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Part One of this Article studies the embrace of full disclosure as the legislative approach to protect unit purchasers. The findings are that the embrace was without much forethought. In addition, this approach has prevented the imposition of substantive protections by administrative regulation. Finally, the legislature has not subsequently reconsidered its approach, and instead has become path dependent.

Part Two explores the deficiencies of a pure disclosure approach in protecting unit purchasers. The New York experience since 1985 is the focus of the study. The findings are that the statute permits the unit purchaser to be placed at risk, unit purchasers have in fact been placed at risk, and disclosure has not served to protect them-either directly or indirectly, e.g., via the oversight of interested and experienced institutional participants.



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