Great (spoof?) law-school exam drawing all its questions from cartoons:
Hank Hill works as the assistant general manager at Strickland Propane, Inc., a company in the business of selling propane and propane-related accessories. Hill works at one of the company's 200 retail locations. In the course of his normal duties, Hill supervises employees and waits on customers. Recently, Hill was told that he had been selected to help Strickland market its newest propane-related accessory: the propane-powered lawn mower. The new lawn mower was a secret project at Strickland. The company planned to publicly announce the new lawn mower in a marketing blitz scheduled to occur six weeks later. Hill was given plans for the lawn mower, marketing materials, release dates, prices, and similar information. Strickland executives instructed Hill to keep the project confidential. When Hill was through reading the materials, he tossed them in his garbage.
Hill's long-time friend and current neighbor is Dale Gribble. Hill and Gribble grew up together, and they often confide in each other. For example, Gribble would often confide with Hill about Gribble's troubled marital life. This friendship was a strong one, and neither Hill or Gribble ever broke a confidence the other had shared.
Gribble also is a paranoid-type. Unknown to his neighbors, Gribble regularly searches through their garbage. While searching Hill's garbage one early morning, Gribble took Strickland's plans for the propane-powered mower. On this basis, Gribble bought Strickland common stock on the New York Stock Exchange. When the mower was a big hit a few weeks later, Strickland stock shot up, and Gribble sold at a hefty profit. Strickland Propane is incorporated in Delaware. Is Gribble guilty of insider trading under section 10(b) and Rule 10b-5?
(Thanks, Drue!)
