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← Series 63: Remedies & Administrative Provisions
Series 63 practice questioneasyStatute of Limitations — Date of Discovery

An investor discovers an agent's fraudulent misrepresentation three years after sale but files suit within one year of discovery. Is the claim timely under the Uniform Securities Act?

  1. ANo, because the three-year outside period after the sale has expired✓ Correct answer
  2. BYes, because filing within two years after discovery always controls
  3. CYes, because fraud claims have no outside period
  4. DNo, because every fraud claim expires one year after discovery
Explanation

Why A — No, because the three-year outside period after the sale has expired

Section 410(f) uses the earlier of three years after sale or two years after discovery. A claim filed after the three-year sale period is untimely even if filed within two years after discovery.

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