2.3 Federal Statutory Liability of CPA's and others

Question 1

Section 11 of the 1933 Act

Answer 1

Civilly liable without proof of fault
Any person who acquires a security issued under a registration statement or prospectus that contains a misstatement or omission of a material fact may sue

Question 2

Section 12(a)(1)

Answer 2

No registration
No delivery of current prospectus
Sale before registration

Question 3

Section 12(a)(2)

Answer 3

Material misstatement or omission in any communication about offer or sale of any security

Question 4

Section 17(a)

Answer 4

Fraud, material misrepresentation, omission in any security sales