mr. Randall was known as a good trial attorney. The FTC charged William Farley, the chairman of Fruit of the Loom, Inc., with violations of the reporting provisions of the Hart-Scott-Rodino Act, when he purchased shares of West Point-Pepperell Corporations prior to a Fruit of the Loom takeover bid. The Hart-Scott-Rodino Act requires investors to notify the government when their holdings in a firm pass $15 million. The FTC sought a fine of $10,000 per day against Mr. Farley, for a total of $910,000. Mr. Farley did notify the FTC once Fruit of the Loom made its decision to acquire West Point-Pepperell. Randall was assigned the Farley case. The FTC took a position of refusing to disclose to Farley and his attorneys documents relating to the case. Mr. Randall felt that the documents pointed to weaknesses in the FTC case and supported Mr. Farley's point that he notified the FTC once the takeover position was announced. Mr. Randall leaked the documents to Mr. Farley's lawyer. Mr. Farley's lawyers were concerned that they should not be in possession of government documents returned the documents and resigned from the case because they had seen the documents. Mr. Farley's new attorneys went to court demanding production of the documents. The documents were ordered produced by the court. When the FTC refused to produce them, the case against Mr. Farley was dismissed by a federal district judge.
a.Did Mr. Randall do the right thing in disclosing the documents to Farley's attorneys?
b.Did Mr. Farley's lawyers do the right thing in returning the documents to the FTC?

Comprehend the roles and obligations of debtors and secured parties within a secured transaction.

Identify the significance of filing financing statements and the effects of improper filing.

Distinguish between perfected and unperfected security interests and their priorities.

Understand the conditions under which a secured party can take possession of collateral and the options following a debtor's default.

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Definitions:

Co-Ownership

The condition or act of owning something together with one or more parties.

Capital Contributions

Investments made by owners or partners in a business, typically in the form of cash, property, or other assets, to provide funding for the business.

Management

The process of dealing with or controlling things or people within an organization.

Profit

The financial gain that is made when the revenue from business activities exceeds its costs.