Series 63 practice questioneasyCivil Liability — Rescission Offer
Before Ms. Green files suit, the seller sends her a proper written rescission offer that includes the consideration paid plus statutory interest, less income received. Ms. Green still owns the security and does not accept the offer within 30 days. What is the result under the USA?
- AMs. Green loses the Section 410 right to sue based on that sale✓ Correct answer
- BMs. Green may still recover the purchase price and interest in court
- CThe rescission offer automatically creates criminal liability
- DThe Administrator must automatically fine the seller
Explanation
Why A — Ms. Green loses the Section 410 right to sue based on that sale
Under USA Section 410(g), a buyer who still owns the security and fails to accept a qualifying written pre-suit rescission offer within 30 days may not later sue under Section 410 based on that sale. The offer does not itself determine criminal or administrative liability.
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