After reading Chapter 4 and the final case, respond to the following questions:
1. Who has standing to sue for violations of §16(b)?
2. Who is a potential defendant in a §16(b) lawsuit?
3. What is the remedy for §16(b) violations?
4. What is the lesson to be learned from this case? (Hint: Is there any planning that could have been done in the principal case so as to avoid a §16(b) violation?)
5. Assume that you are counsel to Nestlé in connection with its acquisition of all the stock of Chef America, for cash. How would you advise Nestlé as to the application of the federal securities law provisions described in Chapter 4? – Atleast 150 words response.