Question of the Week

A sales representative or broker-dealer that violates the Uniform Securities Act when offering or selling securities incurs civil liability to:

I. Pay court fees and reasonable attorney’s fees
II. Repurchase the security from the customer at the original purchase price
III. Pay interest as required by the Administrator, minus any income the customer received from the security

a) I, II & III
b) I & II
c) II only
d) I & III

Answer:

The correct answer is a.

The sales representative or broker-dealer is required to pay interest, court and attorney’s fees and to buy back the security from the customer if a violation occurs.