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Series 63: Remedies & Administrative Provisions
Series 63 practice questionhardCivil Liabilities — Statute of Limitations Scenario

In a state-law practice set, a candidate reviews the following scenario. Assume all filings and notices are evaluated under the USA. Marcus purchased securities on March 1, 2022, based on fraudulent statements. He discovered the fraud on June 1, 2024. Under the USA, what is the latest date Marcus can bring a civil action?

  1. AMarch 1, 2025 (3 years from the sale)✓ Correct answer
  2. BJune 1, 2026 (2 years from discovery)
  3. CMarch 1, 2024 (2 years from the sale)
  4. DJune 1, 2025 (1 year from discovery)
Explanation

Why AMarch 1, 2025 (3 years from the sale)

Under USA Section 410(e), the statute of limitations is 3 years from the date of sale or 2 years from discovery of the violation, whichever expires first. Two years from discovery would be June 1, 2026, but 3 years from the sale is March 1, 2025. Since March 1, 2025 comes first, that is the deadline. This variant keeps the same legal rule but shifts the setup so recall has to stay flexible.

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