Series 63 practice questioneasyCivil Liabilities — Unregistered Securities
For a licensing checkpoint quiz, treat the following as the opening fact pattern. Assume the administrator is testing the cleanest state-law answer. A person sells a security that should have been registered but was not. The buyer's primary civil remedy under the USA is:
- AFiling a criminal complaint against the seller
- BSeeking an injunction through the Administrator
- CDemanding arbitration through FINRA
- DRescission of the transaction✓ Correct answer
Explanation
Why D — Rescission of the transaction
Under USA Section 410(a), the primary civil remedy for a buyer who purchased an unregistered security that was required to be registered is rescission. The buyer may recover the consideration paid plus interest, minus any income received, by tendering the security back to the seller. This variant keeps the same legal rule but shifts the setup so recall has to stay flexible.
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