Flash cards

Question 1

Define “Contract”

Answer 1

Agreement supported by Consideration between two or more persons with competent capacity for a legal purpose.

Question 2

Define “Express Contract”

Answer 2

a contract formed wholly by oral and/or written words.

Question 3

What is a bilateral contract?

Answer 3

A promise in exchange for a promise

Question 4

Define “Quasi-Contract”

Answer 4

Contract Imposed by law, despite the fact no actual intent to make contract exists, to prevent unjust enrichment.

Question 5

Define “implied-in-fact Contract”

Answer 5

A contract formed at least in part based on conduct of parties

Question 6

What constitutes an executory contract?

Answer 6

Contract not fully performed on both sides

Question 7

What is an executed contract?

Answer 7

Contract fully performed by both sides

Question 8

What is a unilateral contract?

Answer 8

A promise in exchange for an act

Question 9

Define “voidable Contract”

Answer 9

A valid contract for which a party has the option to avoid liability.

Question 10

Define void “contract”

Answer 10

Contract that violates the law or lacks an element that results in courts lacking authority to have parties honor it.

Question 11

List the enforceability classifications of contracts

Answer 11

Valid, Void, Voidable, Unenforceable

Question 12

Define “Unenforceable contract”

Answer 12

Valid contract that cannot be enforced due to a legal defense,

Question 13

List the classifications of contracts in terms of degree of performance completion

Answer 13

Executed and Executory

Question 14

List the sources of contract law and the items to which they apply

Answer 14

Common Law - real estate & Services

UCC - Goods

Question 15

Describe Foreign Corrupt Practices Act

Answer 15

A US federal law known primarily for two of it’s main provisions, one addresses accounting transparency requirements under SEC Act of 1934 and another concerning bribery of foreign officials

Question 16

What brought the Foreign Corrupt Practices Act?

Answer 16

Post- Watergate response to illegal foreign bribes paid by US Companies

Question 17

What is the focus of internal accounting controls?

Answer 17

focus on asset accountability

Question 18

What is the focus of internal financial controls?

Answer 18

controls focus on integrity of information flowing into F/S

Question 19

Describe RICO

Answer 19

united states federal law that provides for extended criminal penalties and a civil cause of action for acts performed as an ongoing criminal organization.

Focuses on racketeering.

Question 20

4 elements of a violation of the RICO Act as outlined in section 196(C)

Answer 20

1. conduct
2. of an enterprise
3. through a pattern
4. of racketeering activity

Question 21

What is the purpose of the RICO Act?

Answer 21

to prevent organized crimes infiltration into legitimate business

Question 22

Describe condition that must exist for attachment of mail or wire fraud liability

Answer 22

Use of mail or wires must be an essential part of the fraudulent scheme for liability to attach

Question 23

list 2 federal fraud provisions under which accountants can be held criminally liable?

Answer 23

1. Mail fraud

2. wire fraud

Question 24

What actions are considered SOX federal securities crime provision?

Answer 24

Whoever knowingly executes, or attempts to execute, a scheme or artiface–
1. to defraud any person in connection with any security
or
2. to obtain, by means of false or fraudelent pretenses, representations, or promises, any money or property in connection with purchase or sale of any security of an issuer
shall be fined under this title or imprisoned not more tha 25 years or both.

Question 25

List Activities that are punishable under SOX

Answer 25

1. failure to retain audit records for 7 years
2. destruction of records in federal matter
3. Corrupt tampering with documents