ACFE CFE - Law (Certified Fraud Examiner - Law) Practice Test 60

Question 590

A defendant files an answer in a U.S. federal civil fraud case but omits a defense that Rule 8(c) requires to be affirmatively pleaded. Which procedural issue may result?

  1. Loss of federal jurisdiction in every case
  2. Automatic conversion of an answer into a criminal charging instrument
  3. Possible forfeiture of an unpleaded affirmative defense, subject to amendment and prejudice rules
  4. Rule 12 dismissal of the claimant's complaint for missing defendant defenses

Explanation

Correct Answer

C:

Affirmative defenses generally must be pleaded in the answer; late assertion may be restricted, although courts consider amendment, notice and prejudice.

Incorrect Answers

A:

Pleading an affirmative defense concerns party procedure, not an automatic disappearance of subject-matter jurisdiction.

B:

A civil answer responds to allegations and asserts defenses; criminal indictments or informations arise under distinct procedural and prosecutorial authority.

D:

Failure to plead a defense generally affects whether the defendant can rely on it later; it does not establish that the plaintiff's substantive claims fail as pleaded.

Question 591

A defendant asserts its own fraud claim against the claimant in the same action. Which pleading mechanism may apply?

  1. Answer
  2. Third-party claim
  3. Complaint
  4. Counterclaim

Explanation

Correct Answer

D:

A counterclaim seeks affirmative relief against an opposing party within the litigation, subject to procedural rules for compulsory and permissive claims.

Incorrect Answers

A:

The answer frames contested allegations and defenses; it is not evidence resolving disputed facts by itself; the relevant step in this scenario is Counterclaim.

B:

Impleader can bring in a third party potentially liable for all or part of a claim against the defendant under applicable rules; here the operative distinction is Counterclaim.

C:

A civil complaint sets out the claim and requested remedy under governing pleading rules and initiates litigation with required filing and service; those prerequisites should not be confused with Counterclaim.

Question 592

A defendant argues another supplier must share liability and brings that supplier into the lawsuit. Which mechanism may be used?

  1. Third-party claim
  2. Counterclaim
  3. Complaint
  4. Answer

Explanation

Correct Answer

A:

Impleader can bring in a third party potentially liable for all or part of a claim against the defendant under applicable rules.

Incorrect Answers

B:

A counterclaim seeks affirmative relief against an opposing party within the litigation, subject to procedural rules for compulsory and permissive claims; third-party claim raises a different threshold from this alternative.

C:

A civil complaint sets out the claim and requested remedy under governing pleading rules and initiates litigation with required filing and service; that concept must be distinguished from Third-party claim here.

D:

The answer frames contested allegations and defenses; it is not evidence resolving disputed facts by itself; the circumstances point to Third-party claim rather than that separate test.

Question 593

A civil claimant asks for account statements held by the defendant after filing. Which mechanism governs formal exchange?

  1. Interrogatories
  2. Civil discovery
  3. Deposition
  4. Requests for admission

Explanation

Correct Answer

B:

Discovery permits requests for relevant, nonprivileged and proportional evidence under procedural rules; it is not an unlimited right to all records.

Incorrect Answers

A:

Interrogatories seek structured written answers from parties within scope, number and timing rules; they are different from nonparty subpoenas; the inquiry instead concerns Civil discovery, with its own elements.

C:

A deposition preserves sworn out-of-court testimony for discovery and potential trial use under procedural limitations; the relevant step in this scenario is Civil discovery.

D:

Requests for admission narrow disputes over facts or document genuineness; an admission can have binding procedural consequences; here the operative distinction is Civil discovery.

Question 594

In a civil suit over falsified invoices, opposing parties serve three different discovery demands. (1) Counsel questions a procurement officer under oath before trial, with testimony recorded by an authorized reporter; which discovery method is this? (2) The defendant receives numbered written questions that require sworn responses about invoice approvals; which written discovery tool applies? (3) The plaintiff asks the defendant to formally admit that specified contracts were signed on particular dates; which admission device applies? Choose THREE.

  1. Proportionality objection
  2. Requests for admission
  3. Deposition
  4. Civil discovery
  5. Interrogatories
  6. Nonparty subpoena

Explanation

Correct Answers

B:

Requests for admission narrow disputes over facts or document genuineness; an admission can have binding procedural consequences; it specifically answers numbered situation 3.

C:

A deposition preserves sworn out-of-court testimony for discovery and potential trial use under procedural limitations; it specifically answers numbered situation 1.

E:

Interrogatories seek structured written answers from parties within scope, number and timing rules; they are different from nonparty subpoenas; it specifically answers numbered situation 2.

Incorrect Answers

A:

Civil discovery must balance relevance with importance, burden, resources and needs; broad demands are not automatically enforceable; the separate questions call for deposition, interrogatories and requests for admission, while no prompt asks for this additional rule.

D:

Discovery permits requests for relevant, nonprivileged and proportional evidence under procedural rules; it is not an unlimited right to all records; the separate questions call for deposition, interrogatories and requests for admission, while no prompt asks for this additional rule.

F:

A subpoena uses formal court-authorized process to seek qualifying nonparty testimony or records, subject to privacy, burden and objection protections; the separate questions call for deposition, interrogatories and requests for admission, while no prompt asks for this additional rule.

Question 595

A plaintiff serves Federal Rule of Civil Procedure 33 interrogatories directly on an outside bank that is not a party to the lawsuit. What is the procedural problem?

