Unit 5

Question 1

Enjoined

Answer 1

Legal term that is used to refer to a person who is the subject of an injunction

Question 2

Remedies and Administrative Provisions (Hearing/Appeals)

Answer 2

Right to a hearing= 15 days in writing

Appeal for review of administrators order= filed within 60 days

Question 3

Statue of Limitations

Answer 3

Criminal penalties= 5-5-3 (5 year statute of limitations, $5,000 maximum fine, and imprisonment of no more than 3 years

Civil provisions= statute of limitations is 2 years from discovery or 3 years after act occurred, whichever occurs first

Question 4

When does a state administrator have jurisdiction of bona Fide newspaper published?

Answer 4

A state administrator never has jurisdiction over a securities offering made in a bona fide newspaper PUBLISHED OUT OF STATE.

The administrator has jurisdiction if the paper is PUBLISHED IN HIS STATE. & when at least ONE-THIRD of circulation remains in the state. NO STATE IF MORE THAN two-thirds of the paper’s circulation is out of state.

Question 5

Not considered sale

Answer 5

• stock dividend or stock split
• stock received as a result of a merger or consolidation
• a pledge or loan
• a gift of non-assessable stock