FFL Enforcement, Inspections & Legal Responsibilities 5 — Questions and Answers
Question 1: A customer who previously purchased a firearm from an FFL is later convicted of a felony. The ATF contacts the FFL and requests information about the original sale. What is the FFL's obligation?
- Decline to provide information to protect customer privacy
- Cooperate fully with ATF's trace request and provide the relevant Form 4473 information (Correct answer)
- Require a subpoena before releasing any customer information
- Notify the customer before providing any information to ATF
Correct answer: Cooperate fully with ATF's trace request and provide the relevant Form 4473 information
FFLs must cooperate with ATF trace requests, which take priority over customer privacy concerns; the FFL is legally obligated to provide the requested record information.
Question 2: An FFL notices a pattern of straw purchases: the same individual accompanies different buyers to the store, whispers instructions, and pays for the firearms. The FFL should:
- Complete the sale as long as the person signing the Form 4473 shows valid ID
- Refuse the sale and may report the suspected straw purchase to ATF (Correct answer)
- Request that the accompanying individual leave and proceed with the sale
- Alert local police only, as ATF handles only federal crimes
Correct answer: Refuse the sale and may report the suspected straw purchase to ATF
FFLs are not required to complete sales they suspect involve straw purchases and should refuse them; reporting to ATF is appropriate and encouraged.
Question 3: Under the GCA, what is the penalty for knowingly making a false statement on ATF Form 4473?
- A civil fine of up to $500
- Imprisonment up to 10 years and/or a fine (Correct answer)
- License suspension for the FFL involved
- Community service and probation for first offenses
Correct answer: Imprisonment up to 10 years and/or a fine
Knowingly making false statements on Form 4473 is a federal felony punishable by up to 10 years imprisonment and/or a fine under 18 U.S.C. § 922(a)(6).
Question 4: An ATF inspection reveals that an FFL has been maintaining Form 4473s in an unorganized pile rather than in the chronological or alphabetical filing system required. ATF cites this as a recordkeeping violation. The FFL argues the forms were all present and complete. Which statement is correct?
- The FFL is correct; only the content of the forms matters, not their organization
- ATF is correct; 27 CFR 478.124 requires forms to be filed in a manner allowing efficient retrieval (Correct answer)
- The violation is moot since all forms were present at the time of inspection
- ATF can only cite this violation if a specific form could not be located during the inspection
Correct answer: ATF is correct; 27 CFR 478.124 requires forms to be filed in a manner allowing efficient retrieval
ATF regulations require Form 4473s to be maintained in a manner that allows efficient retrieval, and failure to do so is a citable violation regardless of whether all forms are physically present.
Question 5: A licensed manufacturer's license is revoked by ATF. The manufacturer has 300 completed firearms in inventory. What may the manufacturer do with this inventory?
- Sell the firearms directly to the public since the firearms were legally manufactured
- Continue sales for 30 days to liquidate inventory
- Transfer inventory only to another FFL; no direct sales to non-licensees are permitted (Correct answer)
- Destroy the firearms within 90 days
Correct answer: Transfer inventory only to another FFL; no direct sales to non-licensees are permitted
After license revocation, a former licensee may only transfer remaining inventory through licensed dealers; direct sales to non-licensees are prohibited without a valid FFL.
Question 6: Which of the following is NOT a valid basis for ATF to deny an initial FFL application?
- The applicant has a prior felony conviction
- The applicant is under 21 years old for a dealer license
- The applicant's proposed business location violates local zoning law
- The applicant has no prior experience in the firearms industry (Correct answer)
Correct answer: The applicant has no prior experience in the firearms industry
Lack of prior firearms industry experience is not a statutory basis for denying an FFL application; the GCA specifies eligibility criteria such as age, criminal history, and compliance with local law.
Question 7: An FFL operates a pawnshop and takes in a firearm as collateral for a loan. The borrower defaults and the FFL wishes to sell the firearm. What recordkeeping is required when the FFL first takes possession of the pawned firearm?
- No entry is required until the FFL decides to sell the firearm
- The FFL must record the acquisition in the A&D book at the time of taking possession, even before default (Correct answer)
- A Form 4473 must be completed when the firearm is pawned
- The FFL only needs to record the firearm if the loan exceeds $500
Correct answer: The FFL must record the acquisition in the A&D book at the time of taking possession, even before default
FFLs must record firearms in the A&D book when they take possession (acquisition), regardless of whether ownership ultimately transfers, since the firearm is in the licensee's inventory.
FFL Enforcement, Inspections & Legal Responsibilities 5
A customer who previously purchased a firearm from an FFL is later convicted of a felony.
The ATF contacts the FFL and requests information about the original sale.
What is the FFL's obligation?