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State RegulationsNC specificDifficulty 3/5

After a hearing, the Commissioner issues a cease-and-desist order to a North Carolina producer, who willfully continues the prohibited practice. What forfeiture may be imposed for each violation of the order?

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

Why B is correct

Under G.S. 58-63-50, a person who willfully violates a cease-and-desist order is subject to a forfeiture of not less than $1,000 nor more than $5,000 per violation. This tier is deliberately harsher than the ordinary civil penalty range because defying a direct Commissioner order is treated as aggravated misconduct.

Why the other options are wrong

  • A) The $100 to $1,000 range is the general civil penalty for ordinary code violations under G.S. 58-2-70(d), not the penalty for defying an order.
  • C) The $2,000 to $10,000 fine is a court-imposed fine on an entity for willful false financial statements, a different provision entirely.
  • D) Monetary forfeiture is expressly available for violating a cease-and-desist order; criminal prosecution is not the exclusive remedy.

Memory hook

Defy the order, pay the big tier: one to five grand per violation.

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