  1. A bank's possession of records as grounds for party status
  2. A trial judge must answer all written questions on the bank's behalf
  3. A categorical restriction of interrogatories to personal health details
  4. Rule 33 interrogatories are ordinarily directed to parties, not nonparty banks

Explanation

Correct Answer

D:

Rule 33 permits written interrogatories served on other parties; nonparty documentary evidence generally requires a different device, such as Rule 45 process.

Incorrect Answers

A:

Holding relevant records makes the bank a potential nonparty discovery source, not an opposing litigant eligible to receive Rule 33 interrogatories from a party.

B:

The person or entity responding under the applicable rule provides answers; the judge does not serve as a witness for the bank.

C:

Rule 33 allows appropriately scoped written questions about facts relevant to civil claims and defenses; the defect here is that the requested recipient is a nonparty.

Question 596

In federal civil litigation, a party receives properly served Rule 36 requests for admission but neither answers nor objects within the applicable period. Absent relief or an extension, what consequence may follow?

  1. Converting the civil case into a criminal action when answers are late
  2. The matters may be deemed admitted under Rule 36
  3. The requesting party automatically wins punitive damages
  4. The opposing counsel automatically loses professional licensure

Explanation

Correct Answer

B:

Under Rule 36, an unanswered request may be admitted after the response period, subject to the rule's amendment or withdrawal provisions.

Incorrect Answers

A:

Rule 36 creates civil evidentiary admissions for the pending case; it does not confer a prosecutor's charging authority or change the proceeding's classification.

C:

Deemed admissions can affect proof, but they do not themselves establish the elements or amount of punitive damages.

D:

Counsel discipline requires a separate legal basis and procedure, not merely a client's missed admission deadline.

Question 597

A claimant asks a court to order a bank that is not a party to produce designated records. Which process may be required?

  1. Protective order
  2. Proportionality objection
  3. Nonparty subpoena
  4. Privilege objection

Explanation

Correct Answer

C:

A subpoena uses formal court-authorized process to seek qualifying nonparty testimony or records, subject to privacy, burden and objection protections.

Incorrect Answers

A:

Courts can restrict use and disclosure of sensitive discoverable material where the applicable good-cause or legal standard is established; the circumstances point to Nonparty subpoena rather than that separate test.

B:

Civil discovery must balance relevance with importance, burden, resources and needs; broad demands are not automatically enforceable; nonparty subpoena is the issue raised by the described conduct.

D:

Discovery ordinarily cannot compel protected attorney communications or work product absent an applicable exception or waiver; the inquiry instead concerns Nonparty subpoena, with its own elements.

Question 598

A company refuses a relevant document request because it is excessively broad and disproportionate. Which objection is being made?

  1. Privilege objection
  2. Proportionality objection
  3. Litigation preservation hold
  4. Protective order
  5. Nonparty subpoena

Explanation

Correct Answer

B:

Civil discovery must balance relevance with importance, burden, resources and needs; broad demands are not automatically enforceable.

Incorrect Answers

A:

Discovery ordinarily cannot compel protected attorney communications or work product absent an applicable exception or waiver; here the operative distinction is Proportionality objection.

C:

Reasonable preservation measures should begin when litigation is reasonably anticipated, even before formal discovery requests arrive; those prerequisites should not be confused with Proportionality objection.

D:

Courts can restrict use and disclosure of sensitive discoverable material where the applicable good-cause or legal standard is established; proportionality objection addresses the distinct legal requirement stated in the facts.

E:

A subpoena uses formal court-authorized process to seek qualifying nonparty testimony or records, subject to privacy, burden and objection protections; proportionality objection raises a different threshold from this alternative.

Question 599

A corporation identifies legally privileged correspondence in a document production request. Which objection should be evaluated?

  1. Proportionality objection
  2. Protective order
  3. Privilege objection
  4. Nonparty subpoena

Explanation

Correct Answer

C:

Discovery ordinarily cannot compel protected attorney communications or work product absent an applicable exception or waiver.

Incorrect Answers

A:

Civil discovery must balance relevance with importance, burden, resources and needs; broad demands are not automatically enforceable; that concept must be distinguished from Privilege objection here.

B:

Courts can restrict use and disclosure of sensitive discoverable material where the applicable good-cause or legal standard is established; the circumstances point to Privilege objection rather than that separate test.

D:

A subpoena uses formal court-authorized process to seek qualifying nonparty testimony or records, subject to privacy, burden and objection protections; privilege objection is the issue raised by the described conduct.

Question 600

A party seeks a court order limiting disclosure of sensitive trade secrets exchanged in discovery. Which device fits?

  1. Proportionality objection
  2. Protective order
  3. Privilege objection
  4. Confidential filing under seal

Explanation

Correct Answer

B:

Courts can restrict use and disclosure of sensitive discoverable material where the applicable good-cause or legal standard is established.

Incorrect Answers

A:

Civil discovery must balance relevance with importance, burden, resources and needs; broad demands are not automatically enforceable; the relevant step in this scenario is Protective order.

C:

Discovery ordinarily cannot compel protected attorney communications or work product absent an applicable exception or waiver; here the operative distinction is Protective order.

D:

Sealing concerns the public court docket and generally demands its own justification. A discovery protective order can more directly control what receiving parties may do with sensitive trade-secret material.

Certified Fraud Examiner - Law (CFE - Law) Practice Tests