rtage Inc. agrees to pick up two truckloads of housewares for Discount Corporation and store the contents to be delivered later. After Cartage unloads the goods at its storage facility, some of them disappear from the loading dock. A court will presume that a. the goods were stolen through no fault of Cartage. b.

rtage Inc. agrees to pick up two truckloads of housewares for Discount Corporation and store the contents to be delivered later. After Cartage unloads the goods at its storage facility, some of them disappear from the loading dock. A court will presume that a. the goods were stolen through no fault of Cartage. b.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter7: Losses—deductions And Limitations

Section: Chapter Questions

Problem 49P

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Black is a Certified Fraud Examiner for the ABC Company. Green, an employee in the accounting department, steals $40,000 worth of merchandise from the store’s warehoused. If Green’s cas is eventually referred to the police by Black, they will probably charge Green with: A. Breach of contract. B. Breach of fiduciary duty. C. Embezzlement. D. Larceny.
Saul sold goods to Bruce, warranting that the goods were of a specified quality. The goods were not of the quality warranted, however, and Saul knew this at the time of the sale. Bruce drew and delivered a check payable to Saul and drawn on Third National Bank in the amount of the purchase price. Bruce subsequently discovered the goods were faulty and stopped payment on the check. Third National refused to pay Saul on the check. a. What are the arguments that Saul can recover (1) from Bruce and (2) from Third National? b. What are the arguments that (1) Bruce should prevail? and (2) Third National should prevail? c. Who should prevail? Why?
During an internal investigation, Black, a Certified Fraud Examiner, interviewed Green, a fraud suspect. Although Green wanted to leave in the middle of the interview, Black blocked the exit and prevented him from leaving. Green subsequently confessed to committing fraud. If, under these facts, Green files a lawsuit for false imprisonment against Black, Black will likely: A. Win the case because the qualified business privilege protects investigators conducting internal investigations. B. Win the case because Green confessed to the fraud. C. Lose the case if a trier of fact concludes that he restrained Green without consent or legal justification. D. Lose the cans because Green did not leave the interview.
Green, a police officer, suspected that Brown was engaged in illegal racketeering activities. To obtain evidence of Brown’s illegal conduct, Green place a bug in Brown’s home without a warrant. Green may have violated which of Brown’s constitutional rights? A. Fourteenth Amendments rights. B. Fifth Amendments rights. C. Sixth Amendments rights. D. Fourth Amendments rights.
During the interview of a suspect in an embezzlement case, several common themes are developed that make the offense seem morally acceptable to the suspect. Which of the following is NOT commonly used with embezzlers and other fraud offenders? A. “Borrowing” versus “stealing” B. “Did it for the family” C. “Not being paid enough” D. “Protesting an unjust law”
Baker, an employee of ABC Corporation, had complete control of the purchasing function for his department. Baker authorized the purchase of several thousand dollars’ worth of supplies which were unnecessary to ABC. Baker used these supplies to make improvements to his home. This is an example of what kind of fraud? a. Check tampering b. Theft of inventory c. Personal purchases with company funds d. Misuse of company assets
Which of the following items is not true about fraud?a. It can cause injury or damage to another party.b. It is an intentional misrepresentation of facts.c. Its damages must exceed a threshold of $150,000.d. It is designed to persuade another party to act in a way that causes injury or damage tothat party.
Stan sold goods to Bill in good faith, believing him to be a principal. Bill in fact was acting as agent for Nancy and was within the scope of his authority. The goods were charged to Bill, and on his refusal to pay, Stan sued Bill for the purchase price. While this action was pending, Stan learned of Bill’s relationship with Nancy. Nevertheless, thirty days after learning of that relationship, Stan obtained judgment against Bill and had an execution issued that was never satisfied. Three months after rendition of the judgment, Stan sued Nancy for the purchase price of the goods. Is Nancy liable? Explain.
A purchasing agent for a home improvement center is also part owner in a wholesale lumber company. The agent has sole discretion in selecting vendors for the lumber sold through the center. The agent directs a disproportionate number of purchase orders to his company, which charges above-market prices for its products. The agent’s financial interest in the supplier is unknown to his employer.What type of fraud is this and what controls can be implemented to prevent or detect the fraud?
The Sarbanes-Oxley Act (SOX) contains all of the following titles that have a direct impact on forensic accounting and fraud except: Group of answer choices Title 4 prohibits personal loans and requires certain financial disclosures. Title 11 provides a possible 25-year prison sentence for anyone altering, destroying, mutilating, or concealing a record, document, or other object (or otherwise impeding) for an official proceeding. Title 9 increases maximum prison sentences for mail and wire fraud from 5 to 20 years. Willfully and knowingly certifying financial reports not in compliance with the Act is now a criminal offense. Title 4 prohibits personal loans and requires certain financial disclosures.
Boracay wrote a complete promissory note payable to bearer. The note was stolen and his signature forged. It ends up in the hands of a holder in due course. Which of the following is true? a. Boracay is not liable because the forged signature is inoperative. b. Boracay can set up the defense of want of delivery of a complete instrument. c. Boracay is liable because he is an indorser. d. Boracay is liable to a holder in due course.
You are a sales associate with a large department store chain. You have noticed that a fellow sales associate has been taking high-ticket items home with her. You have checked the sales records and she has not been paying for the items. You should: Ignore the conduct because it is not your business. O Ignore the conduct because she will be caught eventually. O Confront her with your knowledge. Report her conduct to the police