Anheuser-Busch Companies, Inc. v. Summit Coffee Co.
Texas Court of Appeals
934 S.W.2d 705 (1996)
Section 12 of the Securities Act of 1933 (1933 act) provided a cause of action against the seller of a security who misrepresented or omitted a material fact by means of a prospectus or oral communication. The United States Supreme Court ruled that § 12 of the Securities Act of 1933 did not apply to private secondary securities transactions, only initial public offerings. Article 581-33(A)(2) of the Texas Securities Act mirrored the language of § 12 of the 1933 act, but the Texas statute omitted the language limiting the cause of action to misrepresentations or omissions made by means of prospectus or oral communication. Summit Coffee Company (plaintiff) sued Anheuser-Busch Companies, Incorporated (defendant) under Article 581-33(A)(2) of the Texas Securities Act in relation to a private secondary securities transaction. A jury found in favor of Summit Coffee. Anheuser-Busch appealed, arguing that state and federal securities laws did not apply to a private secondary securities transaction.
Rule of Law
Holding and Reasoning (Barber, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 688,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.Unlock this case briefRead our student testimonials
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.Learn about our approachRead more about Quimbee
Here's why 688,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 43,000 briefs, keyed to 988 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.