Series 63 – Uniform Securities Agent State Law Exam Administrative Provisions and Remedies 3

Question 1

Under the USA, which of the following best describes a 'consent order'?

Accepted Answer

An administrative settlement in which the respondent agrees to certain terms without admitting wrongdoing

Answer

A court order requiring investor consent before any securities transaction

Answer

A mandatory order requiring registration of previously exempt securities

Answer

An order that all parties must consent to before it becomes effective

Question 2

Under the USA, what is the effect of successfully claiming an exemption on the anti-fraud provisions?

Accepted Answer

The anti-fraud provisions apply to all transactions, even those that are otherwise exempt

Answer

The anti-fraud provisions do not apply if a valid exemption exists

Answer

The anti-fraud provisions only apply to registered securities

Answer

The anti-fraud provisions can be waived by written agreement between the parties

Question 3

Under the USA, may parties contractually waive the civil liability provisions of the Act?

Accepted Answer

No, any such waiver is void and unenforceable

Answer

Yes, if both parties are sophisticated investors

Answer

Yes, if the waiver is in writing and signed by both parties

Answer

Yes, but only with Administrator approval

Question 4

Under the USA, what is the purpose of requiring broker-dealers to maintain a surety bond?

Accepted Answer

To protect clients in the event the broker-dealer is unable to satisfy claims against it

Answer

To fund state securities enforcement activities

Answer

To cover the costs of state registration fees

Answer

To guarantee the performance of recommended securities

Question 5

Under the USA, what remedies can a successful plaintiff in a civil action recover from a violator?

Accepted Answer

The consideration paid plus interest at the legal rate, less income received, and reasonable attorney fees

Answer

Only actual damages without interest

Answer

Punitive damages up to three times the actual loss

Answer

Only the return of commissions paid

Question 6

Under the USA, the Administrator's jurisdiction extends to securities transactions that occur in which locations?

Accepted Answer

Offers to buy or sell that originate from, are directed to, or are accepted within the state

Answer

Only transactions that physically occur within the state borders

Answer

Only transactions involving securities registered in that state

Answer

Only transactions where both parties are residents of the state