LEGL 2700 Hackleman Cases Practice Test 2025 - Free Legal Case Practice Questions and Study Guide

In SEC v. Jarkesy, the SEC is required to bring civil penalty actions in federal court. This is because the Securities and Exchange Commission is a federal agency, and its enforcement actions, including those seeking civil penalties for violations of securities laws, fall under federal jurisdiction. Federal courts have the authority to adjudicate matters that involve federal statutes, such as those enforced by the SEC.

Bringing the action to federal court allows the SEC to utilize the specific procedures and remedies available under federal law, which are essential for effectively enforcing compliance and deterring violations in the securities market. Additionally, it provides a framework for handling legal standards and precedents established in federal securities law.

Other choices do not align with the established practices for the SEC's enforcement of civil penalties. For instance, bringing an action to state court is not appropriate since the SEC is concerned with federal securities laws. Presenting evidence without a jury typically pertains to administrative proceedings rather than civil penalties in court. Lastly, only seeking criminal penalties would not encompass the full range of remedies available to the SEC, which also includes civil penalties to address violations of the law.