Private Parties Cannot Sue Violators of the Securities Act of 1933

question 47

True/False

Private parties cannot sue violators of the Securities Act of 1933.

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Definitions:

Operating a Franchise

The act of running a business under the branding and operational model of an established company, typically with an agreement dictating terms and conditions.

Disclosure Statements

Information that franchisors are required to provide to potential franchisees.

Federal Trade Commission

A United States government agency that aims to prevent fraudulent, deceptive, and unfair business practices in the marketplace.

Prospective Franchisees

Individuals or entities considering the acquisition of franchise rights to operate a branded business.