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State RegulationsTN specificDifficulty 3/5

A Tennessee producer engages in conduct violating a licensing provision, and the violation continues for 30 days before the producer corrects it. Assuming the Commissioner imposes the maximum per-violation penalty and no cap binds, what is the maximum penalty exposure for this violation?

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

Why D is correct

T.C.A. § 56-6-112(g)(1)–(3) provides a maximum penalty of $1,000 per violation and expressly treats each day of continued violation as a separate violation. A violation persisting for 30 days therefore accumulates exposure of up to $1,000 for each of those days, subject in practice to the $100,000 aggregate cap on penalties.

Why the other options are wrong

  • A) The statute does not merge a continuing violation into a single act; the days count separately under T.C.A. § 56-6-112(g).
  • B) Eventual correction does not erase the accrued daily violations that occurred before the cure.
  • C) The $100,000 figure is the aggregate cap, not a fixed penalty for every violation regardless of duration.

Memory hook

Thirty days of violation, thirty chances at $1,000 — cure it fast.

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