What remedy may a seller offer if a sale is found to have been made in violation of the USA?

• A. Repurchase the securities at the original purchase price plus interest determined by the Administrator
• B. Sue for treble damages
• C. Rescind without repayment
• D. Liquidate the securities at market value

Answer: (A)

When a sale violates the Uniform Securities Act, the typical remedy is rescission that restores the investor to their original position. That means the seller repurchases the securities at the original purchase price and pays interest on that amount, with the interest rate to be determined by the Administrator. This approach focuses on making the investor whole by undoing the improper transaction and returning their investment plus the cost of money over time.

Why this fits best: it directly compensates the investor for the unlawful sale and aligns with the goal of restoring them to the position they were in before the transaction. It isn’t about punitive damages or forcing liquidation; it’s about undoing the violation and restoring value.

Why the other options aren’t appropriate here: treble damages aren’t the standard remedy under the USA for a sales violation, so that option isn’t applicable. Rescinding without repayment wouldn’t restore the investor’s money, leaving them worse off. Liquidating at market value also doesn’t address the restitution needed for a violation of the act.