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Series 63: Remedies & Administrative Provisions
Series 63 practice questionmediumCivil Liabilities — Rescission Offer

For a mock NASAA exam, assume the administrator is testing this exact point. Read it as a Uniform Securities Act issue rather than a federal-law issue. A seller realizes that a security was sold in violation of the USA and sends a written rescission offer to the buyer. If the buyer does not respond within 30 days, the buyer:

  1. AIs deemed to have accepted the offer and must return the security
  2. BLoses the right to bring a civil action based on that sale✓ Correct answer
  3. CMay still bring a civil action within the statute of limitations
  4. DMust file a complaint with the Administrator to preserve the claim
Explanation

Why BLoses the right to bring a civil action based on that sale

Under USA Section 410(e), if the seller makes a written offer of rescission and the buyer fails to accept within 30 days of receipt, the buyer loses the right to bring a civil action based on that transaction. This rescission offer provision encourages voluntary remediation by sellers. This version tests the same concept with a different fact pattern wrapper.

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