CFE - Law

CFE - Law practice questions, page 4 of 6, with answer review and explanations.

Question 16

Ramona is investigating Eugene for misconduct. Ramona and Eugene both work for Elek-Tek, which operates in a jurisdiction with civil laws for defamation, invasion of privacy, and conflict of interest. During the investigation, Ramona obtained information that Eugene is cheating on his spouse. Ramona told a large group of Elek-Tek employees that Eugene was committing adultery, which turned out to be true. Which cause of action would give Eugene the BEST chance for success in a civil suit against Ramona?

  1. Defamation
  2. Conflict of interest
  3. Public disclosure of private facts
  4. Slander

Question 17

A business files for bankruptcy with the goal of obtaining relief from creditors so that it can rearrange its financial affairs and continue as a going concern. Which of the following describes this type of bankruptcy proceeding?

  1. Debt dismissal bankruptcy
  2. Liquidation bankruptcy
  3. Reorganization bankruptcy
  4. Debt adjustment bankruptcy

Question 18

Each day, Rachel purchases $14,500 in bearer instruments with cash from a bank where all currency transactions above $15,000 must be reported to the government. Rachel's actions are a red flag of which of the following schemes?

  1. Real estate laundering
  2. Structuring
  3. Alternative remittance system
  4. Channel stuffing

Question 19

In most civil law jurisdictions, which of the following BEST describes when a party is required to begin taking steps to preserve and produce relevant evidence?

  1. When the charging documents are filed
  2. When the party receives a service of process
  3. When litigation has started
  4. When the court orders such steps to be taken

Question 20

All of the following are common legal defenses for tax evasion EXCEPT:

  1. Mental illness of the taxpayer
  2. The actions were tax avoidance, not tax evasion
  3. Death of the taxpayer
  4. The taxpayer's reliance on an attorney or accountant