Purchase Solution

Texas-based Vision Banc Savings and Loan

Not what you're looking for?

Ask Custom Question

Please discus question below:

Q 1: The Federal Home Loan Bank Board (FHLBB) operated the Federal Savings and Loan Insurance Corporation (FSLIC). The FHLBB's duties included examining all FSLIC-insured institutions to determine whether they were being operated properly under applicable laws and regulations. As part of an investigation of Texas-based Vision Banc Savings and Loan, the FHLBB became suspicious of a large loan made to Sandsend Financial Consultants, Ltd. Hoping to trace the proceeds of the loan, the FHLBB subpoenaed Sandsend's financial records from a second bank, West Belt. Sandsend requested a federal district court to void the subpoena. Should the court grant this request? Explain fully.

Q2: Sears, Roebuck & Co. adopted a new advertising program to boost sales of its Lady Kenmore dishwashers. The new ads claimed that these dishwashers "completely eliminated" the need for rinsing dishes before placing them in the dishwasher. The owner's manuals accompanying the machines, however, recommended pre-rinsing. Interviews with consumers indicated that pre-rinsing was still required for truly clean dishes. In an action against Sears, the Federal Trade Commission (FTC) held that the advertising was misleading. The FTC's remedial order required that Sears keep records to support all future advertising claims for all "major home appliances" and submit them to the FTC. Sears conceded that its dishwasher advertising was misleading but argued that the remedial order, which covered other appliances as well as Lady Kenmore dishwashers, was overly broad and unfair. Discuss fully whether the FTC's broad order is legal.

Sears started a new ad program to increase sales of its dishwashers. The ads claim the dishwashers "completely eliminate" the need to rinse dishes. The manuals recommend pre-rinsing. Research showed the dishes also had to be pre-rinsed. The FTC held that the ad was false advertising and required Sears to keep records of all future advertising claims. Sears complained the action was unfair because it was enacted on other appliances. Was it unfair and overly broad?

Purchase this Solution
Solution Summary

This solution explains if the subpoena from the Federal Home Loan Bank Board (FHLBB) is valid. This is the oversight board that was investigating a loan from Texas-based Vision Banc Savings and Loan to Sandend Financial Consultants.

Solution Preview

1 --
No. The subpoena should not be voided. We have limited details in this scenario. One of the main factors is based upon the actions of the FHLBB. We have to make certain assumptions in this case. A main assumption is that FHLBB acted within all federal laws and regulations when they made the financial record request. We have to assume that they complied within the bounds of their own policies and procedures and that all actions were legitimate. As long as these assumptions hold true, ...

Purchase this Solution
Free BrainMass Quizzes
Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Operations Management

This quiz tests a student's knowledge about Operations Management

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

View More Free Quizzes
Related BrainMass Solutions

  • Balance Sheets of Assets and Liabilities

    That is, 20% of $1,000,000 = $200,000 must be kept as a reserve, which the bank cannot loan out.

  • ebusiness

    It also says that investment products provided by Banc of America Investments Services are not insured, may lose value and are not guaranteed by bank.

  • Strategic Plan Analysis

    STEP 1 The evaluation of the mission, vision, goals and objectives of Texas Health and Human Service Commission: This material is taken from the website: http://www.hhs.state.tx.us " The mission of the Texas Health and Human Service Commission is to

  • What was Reaganomics?

    Germain Depository Institutions Act removed restrictions on loan-to-value ratios for Savings and Loan banks under Reaganomics.

  • Time Value of Money for Savings Accounts

    = (1+4%/2)^2 -1 = 4.04% Banc - The interest is paid quarterly and so the compounding frequency is 4 EAR = (1+4%/4)^4 -1 = 4.06% 3.

  • Financing Options for a Home Loan

    Another option would be to calculate the income tax savings for paying the .5% additional interest and offsetting the tax savings in the comparison, but that savings would depend on what the closing costs consist of (are some deductible).

  • Texas Homestead Exemption Case Analysis

    The Texas Constitution provides that the general creditors of the owner of the homestead cannot force sale of the homestead. Please note that this is distinct and based on the objective of uses.

  • Promissory Note for a Loan

    What William can do is go after the other general partners for the difference between his guarantee and the deficiency. The solution creates a promissory notes for a loan for Monica West Office Condos.

  • Investment Stocks

    You learn that his tax rate is 35%, and he has the following current investments and debts: ■ A car loan with an outstanding balance of $5000 and a 4.8% APR (monthly compounding) ■ Credit cards with an outstanding balance of $10,000 and a 14.9% APR

View More Related Solutions