Series 63 practice questionmediumRescission Offer Timing
A seller wants to avoid a lawsuit by offering rescission to a buyer. To be effective under the USA, the rescission offer must be made:
- ABefore the buyer files a lawsuit✓ Correct answer
- BAfter the Administrator investigates
- CWithin five years of the violation
- DOnly if instructed by the Administrator
Explanation
Why A — Before the buyer files a lawsuit
To bar a lawsuit, Section 410 rescission offers must be made before a suit is filed. Administrator involvement or a five-year period is not required.
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