1. LLM IN AMERICAN LAW & LLM IN INTELLECTUAL PROPERTY SEPTEMBER 11, 2009 Introduction to U.S. Legal Sources

2. Government of the United States Legislative Branch passes Laws A Law and Regulation may be interpreted by a Decision made by the Judicial Branch The Law is given effect by a Regulation made by the Executive Branch

3. Legislative Branch

4. American Jobs Creation Act of 2004 H.R. 4520 (108 th Cong. 2 nd Sess.) Pub. L. 108-357 § 888118 Stat. 141826 U.S.C. § 1092(d) Bill Passed & Signed by President Assigned a Public Law Number Published in the Statutes at Large Codified in the United States Code

5. 108-357 108 = # of Congress 357 = # of the law 118 Stat. 1418 118 = volume # 1418 = page #

6. Sec. 888 Modification of Straddle Rules of the Public Law Sec. 1092 (a)(2) of the United States Code P.L. 108-357 § 888 = 26 U.S.C. §1092(a)(2)

7. 26 U.S.C. 1092 26 U.S.C. § 1092(d)(3) (3) SPECIAL RULES FOR STOCK.-For purposes of paragraph (1)- (A)IN GENERAL.- In the case of stock, the term 'personal property‘ includes stock only if (i)Such stock is of a type that is actively traded and at least 1 of the positions offsetting such stock is a position with respect to such stock or substantially similar or related property or (ii)such stock is of a corporation formed or availed of to take positions in personal property which offset positions taken by any shareholder. (B)Rule for Application – For purposes of determining whether subsection (e) applies to any transaction with respect to stock described in subparagraph (A)(ii), all includible corporations of an affiliated group (within the meaning of section 1504(a)) shall be treated as 1 taxpayer.

8. 26 U.S.C. § 1092(d)(3) (d)(3) SPECIAL RULES FOR STOCK.-For purposes of paragraph (1)- (A)IN GENERAL.-Except as provided in subparagraph (B), the term 'personal property' does not include stock. (B)Exceptions.-The term 'personal property’ includes- (i) any stock which is part of a straddle at least 1 of the offsetting positions of which is- (I)an option with respect to such stock or substantially identical stock or securities, or (II)under regulations, a position with respect to substantially similar or related property (other than stock), and (ii) any stock of a corporation formed or availed of to take positions in personal property which offset positions taken by any shareholder. (C) SPECIAL RULES.- (i) For purposes of subparagraph (B), subsection (c) and paragraph (4) shall be applied as if stock described in clause (i) or (ii) of subparagraph (B) were personal property. 26 U.S.C. § 1092(d)(3) (d)(3) SPECIAL RULES FOR STOCK.-For purposes of paragraph (1)- (A)IN GENERAL.-Except as provided in subparagraph (B), the term 'personal property' does not include stock. The preceding sentence shall not apply to any interest in stock. (B)Exceptions.-The term 'personal property’ includes- (i) any stock which is part of a straddle at least 1 of the offsetting positions of which is- (I)an option with respect to such stock or substantially identical stock or securities, or (II)under regulations, a position with respect to substantially similar or related property (other than stock), and (ii) any stock of a corporation formed or availed of to take positions in personal property which offset positions taken by any shareholder. (C) SPECIAL RULES.- (i) For purposes of subparagraph (B), subsection (c) and paragraph (4) shall be applied as if stock described in clause (i) or (ii) of subparagraph (B) were personal property. 26 U.S.C. § 1092(d)(3) (d)(3) SPECIAL RULES FOR STOCK.-For purposes of paragraph (1)- (A)IN GENERAL.-Except as provided in subparagraph (B), the term 'personal property' does not include stock. The preceding sentence shall not apply to any interest in stock. (B)Exceptions.-The term 'personal property’ includes- (i) any stock which is part of a straddle at least 1 of the offsetting positions of which is- (I)an option with respect to such stock or substantially identical stock or securities, or (II) a securities futures contract (as defined in section 234B) with respect to such stock or substantially identical stock or securities, or (III) under regulations, a position with respect to substantially similar or related property (other than stock), and (ii) any stock of a corporation formed or availed of to take positions in personal property which offset positions taken by any shareholder. (C) SPECIAL RULES.- (i) For purposes of subparagraph (B), subsection (c) and paragraph (4) shall be applied as if stock described in clause (i) or (ii) of subparagraph (B) were personal property. 26 U.S.C. § 1092(d)(3) (d)(3) SPECIAL RULES FOR STOCK.-For purposes of paragraph (1)- (A)IN GENERAL.- In the case of stock, the term 'personal property‘ includes stock only if (i)Such stock is of a type that is actively traded and at least 1 of the positions offsetting such stock is a position with respect to such stock or substantially similar or related property or (ii)such stock is of a corporation formed or availed of to take positions in personal property which offset positions taken by any shareholder. (B)Rule for Application – For purposes of determining whether subsection (e) applies to any transaction with respect to stock described in subparagraph (A)(ii), all includible corporations of an affiliated group (within the meaning of section 1504(a)) shall be treated as 1 taxpayer. Codification and Amendment Deficit Reduction Act of 1984 P.L. 98-369 Tax Reform Act of 1986 P.L. 99-514 Consolidated Appropriations Act of 2001 P.L. 106-554 American Job Creations Act of 2004 P.L. 108-357

