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?

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.

Why A is correct

Under G.S. 58-63-50, willful violation of a cease-and-desist order subjects the violator to a forfeiture of not less than $1,000 nor more than $5,000 per violation. The $100 to $1,000 range is the Commissioner's general civil penalty for ordinary violations of Chapter 58 under G.S. 58-2-70, and the $2,000 to $10,000 fine is what a court may impose on an entity for willful false statements under G.S. 58-2-180. Defying an active cease-and-desist order is its own, more serious penalty tier and must never be blended with the others.

Why the other options are wrong

• B: $100 to $1,000 per violation is the general civil penalty under G.S. 58-2-70(d) for violations of Chapter 58 — it does not apply to defying a cease-and-desist order.
• C: $2,000 to $10,000 is the court fine on an entity for willful false statements in required filings under G.S. 58-2-180, a different trigger entirely.
• D: The statute sets a range of not less than $1,000 nor more than $5,000 per violation under G.S. 58-63-50; there is no flat-fee forfeiture.

Memory hook

Defy a cease-and-desist order, pay big: $1,000-$5,000 per violation.