Series 63 practice questionmediumCivil Liability for Agents
If an agent is found civilly liable under Section 410 for an unlawful sale, which of the following is also true?
- AThe employing broker-dealer may also be held liable✓ Correct answer
- BOnly the agent is liable, not the broker-dealer
- CThe Administrator must revoke the agent’s license
- DThe client can recover punitive damages
Explanation
Why A — The employing broker-dealer may also be held liable
Section 410 provides for joint and several liability of broker-dealers and agents for unlawful sales. License revocation and punitive damages are not automatic, and broker-dealers are not shielded from liability.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,051+ Series 63 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related Remedies & Administrative Provisions questions
- A seller wants to avoid a lawsuit by offering rescission to a buyer. To be effective under the USA, the rescission…
- An investor discovers a violation but waits 15 months after discovery, and four years after the sale, to file suit. Is…
- A buyer no longer owns an illegally sold security. The resale proceeds plus income received exceed the consideration…
- Which of the following is a correct statement about the seller's right under Section 410 when making a rescission offer?
- An agent sells a security in violation of the USA. The buyer sues and seeks damages but has already received income…
- A buyer who still owns the security receives a proper written pre-suit rescission offer containing the statutory refund…
- A client is awarded a civil judgment under Section 410 against both the agent who sold the security and the…
- A client buys an unregistered, nonexempt security. What must the client establish for the seller-liability provision of…