Remedies And Admin Provisions

Question 1

True or false.

The USA provides both civil liabilities and criminal penalties for persons who violate the USA.

Answer 1

True.

Question 2

What is the statute of limitations for violations of the Civil provisions of the USA?

Answer 2

3 years from the date of sale (or rendering of investment advice) or 2 years after discovering the violation.

Whichever occurred first.

Question 3

Test topic alert

Answer 3

The USA provides that every cause of action under the statute survives the death of any person who might have been a plaintiff or defendant. Therefore, any bond required must provide that suit may be brought for the specified statute of limitations, even though the person who is bonded dies before the expiration of that period.

Question 4

Take note

Answer 4

The exam May refer to the interest paid to the client as being at the state’s legal rate

Question 5

By offering to buy back the Securities that were sold in violation of the usa, the seller can avoid a lawsuit ( and the payment of court costs and legal fees) through a

Answer 5

Letter of rescission

Question 6

The buyer has _ days after receiving the letter of recession to respond

Answer 6

30 days

If the buyer does not accept or reject the rescission offer within 30 days, the buyer forfeits the right to pursue a lawsuit at a later date

Question 7

Take note

Answer 7

A client rejecting the offer of rescission within the 30-day period retains the right to take the matter to court. But, if the offer is not accepted or rejected within that 30-day period, it becomes null and void

Question 8

Test Topic Alert

Answer 8

Unlike some federal laws, there is no provision for receiving treble damages. That is, in addition to receiving back your investment, you receive payment equal to three times what you lost. The concept is found primarily in the federal laws regarding insider trading, but it is not relevant to this exam.