Family Resemblance test Law and Legal Definition
Family resemblance test refers to a method of analyzing a debt instrument that is having a horizontal commonality. Horizontal commonality means pooling of interests, not only between the seller and each individual buyer, but also among all those who buy an investment contract in the same venture.[McNabb v. SEC, 298 F.3d 1126 (9th Cir. Cal. 2002)].
The following are the four factors to be considered while applying the family resemblance test:
1.The motivation that prompts a reasonable buyer and seller to enter into the transaction in question;
2.The plan of distribution of the instrument;
3.The reasonable expectations of the investing public; and
4.The existence of an alternate regulatory scheme reducing the risk of the instrument.
Legal Definition list
- Family Relations Counselor
- Family Purpose Doctrine
- Family Provision
- Family Performance Data [Aeronautics and Space]
- Family Owned Businesses
- Family Resemblance test
- Family Second Preference
- Family Size of a Dependent Student
- Family Size of an Independent Student
- Family Smoking Prevention and Tobacco Control Act
- Family Support Services
Related Legal Terms
- Ab Intestato
- ABC Test
- Abstraction-Filtration-Comparison Test
- Abstractions Test
- Acceptance Testing
- Acceptor Supra Protest
- Acid Test Ratio
- Actual-Risk Test
- Actus Inceptus Cujus Perfectio Pendet Ex Voluntate Partium Revocari Potest, Si Autem Pendet Ex Voluntate Tertiae Personae, Vel Ex Contingenti, Revocar
- Ad Testificandum
