FFL Federal Firearms Regulations & Compliance 3 — Questions and Answers
Question 1: Which ATF form is used to transfer a National Firearms Act (NFA) item from one SOT dealer to another SOT dealer?
- ATF Form 4
- ATF Form 3 (Correct answer)
- ATF Form 5
- ATF Form 1
Correct answer: ATF Form 3
ATF Form 3 is used for tax-exempt transfers of NFA items between licensed dealers who hold Special Occupational Taxpayer (SOT) status.
Question 2: Under the National Firearms Act, which of the following is NOT classified as an NFA item?
- Short-barreled rifle with a 15-inch barrel
- Silencer/suppressor
- Standard semi-automatic handgun (Correct answer)
- Any Other Weapon (AOW)
Correct answer: Standard semi-automatic handgun
A standard semi-automatic handgun with a barrel of 4 inches or more does not meet NFA definitions and is not regulated under the NFA.
Question 3: What is the maximum civil penalty per violation that ATF may impose on an FFL for willful violations of the GCA?
- $1,000
- $5,000
- $10,000 (Correct answer)
- $250,000
Correct answer: $10,000
ATF may impose civil penalties of up to $10,000 per willful violation under the Gun Control Act's civil enforcement provisions.
Question 4: A customer wishes to purchase a firearm but presents an out-of-state driver's license as their only ID. What must the FFL dealer do?
- Refuse the sale entirely
- Accept it if the customer is buying in their state of residence (Correct answer)
- Accept any government-issued photo ID
- Require a secondary form of in-state identification
Correct answer: Accept it if the customer is buying in their state of residence
Non-licensed buyers must purchase firearms in their state of residence; if the ID confirms residency matches the sale state, the transfer may proceed.
Question 5: Under 27 CFR Part 478, how must a licensed manufacturer mark each firearm they produce?
- Serial number only
- Serial number, manufacturer name, city/state, model, and caliber (Correct answer)
- Model and caliber only
- Serial number and manufacturer name only
Correct answer: Serial number, manufacturer name, city/state, model, and caliber
Federal regulations require manufacturers to mark each firearm with serial number, maker's name, city and state, model, and caliber or gauge.
Question 6: What is a 'straw purchase' under federal firearms law?
- Purchasing a firearm for a prohibited person using a false identity
- Buying multiple firearms at once for personal collection
- A transaction where the actual buyer uses another person as the nominal purchaser on Form 4473 (Correct answer)
- Purchasing firearms across state lines
Correct answer: A transaction where the actual buyer uses another person as the nominal purchaser on Form 4473
A straw purchase occurs when the true buyer has another person act as the purchaser on Form 4473, which is a federal felony.
Question 7: How long must a federal firearms licensee retain completed ATF Form 4473 records after the sale is completed?
- 5 years
- 10 years
- 20 years (Correct answer)
- The life of the business
Correct answer: 20 years
FFL dealers must retain Form 4473 records for 20 years from the date of the transaction.
FFL Federal Firearms Regulations & Compliance 3
Which ATF form is used to transfer a National Firearms Act (NFA) item from one SOT dealer to another SOT dealer?