TRUE OR FALSE

1. Good faith is a defense to a Section 10(b) violation.

2. Any person or entity can violate Section 10(b) of the Exchange Act or Section 17(a) of the Securities Act.

3. The state of mind required to prove a violation of Section 17(a)(1) of the Securities Act and Section 10(b) of the Exchange Act is the same.

4. Insider trading is a form of a violation of Section 10(b) of the Exchange Act because it involves fraud in the purchase or sale of a security.

5. Section 17(a) of the Securities Act can only be violated if there is a sale of a security involved in the conduct.