FFL Federal Firearms Regulations & Compliance 4 — Questions and Answers
Question 1: When an FFL holder goes out of business, what must they do with their acquisition and disposition records?
- Destroy them after 5 years
- Transfer them to the ATF Out-of-Business Records Center within 30 days (Correct answer)
- Turn them over to local law enforcement
- Keep them personally for 20 years
Correct answer: Transfer them to the ATF Out-of-Business Records Center within 30 days
Upon discontinuing a firearms business, the FFL must transfer all records to the ATF Out-of-Business Records Center within 30 days.
Question 2: Which of the following actions would constitute 'engaging in the business' of dealing firearms without a license?
- Selling a personal firearm from your collection once a year
- Repeatedly buying and reselling firearms with the primary purpose of profit (Correct answer)
- Gifting a firearm to a family member
- Trading two personal firearms in a single calendar year
Correct answer: Repeatedly buying and reselling firearms with the primary purpose of profit
Repeatedly buying and reselling firearms as a primary means of profit constitutes dealing, which requires an FFL under the GCA.
Question 3: Under federal law, which of the following is a valid reason for an FFL dealer to refuse a firearms sale even if the NICS check returns a 'proceed'?
- The customer appears nervous
- The dealer has a subjective personal dislike for the buyer
- The dealer has reason to believe the sale would violate state or local law (Correct answer)
- The customer took too long to complete Form 4473
Correct answer: The dealer has reason to believe the sale would violate state or local law
An FFL may and should refuse a sale if they believe it would violate applicable state or local law, even with a NICS proceed.
Question 4: What is the purpose of ATF Form 3310.4 (Multiple Sales Report)?
- To report theft of multiple firearms
- To report transfers of two or more handguns to the same non-licensed buyer within 5 consecutive business days (Correct answer)
- To report bulk purchases from manufacturers
- To report inventory discrepancies
Correct answer: To report transfers of two or more handguns to the same non-licensed buyer within 5 consecutive business days
FFLs must submit Form 3310.4 to ATF within 24 hours when selling two or more handguns to the same unlicensed person in five consecutive business days.
Question 5: A person with a conviction for domestic violence misdemeanor attempts to purchase a firearm. Under federal law, is this person prohibited?
- No, only felony convictions prohibit firearm possession
- Yes, under the Lautenberg Amendment misdemeanor domestic violence convictions prohibit firearm possession (Correct answer)
- Only if the conviction was within the past 5 years
- Only for handguns, not long guns
Correct answer: Yes, under the Lautenberg Amendment misdemeanor domestic violence convictions prohibit firearm possession
The Lautenberg Amendment (18 U.S.C. § 922(g)(9)) prohibits firearm possession by anyone convicted of a misdemeanor crime of domestic violence.
Question 6: Which federal agency is primarily responsible for enforcing the Gun Control Act and issuing FFL licenses?
- Federal Bureau of Investigation (FBI)
- Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) (Correct answer)
- Department of Homeland Security (DHS)
- Drug Enforcement Administration (DEA)
Correct answer: Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)
The ATF is the primary federal agency responsible for GCA enforcement, FFL licensing, and regulatory compliance inspections.
Question 7: What is the correct barrel length minimum for a rifle to be exempt from NFA regulation as a short-barreled rifle?
- 14 inches
- 16 inches (Correct answer)
- 18 inches
- 20 inches
Correct answer: 16 inches
Under the NFA, a rifle must have a barrel of at least 16 inches to be exempt from classification as an NFA short-barreled rifle.
FFL Federal Firearms Regulations & Compliance 4
When an FFL holder goes out of business, what must they do with their acquisition and disposition records?