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Broker Compliance

October 2020 (AM) — Question 8

The grounds listed below, sufficient to justify a denial of an application for a license, are all CORRECT EXCEPT:

Why this answer

The grounds for denying a license application are enumerated in 19 CFR 111.16(b), and they include failure to meet any requirement of 19 CFR 111.11, the basic qualifications section, along with lack of business integrity and good character, willful misstatement in the application, unfair commercial conduct, and a reputation imputing criminal, dishonest, or unethical conduct. Option C swaps in 19 CFR 113.11, a provision from the bond part of the regulations, so it is not a listed ground and is the exception. The near-identical citation is the whole game: candidates who skim 113.11 as 111.11 see a correct-sounding statement and move on. Watch for: Skimming 113.11 as 111.11 and treating the bond citation as the qualifications section.

Original CBLE Simulator explanation — the question and key above are CBP's; this analysis is ours. Verify against the current edition before relying on it in practice.

CBP's cited authority

§ 19CFR§111.11§ 19 CFR§111.16

Answer and citations as published in CBP's official answer key for the October 2020 (AM) examination.

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