CFE-Law Free Practice Test

Which of the following is the MOST ACCURATE statement about the circumstances under which a conflict of interest claim would be actionable against an agent?

1. A. The agent must have purported to act on behalf of or as an agent for an identified principal
2. B. The agent must have had an undisclosed interest m a matter that could influence their professional role
3. C. The agent must have informed the principal of their actions
4. D. The agent must have been authorized by someone with actual authority to carry out the transaction at issue

Correct Answer: B

Each day, Rachel purchases $14 500 in bearer instruments with cash from a bank where all currency transactions above 515,000 must be reported to the government Rachets actions are a red flag of which of the following schemes'?

1. A. Channel stuffing
2. B. Alternative remittance system
3. C. Structuring
4. D. Real estate laundering

Correct Answer: C

At the end of a civil proceeding, the court finds the defendant, a company, liable and orders it to pay a large sum of money to compensate for the plaintiffs losses. Which of the following BEST describes this type of remedy?

1. A. Declaratory relief
2. B. Carnages
3. C. Equitable relief
4. D. Injunction

Correct Answer: B

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

1. A. The jurisdiction's commerce department or equivalent agency
2. B. The creditor with the largest claim against the debtor
3. C. The debtor, supervised by an independent insolvency representative
4. D. An independent insolvency representative

Correct Answer: D

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

1. A. The courts are allowed to consider both codified statutes and previous court decisions but are bound by neither
2. B. The courts are bound by both previous court decisions and codified principles or statutes
3. C. The courts are bound primarily by previous court decisions to reserve legal issues
4. D. The courts are bound by codified principles or statures but are not bound by previous court decisions

Correct Answer: D