Question Details

1.	A Shell Corporation: part 2



21.Wrongful discharge action by P, a law professor, against D University, his employer. P claims he was fired without cause. D claims it fired P because rather than teaching Evidence, P taught quantum mechanics. P denies this. To prove that P was teaching quantum mechanics, D calls W, a student in P- class, to testify about the contents of a certain class session. D then asks W if she took notes during the class on that day and whether the notes accurately reflected what took place in the classroom. W answers “yes” to both questions. D then asks W to read aloud a page of her notes. The notes state that D discussed Schroedinger- cat, a quantum mechanics thought experiment. P makes a hearsay objection.
Which of the following statements is most accurate?

A. W- notes are not hearsay because they are not offered to prove the truth of P- statements about quantum mechanics. The notes may be read into the record.
B. W- notes are hearsay and because W had no legal duty to record P- words
accurately, no hearsay exception applies.
C. W- notes are hearsay and inadmissible under the doctrine of past recollection recorded.
D. W- notes are not hearsay because D is merely using them to refresh the
witness’ recollection. They may therefore be read into the record.
E. W- notes are hearsay but admissible under the doctrine of past recollection recorded


22. Breach of contract action by P, a construction contractor, against D, a lumber wholesaler. P claims that D failed to make a timely delivery of a load of lumber, causing P to suffer significant anticipated consequential damages. D claims it delivered the lumber on time. P calls W, its custodian of records. P- attorney shows W a document, which W identifies as a record of the kind prepared by its job foreperson any time building materials are delivered to a construction site. W testifies that P kept the document in the company files, as was customary. The document appears to concern the questioned shipment, and bears a delivery date two weeks after the shipment was due. Evidence shows that the person who dated the document was unaware of any potential dispute between P and D. P offers the document into evidence.
Which of the following statements is correct?

A. The document is hearsay and admissible as a business record.
B. The document is hearsay and admissible under the exception for past recollection recorded.
C. The document is hearsay and does not satisfy the business records exception because W did not have personal knowledge of the accuracy of its contents.
D. The document is not hearsay. It was used solely to refresh the recollection of the witness.

23. step in the money laundering process?:

A. A scheme to defraud
B. Use of the mail system
C. Both A and B
D.None of the above

24.Federal prosecution of Dave for the murder of Victor. Victor- killer lay in wait outside Victor- house one rainy night, and shot Victor when Victor returned. That same night, Dave went out alone. When Dave returned an hour later, Wendy, (Dave- wife), and a friend, who had been watching television together, noticed that Dave- clothes were wet and his shoes muddy. At the time of the trial, Wendy- friend is in another country. The prosecutor wishes to have Wendy testify as to what she saw that night. Wendy is willing to testify but Dave objects.
How should the court rule?

A. The court should sustain the objection based on the privilege for confidential communications between spouses,
B. The court should sustain the objection based on the privilege against adverse spousal testimony,
C. The court should sustain the objection based on both privileges.
D. The court should overrule the objection.


25. A trust can be described as:

A. A legal entity
B. An illegal device for concealing assets from one- creditors.
C. A relationship wherein the trustee is the legal owner of assets and acts in the interests of the beneficiary.
D. A device or entity that can be used for both legal and illegal purposes.
E. None of the above.

26. Comity refers to the fact that:

A. Courts in one jurisdiction will recognize and accede to a ruling made in the
courts of another country.
B. A long-arm statue must satisfy certain requirements for service of process to
be served on a non-resident.
C. An offshore tax haven jurisdiction does not require a person to be a citizen to take advantage of opening a trust there.
D. A and B
E. None of the above.

27. The four parts to a Panamanian Private Interest Foundation are:

A. Founder, foundation council, protector, and settlor.
B. Settlor, foundation council, protector, and beneficiary.
C. Founder, foundation council, protector and beneficiary.
D. Founder, foundation council, beneficiary and settlor.
E. None of the above.

28. The main objective in using a nominee is often concealment. Thus, use of a nominee applies mostly to:

A. The integration stage.
B. Wire transfers.
C. Establishing a trust or shell corporation.
D. The layering stage.
E. The placement stage.


29. In the initial or placement stage of money laundering, the launderer:

A. Engages in a series of conversions or movements of the funds to distance them from their source.
B. Introduces his illegal profits into the financial system.
C. Channels funds through the purchase and sales of investment instruments.
D. Wires the money to an offshore bank account and then has the money wired back to a U.S. account.
E. None of the above.

