What is a possible remedial measure involving a constructive trust?

• A. A monetary penalty only.
• B. Disgorgement of profits.
• C. Rescission of a contract.
• D. Imposition of a constructive trust on illicitly obtained assets.

Answer: (D)

A constructive trust is an equitable remedy designed to prevent unjust enrichment when someone wrongfully acquires or controls property. By imposing a constructive trust on the assets that were illicitly obtained, the court treats the wrongdoer as a trustee for the harmed party, effectively transferring ownership or control of those assets to the rightful owner. This directly addresses restitution by ensuring the property itself is held for the beneficiary rather than leaving it with the wrongdoer.

This is why the option that imposes a constructive trust on illicitly obtained assets is the best fit: it uses the trust mechanism to recover and safeguard the property, not merely impose a monetary penalty, disgorge profits, or rescind a contract, all of which do not create the asset-holding trust that restores the rightful ownership.