CFE-LAW Online Practice Questions and Answers

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?

A. Debt dismissal bankruptcy

B. Liquidation bankruptcy

C. Reorganization bankruptcy

D. Debt adjustment bankruptcy

One of the purposes of securities regulation is to maintain market confidence.

A. True

B. False

The government filed a civil action against a politician for accepting real estate as a bribe. There is a possibility that the politician could transfer the real estate to a third party before the court enters a final judgment. Which type of order should the government seek from the court to prevent the politician from transferring the real estate?

A. Preservation order

B. Litigation hold

C. Prejudgment attachment

D. Declaratory relief

A prosecutor filed criminal charges against Rosa, claiming that she stole Juan's personal information and sold his identity on the dark web. Juan wants to file a civil lawsuit against Rosa to recover damages arising from the identity theft. Can Juan file the civil action before the criminal action against Rosa is completed?

A. Yes, the civil action can be filed if the jurisdiction permits parallel proceedings.

B. No, the civil action cannot be filed if the jurisdiction prohibits double jeopardy.

C. No, the civil action cannot be filed if the jurisdiction prohibits counterclaims.

D. Yes, the civil action can be filed if the jurisdiction permits analogous claims.

Which of the following can affect the rights that employees may have during an internal investigation?

A. Existence of violation red flags

B. Existence of interstate compacts

C. Existence of an employment contract

D. Existence of fraud risk factors

Which of the following typically does NOT have to be present for communications between an attorney and the attorney's client to be protected by a legal professional privilege?

A. Communication between a legal advisor and a client

B. Purpose of the communications was to seek or provide legal advice

C. A lawsuit has been filed

D. Intent to keep the communications confidential

Which of the following statements concerning front businesses as a method of laundering money is the LEAST accurate?

A. Front businesses provide cover for delivery and transportation related to illegal activity.

B. A red flag of a front business is the observation of a large number of customers during peak operating hours.

C. From criminals' perspective, a disadvantage to front businesses is that they generally must pay taxes on the illicit income.

D. Front businesses benefit launderers by providing a safe place to manage criminal activities.

Which of the following is NOT an element generally required to establish a claim alleging the common law civil wrong for intentional infliction of emotional distress?

A. The defendant acted intentionally or recklessly.

B. The victim suffered distress as a result of the defendant's conduct.

C. The victim was an employee of the defendant.

D. The defendant engaged in extreme and outrageous conduct.

Which of the following statements is MOST ACCURATE regarding cross-examination of witnesses in adversarial systems?

A. If an expert witness's opinion is at risk of being distorted during cross-examination, the expert should avoid answering the question.

B. The general rule is for opposing counsel to cross-examine all witnesses to ensure that important details are not missed by the fact finder.

C. If opposing counsel asks an overly complex question during cross-examination, witnesses should ask for the question to be rephrased.

D. The primary purpose of cross-examination is for opposing counsel to discover information previously unknown to opposing counsel.

Which of the following is NOT an element that must be proven to establish a perjury offense?

A. The defendant made a false statement that was material.

B. The defendant made a false statement in a court of law.

C. The defendant made a false statement while under oath.

D. The defendant made the statement with knowledge of its falsity.