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Free ACFE CFE-Law Practice Exam with Questions & Answers | Set: 4

Questions 31

Which of the following is required for a contract, transaction, or scheme to qualify as an investment contract?

Options:
A.

The investment must not have been made with expectations of making a profit.

B.

The investment must be made in cash.

C.

The investment is in a common enterprise.

D.

The investment activity is managed solely by the efforts of the investor and no others.

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Questions 32

Which of the following situations would constitute a violation of the US Foreign Corrupt Practices Act (FCPA)

Options:
A.

A private U.S company pays a S2.000 foreign corporation fee that is required in order to do business within the country

B.

A private UK company transfers $25,000 to a Chilean public official to influence the award of lucrative overseas contracts.

C.

A private U S company transfers $45,000 to a foreign official to influence the award of a public construction contract.

D.

A private U.S company transfers $100,000 to the sole proprietor of a Brazilian company to influence the award of a commercial imports contract.

Questions 33

Slater has been appointed as a bankruptcy administrator. According to the recommendations of the World Bank Principles for Effective Insolvency and Creditor/Debtor Regimes (World Bank Principles), which of the following statements concerning Slater ' s role as bankruptcy administrator is MOST ACCURATE?

Options:
A.

Slater may investigate all contracts the debtor entered into, but he does not have the power to cancel them without the debtor ' s permission.

B.

Slater may request relevant information from the debtor ' s agents or others with knowledge of the debtor ' s affairs, but he cannot force them to provide it.

C.

Slater may collect, preserve, and dispose of the debtor ' s property.

D.

Slater may not interfere with contracts signed by the debtor.

Questions 34

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

Options:
A.

The courts are allowed to consider both codified statutes and previous court decisions but are bound by neither

B.

The courts are bound by both previous court decisions and codified principles or statutes

C.

The courts are bound primarily by previous court decisions to reserve legal issues

D.

The courts are bound by codified principles or statures but are not bound by previous court decisions

Questions 35

When perpetrating a bustout scheme, an individual or business typically performs which of the following actions?

Options:
A.

Files a bankruptcy petition under the name of an uninvolved person

B.

Obtains a business insurance policy using illicit assets

C.

Uses credit to purchase a considerable amount of goods

D.

Colludes with inventory suppliers to conceal assets

Questions 36

Which of the following is a red flag that might be indicative of an entity operating a security business without the proper license or registration?

Options:
A.

There are justified gaps in the work history of promoters at the entity.

B.

The entity is known to have a history of regulatory problems.

C.

There is a lack of customer complaints against the entity.

D.

The entity ' s website contains detailed background information.

Questions 37

Company A used Company B to recover damages for the breach of a contract. In the same proceeding. Company B sought damages for an allegation that Company A fraudulently induced Company B into entering the contract. In this case, what would Company B ' s claim against Company A be called?

Options:
A.

Counterclaim

B.

Collateral attack

C.

Reversal

D.

Cross-claim

Questions 38

Antonio is investigating Sam on behalf of their employer, XYZ Company. During the investigation, Antonio tells a group of their coworkers who are not involved in the investigation that he discovered Sam has a serious gambling addiction, which is true. Assuming that their jurisdiction has civil laws for all of the following causes of action, which one would give Sam the BEST chance for success if he decides to bring a civil action against Antonio?

Options:
A.

Public disclosure of private facts

B.

Negligent misrepresentation

C.

Slander

D.

Defamation

Questions 39

Which of the following is the most accurate statement about the litigation privilege in common law jurisdictions?

Options:
A.

The litigation privilege only protects documents and materials prepared in anticipation of litigation.

B.

The litigation privilege only protects documents and materials prepared after litigation commences.

C.

The litigation privilege does not protect documents and materials prepared by third-party agents, such as fraud examiners.

D.

The primary purpose of the litigation privilege is to protect confidential communications between a client and the client ' s legal representative.

Questions 40

Consents to searches by government agents that are obtained by force, duress, or bribery are NOT effective under the law and do NOT eliminate the need for a search warrant.

Options:
A.

True

B.

False

Exam Code: CFE-Law
Certification Provider: ACFE
Exam Name: Certified Fraud Examiner (CFE) - Law
Last Update: Mar 29, 2026
Questions: 212

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