AMI 2703 Definitions—Securities Fraud

Arkansas Supreme Court Committee On Jury Instructions-Civil

Ark. Model Jury Instr., Civil AMI 2703

Arkansas Model Jury Instructions-Civil

December 2023 Update

Arkansas Supreme Court Committee On Jury Instructions-Civil

Chapter 27. Securities Fraud

AMI 2703 Definitions—Securities Fraud

A security is considered to have been [sold][purchased] in this state, whether or not either party is present in this state:

[when the offer that results in the transaction originates from this state][or]

[when the offer is directed by the offeror to this state and received at the place to which it is directed or at any post office in this state in the case of a mailed offer][or]

[when an offer to buy or to sell is accepted in this state. An offer is accepted in this state when acceptance is communicated to the offeror in this state and has not previously been communicated to the offeror, orally or in writing, outside this state. Acceptance is communicated to the offeror in this state, whether or not either party is then present in this state, when the offeree directs it to the offeror in this state, reasonably believing the offeror to be in this state, and it is received at the place to which it is directed or at any post office in this state in the case of a mailed acceptance].

NOTE ON USE

Use this instruction only when a question of fact arises as to whether the purchase or sale occurred in this state, and use only the bracketed paragraph or paragraphs that relate to the evidence in the case.

COMMENT

This instruction is based on Ark. Code Ann. § 23-42-103. This definition is set out as a separate instruction because the Committee believes the applicability of the statute will not give rise to a question of fact in the majority of cases.

Section 23-42-103(5) provides:

An offer to sell or to buy is not made in this state when:
(A) The publisher circulates, or there is circulated on his behalf, in this state any bona fide newspaper or other publication of general, regular, and paid circulation which is not published in this state, or which is published in this state but has had more than two-thirds (⅔) of its circulation outside this state during the past twelve (12) months; or
(B) A radio or television program originating outside this state is received in this state.

If a case involves an issue of fact regarding these exclusions, this instruction should be modified accordingly.

As to whether an underlying instrument involved in the transaction is properly denominated a “security,” see discussion in Comment to AMI 2700.

End of Document