9. Executive Branch

10. Federal Executive Documents Legislature Passes a Law Executive makes a Regulation under the Statutory Authority of the Law Regulation is published in the Federal Register Regulation is codified in the Code of Federal Regulations Deficit Reduction Act of 1984 In 1993 the IRS publishes proposed regulations in the Federal Register 58 FR 30727 In 1995 the IRS publishes final regulations in the Federal Register 60 FR 14636 26 C.F.R § 1092(d)

11. 58 F.R. 30727

12. 60 FR 14636

13. Code of Federal Regulations

14. Judicial Branch: Documents United States Supreme Court Federal Courts of Appeals Federal District Courts United States Reports Federal Reporter 3d Federal Supplement 2d

15. Judicial Branch: Documents Unofficial ReporterFederal Reports Federal Reports 2d Federal Reports 3d 55 F. 78 (1st Cir. 1893) 563 F.2d 1377 (9 th Cir. 1973) 494 F.3d 590 (7th Cir. 2007) Unofficial ReporterFederal Supplement Federal Supplement 2d 384 F.Supp. 1403 (S.D.N.Y. 1974) 438 F.Supp.2d 125 (E.D.N.Y. 2006) Official ReportersUnited States Reports389 U.S. 347 (1967) Unofficial ReportersSupreme Court Reporter U.S. Supreme Court Reports: Lawyers Edition 88 S.Ct. 507(1967) 19 L.Ed.2d 576 (1967) Case Citation: Volume Reporter Page Year 389 US 347 (1967)

16. Federal Circuits

17. Constitution and Enumerated Powers Federal Government: Article 1 sec. 8 State Government: 10 th Amendment

18. Federal System Federal Government Legislative Branch Executive Branch Judicial Branch Massachusetts Government Legislative Branch Executive Branch Judicial Branch

19. State Legislative Documents Bill Assigned a Chapter Number in the Acts and Resolves of Massachusetts Codified in the Massachusetts General Laws Bill Chapter 630, § 2, 1987 Mass. Acts 1172 Mass. Gen. Laws ch. 167H, § 2

20. 1172 Session Laws: Chapter 630, § 2, 1987 Mass. Acts

21. Code: Mass. Gen. Laws ch. 167H, § 2

22. State Executive Documents Massachusetts Legislature passes a Law Massachusetts Agency makes a Regulation based on that Law Regulation is published in the Massachusetts Register Codified in the Code of Massachusetts Regulations

23. Massachusetts Code of Regulations

24. State Judicial Documents Massachusetts Supreme Judicial Court Massachusetts Court of Appeals Massachusetts District Court Massachusetts Superior Court Official Reporter Massachusetts Reports451 Mass. 1012 (2008) Unofficial Reporter North Eastern Reporter North Eastern Reporter 2d 888 N.E.2d 924 (Mass. 2008) Official Reporter Massachusetts Appeals Court Reports 72 Mass. App. Ct. 42 (2008) Unofficial Reporter North Eastern Reporter North Eastern Reporter 2d 888 N.E.2d 956 (Mass. App. Ct. 2008)