Series 63 practice questioneasyCivil Liabilities — Rescission Rights
During a compliance drill, focus on how the Uniform Securities Act applies here. Assume the administrator is testing the cleanest state-law answer. A buyer purchases an unregistered, non-exempt security. Under the USA, the buyer is entitled to:
- ATriple damages
- BOnly the return of the original purchase price without interest
- CRescission — the right to recover the purchase price plus interest, minus any income received✓ Correct answer
- DPunitive damages equal to twice the purchase price
Explanation
Why C — Rescission — the right to recover the purchase price plus interest, minus any income received
Under USA Section 410(a), a buyer who purchases an unregistered, non-exempt security has the right of rescission. The buyer may recover the consideration paid plus interest at the legal rate from the date of payment, less any income received on the security. This variant keeps the same legal rule but shifts the setup so recall has to stay flexible.
Turn it into reps
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