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← Series 63: Remedies & Administrative Provisions
Series 63 practice questioneasyCivil Liabilities — Rescission Rights

During a compliance drill, focus on how the Uniform Securities Act applies here. Focus on what changes once the scenario is viewed through state law. A buyer purchases an unregistered, non-exempt security. Under the USA, the buyer is entitled to:

  1. ATriple damages
  2. BOnly the return of the original purchase price without interest
  3. CRescission — the right to recover the purchase price plus interest, minus any income received✓ Correct answer
  4. 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. The exam trick is the framing, not the underlying Uniform Securities Act rule.

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