State RegulationsTN specificDifficulty 2/5
The Commissioner finds that a Tennessee producer engaged in unlawful licensing practices. Which set of enforcement measures does Tennessee law authorize?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
T.C.A. § 56-6-112(g)(1)–(3) gives the Commissioner a layered enforcement toolkit for licensing violations: a cease-and-desist order, a monetary penalty of up to $1,000 per violation (each day of continued violation being a separate violation) subject to a $100,000 aggregate cap, and the availability of license suspension or revocation. These administrative remedies operate on their own, without any need for a criminal conviction.
Why the other options are wrong
- B) A warning letter is not the limit of the Commissioner's power; civil penalties under T.C.A. § 56-6-112(g) require no criminal conviction.
- C) Tennessee's licensing regime is administered administratively by the Commissioner; criminal prosecution is not the exclusive or default remedy.
- D) Suspension is one available measure, but T.C.A. § 56-6-112(g) also authorizes cease-and-desist orders and monetary penalties.
Memory hook
Stop order, stacked fines, and the license on the line — the Commissioner's three tools.