October 2020 (PM) — Question 7
The grounds listed below are sufficient to justify denial of an application for a license in all situations EXCEPT:
- AFailure to establish the business integrity and good character of the applicant
- BAny willful misstatement of pertinent facts in the application for the license
- CThe failure to meet any requirement of 19 CFR 113.11✓ CBP's answer
- DAny conduct which would be deemed unfair in commercial transactions by accepted standards
- EA reputation imputing to any criminal, dishonest, or unethical conduct, or a record of that conduct of the applicant.
Why this answer
19 CFR 111.16(b) lists the grounds on which CBP may deny a broker license application, and its qualifications cross-reference runs to 19 CFR 111.11, which states the basic requirements for a license. Option C cites 19 CFR 113.11 instead, a provision in the surety-bond part, and failing a bond regulation is not among the enumerated denial grounds, so C is the exception. Every other option paraphrases a genuine ground: failure to establish business integrity and good character, willful misstatement of pertinent facts, conduct deemed unfair in commercial transactions, and a reputation imputing criminal, dishonest, or unethical conduct. The question turns entirely on a single digit. Watch for: Reading the 113.11 bond citation as the 111.11 qualifications requirement.
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
Answer and citations as published in CBP's official answer key for the October 2020 (PM) examination.
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