Law Flashcards
7 cards from real ACFE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Law flashcards as text
Under the Foreign Corrupt Practices Act (FCPA), which of the following is a valid affirmative defense?
Answer: The payment was a reasonable and bona fide business expenditure directly related to the promotion of products or services
The FCPA provides an affirmative defense for payments that are lawful under the written laws of the foreign country or constitute reasonable bona fide business expenditures.
Which doctrine allows a court to void a contract if one party used unfair bargaining power to obtain grossly one-sided terms?
Answer: Unconscionability
Unconscionability permits courts to refuse enforcement of contracts that are oppressively one-sided or result from unfair bargaining processes.
A Suspicious Activity Report (SAR) filed under the Bank Secrecy Act must generally be filed within how many days of detecting a suspicious transaction?
Answer: 30 days
Financial institutions must file a SAR within 30 days of initially detecting facts that may constitute a basis for filing, or 60 days if no suspect is identified.
Under the Sarbanes-Oxley Act Section 806, which employees are protected from retaliation for reporting fraud?
Answer: Employees of publicly traded companies and their contractors who report securities violations
SOX Section 806 protects employees of publicly traded companies and their subsidiaries or contractors who report violations of securities laws or SEC rules.
In a civil fraud lawsuit, the burden of proof standard typically required is:
Answer: Beyond a reasonable doubt
Most civil fraud claims require proof by a preponderance of the evidence, meaning it is more likely than not that fraud occurred.
Which federal statute specifically criminalizes computer fraud and unauthorized access to protected computer systems?
Answer: Computer Fraud and Abuse Act
The Computer Fraud and Abuse Act (CFAA) is the primary federal law criminalizing unauthorized access to computer systems and related fraud.
The legal concept of 'piercing the corporate veil' allows creditors to:
Answer: Hold shareholders personally liable for corporate debts when the corporate form is misused
Piercing the corporate veil is an equitable remedy allowing courts to hold shareholders personally liable when the corporate form is used to perpetrate fraud or injustice.