30. Forensic accountants need to develop a working knowledge of offshore trusts because:

A. 30 percent of the world- wealth is contained in offshore asset protection trusts.
B. Many ill-gotten gains are placed in offshore trusts.
C. Offshore trusts are used only for illegal purposes.
D. A and B.
E. None of the above.

31. Possession of documents that may help identify an offshore trust or bank account may be a matter of good fortune.
Indicators of hidden assets may include the following:

A. Withdrawals of substantial amounts of money in cash and issuing checks to unfamiliar parties.
B. Passports indicating trips to tax havens and e-mails to representatives of institutions from offshore havens.
C. Any suspicious activity such as an overseas phone call.
D. A and B.
E. None of the above.

32. One approach to defining terrorism is to eschew a general principled definition in favor of a listing of particular criminal acts that are often committed by terrorists.
One difficulty with this approach is :

A. That it is not inclusive enough possibly excluding certain acts of terrorism.
B. That it captures a broad range of conduct that may have little to do with conventional understandings of terrorism.
C. That it leaves law enforcement officers little discretion in charging defendants with various acts of terrorism.
D. None of the above.


33. International divergence in anti-terrorism financing legislation is a serious concern because:

A. Many countries have enacted anti-terrorism financing laws that are
inconsistent with the U.N Financing of Terrorism Convention.
B. Effective enforcement of legislation against financing of terrorism requires
significant amounts of international cooperation on matters such as the investigation of financial transactions and extradition of suspects.
C. Interpol has a more difficult time reconciling the differences in various
countries’ laws.
D. None of the above.

34. Recently, Congress amended the FCPA by the addition of a provision that:

A. An award of 10 to 30 percent of any monetary sanction in excess of $2 million to any eligible whistleblower
B. An award of 10 to 30 percent of any monetary sanction in excess of $1 million to any eligible whistleblower
C. Calls for a mandatory prison term of 2 years for any bribery offense involving more than $2 million in the value of business to be obtained
D. Calls for a mandatory prison term of 1 year for any bribery offense involving more than $2 million in the value of business to be obtained
E. None of the above

35. An according-to-rule benefit confers:

A. Something on the bribe-taker that he or she would have received anyway
B. Are sometimes deemed facilitation or grease payments
C. Something on the bribe-giver that the briber should have received under the rules
D. B and C
E.None of the above

36. The two primary themes of the “FCPA” are that:

A. Bribery is unethical and should not go unpunished
B. If payment is made to an official of a foreign government, whether proper or corrupt, the payment must be reported according to GAAP
C. No entity or person may offer or pay anything of value to a foreign official that would cause the official to misuse power or influence
D. B and C
E. None of the above
37. Neither the Federal Rules of Civil Procedure nor the Rules of Evidence specify a procedure for Daubert challenges. The Supreme Court- opinions also fail to specify a required procedure. Despite the varied paths a Daubert challenge can take, there are today two typical procedures:

A. A challenge to an expert made in conjunction with a motion for summary
judgment or a challenge to an expert made in conjunction with a motion for judgment as a matter of law.
B. A challenge to an expert made in conjunction with a motion for summary judgment or a challenge in the nature of a motion in limine
C. A challenge made to an expert in conjunction with a motion for judgment as a matter of law or a challenge in the nature of a motion in limine.
D. None of the above.

38. Which of the following statements is incorrect?

A. The accounting provisions are broader than the anti-bribery provisions
B. Officers, directors, employees, agents and stockholders of foreign persons are subject to the FCPA if they commit a violation while in the US
C. A foreign citizen who is an agent of a US concern, is subject to the FCPA for acts committed outside the US
D. Under the FCPA, “corruptly” makes clear that an offer, payment, promise or gift must be intended to induce the recipient to misuse an official position to wrongfully direct business to the payer or obtain a favorable regulation
E. None of the above

39. Two main functions of expert testimony are:

A. Interpret the facts
B. Help the jury understand the law
C. Establish the facts
D. Educate the judge about the facts
E. A and C
F. None of the above

40. Federal courts consider various factors when deciding upon the admissibility of expert witness testimony. These factors include:

A. Whether or not a theory or technique can be tested.
B. Whether the theory or technique has been subjected to peer review and publication and what is the technique- known or potential rate of error.
C. Whether the theory or technique is generally accepted within its scientific community and whether the theory or technique existed prior to litigation.
D. A, B, and C.
E. B and C.