CFA Legal Compliance & Documentation Standards 3

Question 1

Which record is considered the primary source document in an FFL's bound book (Acquisition and Disposition record)?

Accepted Answer

The A&D book entry recording each firearm acquired and disposed

Answer

The Acquisition and Disposition (A&D) bound book is the ATF-required register of every firearm an FFL receives and transfers, serving as the primary accountability record.

Question 2

An appraiser is evaluating a machine gun manufactured after May 19, 1986. What is the correct legal status of this firearm for civilian ownership?

Accepted Answer

It is prohibited from civilian transfer under the Hughes Amendment to FOPA 1986

Answer

The Hughes Amendment to the Firearm Owners Protection Act of 1986 banned civilian transfer of machine guns manufactured or registered after May 19, 1986.

Question 3

For estate appraisal purposes, which document is most critical to establish a decedent's lawful ownership of an NFA-registered item?

Accepted Answer

The ATF-approved Form 4 or Form 1 in the decedent's name

Answer

NFA items must be registered on an ATF-approved form (Form 4 for transfers, Form 1 for manufacture) in the owner's name; this document is the definitive proof of lawful registration.

Question 4

A client wants to transport a firearm across state lines for an appraisal. Under the Firearm Owners Protection Act (FOPA), what is the key legal requirement for lawful interstate transport?

Accepted Answer

The firearm must be unloaded, in a locked container, not readily accessible, and lawfully possessed at origin and destination

Answer

FOPA's 'safe passage' provision (18 U.S.C. § 926A) protects interstate transport when the firearm is unloaded, in a locked container, and legal at both endpoints.

Question 5

Which scenario correctly describes a 'straw purchase' that an appraiser must be alert to when reviewing a firearm's provenance documentation?

Accepted Answer

A person buying a firearm on behalf of another who cannot legally purchase it, falsely stating they are the actual buyer

Answer

A straw purchase occurs when the actual buyer is ineligible to purchase and uses a proxy who lies on Form 4473 about being the true purchaser, which is a federal felony.

CFA Practice Test

CFA Practice Test

CFA Legal Compliance & Documentation Standards 3

CFA Practice Test

CFA Legal Compliance & Documentation Standards​ 3

CFA Legal Compliance & Documentation Standards 3