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← Series 63: Remedies & Administrative Provisions
Series 63 practice questioneasyCivil Liabilities — Unregistered Securities

For a licensing checkpoint quiz, treat the following as the opening fact pattern. Focus on what changes once the scenario is viewed through state law. A person sells a security that should have been registered but was not. The buyer's primary civil remedy under the USA is:

  1. AFiling a criminal complaint against the seller
  2. BSeeking an injunction through the Administrator
  3. CDemanding arbitration through FINRA
  4. 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. The exam trick is the framing, not the underlying Uniform Securities Act rule.

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