Series 63 practice questionhardRemedies—Bona Fide Offer
An agent makes a bona fide written rescission offer, properly including interest and court costs, to a client who is unaware of violations. The client ignores the offer. What is the consequence?
- AThe client loses the right to sue for recovery✓ Correct answer
- BThe Administrator will initiate criminal charges against the agent
- CThe client may still sue for triple damages
- DThe rescission offer is invalid unless the client is aware of the violation
Explanation
Why A — The client loses the right to sue for recovery
A proper written rescission offer that meets all Section 410 requirements and is ignored bars future civil action. Administrator action or triple damages are not triggered, and client awareness is not a requirement.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,051+ Series 63 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related Remedies & Administrative Provisions questions
- A buyer files suit under Section 410 for a securities violation, seeking to recover the current market value of the…
- A seller makes a rescission offer after the buyer has already filed a lawsuit under Section 410. What is the effect of…
- Under the Uniform Securities Act (USA), the statute of limitations for bringing a criminal action for willful…
- A buyer purchases an unregistered, non-exempt security. Under the USA, the buyer is entitled to:
- Which of the following must be present for criminal penalties to be imposed under the USA?
- A client is awarded a civil judgment under Section 410 against both the agent who sold the security and the…
- An individual found guilty of willfully violating the USA may be subject to which of the following maximum penalties?
- An agent sells a security in violation of the USA. The buyer sues and seeks damages but has already received income…