Civil & Criminal Procedures Flashcards
7 cards from real Series 66 – Uniform Combined State Law Exam practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Civil & Criminal Procedures flashcards as text
An investment adviser's employee who materially aids in a violation is subject to what civil liability?
Answer: Joint and several liability with the primary violator, unless unaware of the facts
Control persons and employees who materially aid are jointly and severally liable unless they prove lack of knowledge.
Which person is NOT typically named as potentially jointly liable with a seller under the USA?
Answer: A customer who bought an unrelated security
Partners, officers, directors, and materially aiding persons may be liable, but an unrelated customer is not.
A seller offers a defense to a buyer's civil claim. Which defense is recognized under the USA?
Answer: The seller did not know and in the exercise of reasonable care could not have known of the untruth
The seller can defend by proving they did not know and could not have known with reasonable care.
If a buyer no longer owns the security, which damages formula is used?
Answer: Difference between purchase price and sale price, plus interest and fees, less income received
A buyer who sold the security recovers damages equal to the difference between the purchase price and the resale price, plus interest, costs and fees.
What is the statutory interest rate commonly used in the USA's civil remedy provision?
Answer: 6% per year
The Uniform Securities Act specifies interest at 6% per year from the date of payment.
To pursue rescission, what must the buyer do?
Answer: Tender the security back to the seller
A buyer seeking rescission must tender the security.
A customer sues an investment adviser under the USA for misleading advice. Which is also recoverable?
Answer: Reasonable attorney fees and court costs
Attorney fees and court costs are part of the statutory recovery.
How this page was made: written with AI tools and published by Nathan Beja, founder of Practice Test Geeks, who is responsible for its content. Exam facts are checked against the official sources listed below. Not reviewed by a subject-matter expert. Editorial policy
Sources & references
Exam facts on this page (fees, format, dates, passing scores) are checked against these official sources; the date is our last check. Editorial policy