Series 63 practice questioneasyContribution Rights Basics
When multiple persons are found liable for the same securities violation under the USA, which of the following best describes contribution rights?
- AThey may recover from other liable persons after paying more than their share✓ Correct answer
- BEach must pay the full amount of damages individually
- CContribution is allowed only if ordered by the court
- DContribution is not permitted; each party is fully liable
Explanation
Why A — They may recover from other liable persons after paying more than their share
Contribution is allowed under USA Section 410(b) so that one liable party may seek reimbursement from others after paying more than their proportional share. Joint and several liability applies, and the right to contribution is recognized.
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