Series 63 practice questioneasyCriminal Penalties — Willful Violations
Under the Uniform Securities Act, criminal liability applies to persons who:
- ANegligently violate the act
- BWillfully violate the provisions of the act✓ Correct answer
- CUnknowingly sell an unregistered security
- DFail to disclose immaterial information
Explanation
Why B — Willfully violate the provisions of the act
Under USA Section 409, criminal penalties apply only to those who willfully violate the provisions of the act or any rule or order under it. Unlike certain civil liabilities which may be based on strict liability, criminal liability requires a showing of willful conduct.
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