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State RegulationsNC specificDifficulty 2/5

After a hearing, the Commissioner issues a cease-and-desist order against a producer engaged in unfair methods of competition. The producer willfully violates the order. Under G.S. 58-63-50, what forfeiture may be imposed?

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Answer & full 3-part explanation (select an option above, or peek)

Why C is correct

Under G.S. 58-63-50, a person who willfully violates a cease-and-desist order issued by the Commissioner forfeits not less than $1,000 nor more than $5,000 for each violation. This range is distinct from the general civil penalty of $100 to $1,000 per violation for ordinary Chapter 58 violations and from the $2,000 to $10,000 court fine on entities for willful false statements, and the trigger here - defiance of a cease-and-desist order - selects this tier.

Why the other options are wrong

  • A) The $100 to $1,000 range is the Commissioner's general civil penalty for ordinary violations, not the sanction for defying a cease-and-desist order.
  • B) A Class I felony attaches to willful false sworn financial statements under a different statute; violating a cease-and-desist order is a forfeiture matter.
  • D) The $2,000 to $10,000 range is the fine a court may impose on an entity for willful false statements, a separate consequence with a different trigger.

Memory hook

Defy the order, pay the big tier: $1,000 to $5,000 per violation.

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