CFE-LAW Online Practice Questions and Answers

Which of the following examples of judicial systems would best be described as a civil law system?

A. The courts are bound primarily by previous court decisions to resolve legal issues.

B. The courts are bound by both previous court decisions and codified principles or statutes.

C. The courts are allowed to consider both codified statutes and previous court decisions but are bound by neither.

D. The courts are bound by codified principles or statutes but are not bound by previous court decisions.

Which of the following is NOT required for a contract, transaction, or scheme to be classified as an investment contract?

A. Investment in a common enterprise

B. The expectation of making a profit

C. An investment of money or another asset

D. Profits derived solely from the investor's management activity

ABC Manufacturing is a private company in a jurisdiction in which the public has the legal right to be free from unreasonable search and seizure by government authorities. An investigator at ABC searches the desk of Denise, an ABC employee, and finds illegal narcotics. The investigator seizes the narcotics and turns them over to members of law enforcement. The investigator violated Denise's rights by failing to obtain a search warrant before conducting the search.

A. True

B. False

Which of the following statements concerning civil trials in common law jurisdictions is MOST ACCURATE?

A. In most civil cases, the standard of proof is the preponderance of the evidence.

B. Civil jury trials must have the same number of jurors as in criminal jury trials.

C. Jury verdicts in civil trials must always be unanimous.

D. Neither side may appeal an adverse judgment in a civil case.

Which of the following is generally NOT one of the goals of deferred prosecution agreements?

A. To get an organization to reform its policies

B. To postpone prosecution until a company conducts an extensive internal investigation

C. To allow prosecutors to resolve a case while still punishing malfeasance

D. To reduce the risk of illegal practices at an organization

Which of the following is the MOST ACCURATE statement about the UK Bribery Act?

A. The UK Bribery Act only exercises jurisdiction over individuals and corporate entities for acts of corruption when the offense occurs outside the United Kingdom.

B. Unlike the FCPA, the UK Bribery Act makes it a crime to bribe a foreign public official in connection with international business transactions.

C. Even if an organization's anti-corruption program complies with the FCPA, it might not be sufficient for the purpose of complying with the UK Bribery Act.

D. Like the FCPA, the UK Bribery Act contains an explicit exception for facilitating payments.

Under the World Bank Principles for Effective Insolvency and Creditor/Debtor Regimes (World Bank Principles); which of the following parties should administer the debtor's estate in liquidation bankruptcy proceedings?

A. The jurisdiction's commerce department or equivalent agency

B. An independent insolvency representative

C. The debtor, supervised by an independent insolvency representative

D. The creditor with the largest claim against the debtor

Which of the following is the MOST ACCURATE statement about the different types of alternative dispute resolution?

A. In an arbitration proceeding, the arbitrator acts as a judge or jury by deciding the dispute at issue on its merits.

B. The decisions reached in all arbitrations are always binding.

C. The agreements reached in mediations are generally nonbinding.

D. In a mediation session, the mediator decides who should win the dispute at issue.

If Mary uses legal means to lower her tax bill through legitimate deductions and credits, she is engaging in tax evasion.

A. True

B. False

Which of the following is TRUE in regard to authenticating evidence in most common law systems?

A. Digital records cannot be authenticated by testimony from a witness with personal knowledge.

B. For evidence to be authenticated, it must be reviewed and voted on by a jury.

C. The purpose of authentication is to ensure that hearsay is not admitted into evidence.

D. Exhibits that cannot be authenticated will not be admitted, regardless of relevance.