Series 79 practice questionhardHart-Scott-Rodino Act
A transaction subject to HSR review receives a 'second request' from the FTC. What is the immediate implication for the parties?
- AThe waiting period is extended until the parties substantially comply with the second request✓ Correct answer
- BThe transaction is automatically cleared to close
- CThe parties must abandon the transaction
- DThe transaction is referred to a federal court for antitrust litigation
Explanation
Why A — The waiting period is extended until the parties substantially comply with the second request
A second request extends the HSR waiting period until substantial compliance. The trap is thinking the deal must be abandoned or is automatically approved after the initial waiting period.
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