Which of the Following Was the Result on Appeal in United

question 63

Multiple Choice

Which of the following was the result on appeal in United States v.Carpenter,the case in the textbook in which it was claimed that federal securities law was violated by a scheme by which confidential information gained in the course of obtaining news material for the Wall Street Journal was sold to stockbrokers?

• A)That the defendants were criminally liable for violating federal securities laws by misappropriating material,nonpublic information for their own profit in the purchase and sale of securities.
• B)That the defendants were not criminally liable for violating federal securities laws by misappropriating material,nonpublic information for their own profit in the purchase and sale of securities,but could be held liable in a civil action to any investors who suffered harm.
• C)That the stockbrokers were criminally liable for violating federal securities laws by misappropriating material,nonpublic information for their own profit in the purchase and sale of securities,but there was no basis upon which the newspaper employees could be held criminally liable.
• D)That the newspaper employees could be held criminally liable for violating federal securities laws by misappropriating material,nonpublic information for their own profit,but there was no basis upon which the stockbrokers could be held liable.
• E)That there was no basis upon which either the newspaper employees or the stockbrokers could be held criminally liable under federal securities law or under civil causes of action brought by investors.

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Definitions:

Paranasal Sinuses

Air-filled spaces within skull bones that open into the nasal cavity.

Nasal Septum

A structure that divides the nasal cavity into a left and right portion.

Cilia

Hair-like projections from the outside of the cell membrane on some cell types.

Pharynx

The membrane-lined cavity behind the nose and mouth, connecting them to the esophagus, part of the digestive and respiratory systems.