FFL Enforcement, Inspections & Legal Responsibilities 3 — Questions and Answers
Question 1: A licensed collector (Type 03 C&R FFL) wants to sell a curio and relic pistol to a non-licensee in the same state. What is required?
- The collector may sell directly with no additional requirements
- The collector must transfer the pistol through a licensed dealer who will complete a Form 4473 and NICS check (Correct answer)
- The collector must obtain ATF approval before any private sale
- The collector may sell directly but must file a copy of the buyer's driver's license with ATF
Correct answer: The collector must transfer the pistol through a licensed dealer who will complete a Form 4473 and NICS check
C&R collectors (03 FFLs) are not authorized dealers; sales to non-licensees must be conducted through a Type 01 dealer who completes the 4473 and NICS check.
Question 2: During an ATF inspection, an IOI asks to see the FFL's logbook for NFA items. The licensee is a licensed dealer-SOT. Which records are the IOI entitled to inspect?
- Only the Form 4473s for NFA item sales
- The A&D book, Forms 4473, ATF Form 3 and 4 transfers, and the SOT registration records (Correct answer)
- Only ATF Form 4 records, as Form 3s are confidential between licensees
- Only records from the current calendar year
Correct answer: The A&D book, Forms 4473, ATF Form 3 and 4 transfers, and the SOT registration records
ATF IOIs may inspect all FFL and NFA records including the A&D book, Forms 4473, Form 3 (dealer-to-dealer NFA transfers), and Form 4 (transfers to end users) for SOT holders.
Question 3: Which of the following scenarios constitutes 'engaging in the business' without a license under the GCA?
- Selling a personal firearm collection at a single auction after 10 years of collecting
- Regularly buying firearms at gun shows and reselling them at a profit with the intent to earn livelihood (Correct answer)
- Trading one personal firearm for another with a neighbor once a year
- Selling an inherited firearm to pay for funeral expenses
Correct answer: Regularly buying firearms at gun shows and reselling them at a profit with the intent to earn livelihood
Regularly buying and reselling firearms at a profit as a means of livelihood constitutes 'engaging in the business' and requires an FFL under 18 U.S.C. § 922(a)(1)(A).
Question 4: An FFL receives a subpoena from a state court ordering production of all Form 4473s for the past 3 years. The FFL should:
- Comply immediately since a court order supersedes ATF regulations
- Refuse on the grounds that Form 4473s are federal records exempt from state subpoenas
- Notify ATF promptly and seek legal counsel before responding to the subpoena (Correct answer)
- Provide only forms related to the specific defendant named in the court case
Correct answer: Notify ATF promptly and seek legal counsel before responding to the subpoena
FFLs should promptly notify ATF and obtain legal counsel when served with state court subpoenas for federal firearms records, as jurisdictional and privacy issues may apply.
Question 5: Under 27 CFR 478.127, how long must an FFL retain Form 4473 for a completed transfer?
- 5 years from the date of transfer
- 20 years from the date of transfer (Correct answer)
- Indefinitely while licensed; after ceasing business, send to ATF
- 10 years from the date of transfer
Correct answer: 20 years from the date of transfer
FFLs must retain Form 4473 for a minimum of 20 years from the date of transfer, and out-of-business records must be sent to the ATF Out-of-Business Records Center.
Question 6: An FFL discovers that an employee sold a firearm to a prohibited person without completing a Form 4473. The FFL was unaware at the time. Under ATF regulations, who bears legal responsibility?
- Only the employee, since the FFL had no knowledge
- The FFL bears administrative responsibility; the employee may face criminal liability (Correct answer)
- Both the FFL and employee automatically face criminal prosecution
- No one, since the FFL had no knowledge of the violation
Correct answer: The FFL bears administrative responsibility; the employee may face criminal liability
The FFL bears administrative responsibility for violations by employees acting within the scope of employment, while the employee may face separate criminal prosecution.
Question 7: A gun show promoter in a state with no gun show background check law invites several FFLs to sell at a show. Which statement is correct regarding FFL obligations at the gun show?
- FFLs are exempt from NICS checks at gun shows since they are temporary venues
- FFLs must comply with all federal laws including Form 4473 and NICS checks regardless of the venue (Correct answer)
- FFLs may conduct transfers without NICS if the transfer is completed within 15 minutes
- State law governs; if the state has no requirement, FFLs need not conduct background checks
Correct answer: FFLs must comply with all federal laws including Form 4473 and NICS checks regardless of the venue
FFLs must comply with all federal GCA requirements including Form 4473 completion and NICS checks at every venue, including gun shows.
FFL Enforcement, Inspections & Legal Responsibilities 3
A licensed collector (Type 03 C&R FFL) wants to sell a curio and relic pistol to a non-licensee in the same state.
What is required?