Quiz 23-28 Flashcards Preview

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Flashcards in Quiz 23-28 Deck (28):

Lack of notification of the assignment of contract has...

No bearing on contract's validity


Generally an assignor will give...

notification of assignment of contract, but it is not required


Assigning a contract does not relieve the assignor of...

Liability for fulfilling the contract


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...

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


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

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


Under Circular 230, the practitioner may...

Retain a copy of records returned to the client


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

Not be a negotiable instrument


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

Either on demand or at a definite time


Someone's death cannot...

Be determined at a definite time


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

Not affect the instrument's negotiability


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

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


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

Take place tomorrow or Never take place


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

1 Warrants that the certificate is genuine

2 and has not been materially altered


The rules of negotiability of investment securities follow...

The same rules of negotiation of commercial paper under UCC


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

Sell stock


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

Shut down


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

1 Stockholder is under a shareholder's agreement and

2 has received restricted stock subject to terms of that agreement


The mere endorsement of shares of stock...

Completes negotiation


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

Not have to wait until corporation issues new stock to buyer


An individual becomes a bona ride purchaser of share upon...

Completion of endorsement


Contract terms may be contained in multiple documents under...

The Statute of frauds


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

1 name of parties

2 subject matter

3 material terms and conditions


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

Certified subsequent to the endorsements


Under the UCC, certification of a check is...



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

1 the drawer and

2 all prior endorsers


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

Justice Department


3 duties of SEC

1 requiring disclosure of facts about listed securities

2 regulating securities brokers and

3 investigating securities fraud


When a seller makes an assignment, they...

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

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