Series 63 practice questioneasyBuyer's Remedies
Under Section 410 of the Uniform Securities Act, if a security was sold in violation of registration provisions, which remedy is primarily available to the buyer?
- ARescission of the sale✓ Correct answer
- BCriminal prosecution of the seller
- CApproval of the sale by the Administrator
- DRevocation of the seller's registration
Explanation
Why A — Rescission of the sale
Section 410 of the USA provides that the buyer has the right to rescind the sale and recover the purchase price plus interest, less any income received, if a security was sold in violation of registration provisions. Criminal prosecution and registration revocation are administrative or criminal actions, not buyer remedies.
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