Section 12(a)(1)of the 1933 Act Imposes Liability on Any Person

question 76

Multiple Choice

Section 12(a) (1) of the 1933 Act imposes liability on any person who violates the provisions of Section 5.Liability extends to any purchaser to whom an illegal offer or sale was made.Which of the following describes the purchaser's remedy?

• A)The purchaser's remedy is rescission of the purchase or damages if the purchaser has already resold the securities.
• B)The purchaser's remedy is to issue an injunction against the seller and sue for punitive damages.
• C)The purchaser's remedy is rescission of the purchase and any consequential damages.
• D)The purchaser's remedy is the right to sue for treble damages.

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Definitions:

Perception of Fairness

The way individuals interpret and judge the fairness of procedures and outcomes in a social context.

Leaderless Group Discussion

A group interaction technique without a designated leader, used to observe participants' natural leadership abilities and collaborative skills.

Oral Communication Skills

The ability to express ideas and information verbally in a clear, effective, and appropriate manner.

Selling Abilities

The skills and talents possessed by an individual that enable them to effectively sell products or services.