Series 79 practice questionmediumHart-Scott-Rodino Act
Which action constitutes 'gun-jumping' under the HSR Act?
- AThe buyer exercises control over the target’s business before HSR clearance✓ Correct answer
- BThe buyer receives confidential information during due diligence
- CThe buyer files HSR notification ahead of signing the merger agreement
- DThe seller negotiates with other bidders
Explanation
Why A — The buyer exercises control over the target’s business before HSR clearance
Gun-jumping involves buyer control or influence over the target before HSR approval, risking penalties. Simply conducting due diligence or filing early does not constitute gun-jumping.
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