Series 63 practice questioneasyElements of Civil Liability
Which of the following must be proven by a buyer to recover civil damages under Section 410 of the USA?
- AThe sale violated the registration or anti-fraud provisions✓ Correct answer
- BThe seller intended to defraud the buyer
- CThe buyer suffered a total loss
- DThe Administrator investigated the transaction
Explanation
Why A — The sale violated the registration or anti-fraud provisions
Buyers must show a violation of registration or anti-fraud provisions to recover under Section 410. Intent to defraud is not a requirement for civil liability, nor is a total loss or investigation by the Administrator.
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