Series 63 practice questionhardSeller's Remedies—Timing
A seller makes a rescission offer after the buyer has already filed a lawsuit under Section 410. What is the effect of this offer?
- AIt does not bar the buyer from pursuing the claim✓ Correct answer
- BIt automatically ends the lawsuit
- CIt requires Administrator approval to be valid
- DIt must be accepted within 60 days to be effective
Explanation
Why A — It does not bar the buyer from pursuing the claim
A rescission offer made after a lawsuit has been filed does not extinguish the buyer's right to pursue the claim; it must be made before suit is filed. The Administrator’s approval and 60-day requirement are not provisions of Section 410.
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