Series 79 practice questionmediumHart-Scott-Rodino Act
If parties to a reportable transaction under the HSR Act fail to observe the required waiting period, what is the potential consequence?
- AImposition of significant civil penalties per day of violation✓ Correct answer
- BCriminal prosecution of the officers involved
- CAutomatic rescission of the transaction
- DA permanent ban on future acquisitions
Explanation
Why A — Imposition of significant civil penalties per day of violation
Significant civil penalties can be imposed for each day of violation under the HSR Act. Other answers exaggerate (criminal charges, bans, rescission) and distract from the true regulatory risk.
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