Series 63 practice questioneasyCivil Action Procedure
Under the USA, if a client accepts a rescission offer from a broker-dealer within the required timeframe, what is the result?
- AThe client forfeits the right to sue for damages✓ Correct answer
- BThe Administrator will impose additional penalties on the broker-dealer
- CThe client can still sue for triple damages
- DThe rescission is invalid unless approved by the Administrator
Explanation
Why A — The client forfeits the right to sue for damages
If a client accepts a proper rescission offer, they may not pursue further damages. The USA does not provide for additional Administrator penalties or triple damages, and Administrator approval is not required for rescission.
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