Quiz 23-28

Question 1

Lack of notification of the assignment of contract has…

Answer 1

No bearing on contract’s validity

Question 2

Generally an assignor will give…

Answer 2

notification of assignment of contract, but it is not required

Question 3

Assigning a contract does not relieve the assignor of…

Answer 3

Liability for fulfilling the contract

Question 4

When International CPA’s undertake audit work of a foreign subsidiary of a U.S. company and the work is relied upon by a U.S. CPA firm, the international CPA’s work is…

Answer 4

Subject to SOX since it is relied upon by the U.S. firm

Question 5

Circular 230 advises that the tax payer may request and receive…

Answer 5

Any/all records that are necessary to comply with taxpayer’s
Federal tax obligation

Question 6

Under Circular 230, the practitioner may…

Answer 6

Retain a copy of records returned to the client

Question 7

If an instrument is payable 6 months after the death of the maker it would…

Answer 7

Not be a negotiable instrument

Question 8

In order to be a negotiable instrument it must be payable…

Answer 8

Either on demand or at a definite time

Question 9

Someone’s death cannot…

Answer 9

Be determined at a definite time

Question 10

Promising to provide additional collateral if there is a decrease in value of existing collateral will…

Answer 10

Not affect the instrument’s negotiability

Question 11

An instrument is nonnegotiable if it is not payable at a definite time, example

Answer 11

I promise to pay to the order of within 5 days of the sale of my land

Question 12

The sale of land, specified on a nonnegotiable instrument may…

Answer 12

Take place tomorrow or Never take place

Question 13

Under the UCC, rules on Investment Contracts, by transferring a stock certificate to another party, the original owner…2

Answer 13

1 Warrants that the certificate is genuine

2 and has not been materially altered

Question 14

The rules of negotiability of investment securities follow…

Answer 14

The same rules of negotiation of commercial paper under UCC

Question 15

A sales agreement does not have to be in writing and signed by both parties to…

Answer 15

Sell stock

Question 16

If contracts had to be in writing the entire NY stock exchange would…

Answer 16

Shut down

Question 17

A stockholder normally has the right to sell his or her shares without getting permission from the issuer. The exception to this is when the…2

Answer 17

1 Stockholder is under a shareholder’s agreement and

2 has received restricted stock subject to terms of that agreement

Question 18

The mere endorsement of shares of stock…

Answer 18

Completes negotiation

Question 19

The mere endorsement of shares of stock completes negotiation so that the buyer does not have to…

Answer 19

Not have to wait until corporation issues new stock to buyer

Question 20

An individual becomes a bona ride purchaser of share upon…

Answer 20

Completion of endorsement

Question 21

Contract terms may be contained in multiple documents under…

Answer 21

The Statute of frauds

Question 22

The writing of documents under the Statute of frauds should contain…3

Answer 22

1 name of parties

2 subject matter

3 material terms and conditions

Question 23

All endorsers would be discharged from liability if the check was…

Answer 23

Certified subsequent to the endorsements

Question 24

Under the UCC, certification of a check is…

Answer 24

Acceptance

Question 25

Where a holder procures certification, which parties are discharged? 2

Answer 25

1 the drawer and

2 all prior endorsers

Question 26

Prosecution of criminal violations of federal securities laws is handled by the…

Answer 26

Justice Department

Question 27

3 duties of SEC

Answer 27

1 requiring disclosure of facts about listed securities

2 regulating securities brokers and

3 investigating securities fraud

Question 28

When a seller makes an assignment, they…

Answer 28

Impliedly warrant a lack of any fact impairing the value of the assignment