--- a/shell/ash.c
+++ b/shell/ash.c
@@ -4515,6 +4515,7 @@ clear_traps(void)
 			INT_ON;
 		}
 	}
+	may_have_traps = 0;
 }
 
 /* Lives far away from here, needed for forkchild */
--- /dev/null
+++ b/shell/ash_test/ash-signals/signal7.right
@@ -0,0 +1 @@
+Bug detected: 0
--- /dev/null
+++ b/shell/ash_test/ash-signals/signal7.tests
@@ -0,0 +1,18 @@
+bug() {
+	trap : exit
+	# Bug was causing sh to be run in subshell,
+	# as if this line is replaced with (sh -c ...; exit $?) &
+	# here:
+	sh -c 'echo REAL_CHILD=$$' &
+	echo PARENTS_IDEA_OF_CHILD=$!
+	wait  # make sure bkgd shell completes
+}
+
+bug | {
+while read varval; do
+	eval $varval
+done
+test x"$REAL_CHILD" != x"" \
+&& test x"$REAL_CHILD" = x"$PARENTS_IDEA_OF_CHILD"
+echo "Bug detected: $?"
+}
--- a/shell/hush.c
+++ b/shell/hush.c
@@ -3901,8 +3901,6 @@ static void insert_bg_job(struct pipe *p
 
 	if (G_interactive_fd)
 		printf("[%d] %d %s\n", job->jobid, job->cmds[0].pid, job->cmdtext);
-	/* Last command's pid goes to $! */
-	G.last_bg_pid = job->cmds[job->num_cmds - 1].pid;
 	G.last_jobid = job->jobid;
 }
 
@@ -4825,6 +4823,8 @@ static int run_list(struct pipe *pi)
 				if (G.run_list_level == 1)
 					insert_bg_job(pi);
 #endif
+				/* Last command's pid goes to $! */
+				G.last_bg_pid = pi->cmds[pi->num_cmds - 1].pid;
 				G.last_exitcode = rcode = EXIT_SUCCESS;
 				debug_printf_exec(": cmd&: exitcode EXIT_SUCCESS\n");
 			} else {
--- /dev/null
+++ b/shell/hush_test/hush-trap/signal7.right
@@ -0,0 +1 @@
+Bug detected: 0
--- /dev/null
+++ b/shell/hush_test/hush-trap/signal7.tests
@@ -0,0 +1,18 @@
+bug() {
+	trap : exit
+	# Bug was causing sh to be run in subshell,
+	# as if this line is replaced with (sh -c ...; exit $?) &
+	# here:
+	sh -c 'echo REAL_CHILD=$$' &
+	echo PARENTS_IDEA_OF_CHILD=$!
+	wait  # make sure bkgd shell completes
+}
+
+bug | {
+while read varval; do
+	eval $varval
+done
+test x"$REAL_CHILD" != x"" \
+&& test x"$REAL_CHILD" = x"$PARENTS_IDEA_OF_CHILD"
+echo "Bug detected: $?"
+}
--- a/shell/shell_common.c
+++ b/shell/shell_common.c
@@ -428,9 +428,14 @@ shell_builtin_ulimit(char **argv)
 						val <<= l->factor_shift;
 					}
 //bb_error_msg("opt %c val_str:'%s' val:%lld", opt_char, val_str, (long long)val);
+					/* from man bash: "If neither -H nor -S
+					 * is specified, both the soft and hard
+					 * limits are set. */
+					if (!opts)
+						opts = OPT_hard + OPT_soft;
 					if (opts & OPT_hard)
 						limit.rlim_max = val;
-					if ((opts & OPT_soft) || opts == 0)
+					if (opts & OPT_soft)
 						limit.rlim_cur = val;
 //bb_error_msg("setrlimit(%d, %lld, %lld)", l->cmd, (long long)limit.rlim_cur, (long long)limit.rlim_max);
 					if (setrlimit(l->cmd, &limit) < 0) {