CONTENTS Examination, November 15, 1917 Examination, November 18, 1918 Examination, November 13, 1919 Examination, November 17, 1920 Examination, November 16, 1921 PAGE C. P. A. LAW QUESTIONS INTRODUCTION For the past four years, the writer has conducted Business Law review classes at Northwestern University twice each year for the preparation of C. P. A. candidates. He has also prepared for publication in the Students' Department of the Journal of Accountancy answers to law questions given by the Board of Examiners of the American Institute of Accountants from May, 1920, to November, 1924. In conducting the classes above mentioned, the writer has made considerable use of these questions, partly because of their inherent merit and representative character, and partly to give the students some idea of the general nature of the questions they might expect to be required to answer. One of the results of these experiences is this appearance in book form of the writer's answers to all the law questions that have been given by the American Institute of Accountants from June, 1917, to May, 1925. While the total number of these questions is not large (the number being 244), they are well chosen, are representative in character, and cover a wide range of important legal rules and principles. Taken as a whole, they form an excellent basis for review. It should be stated that the answers here given are not to be understood as model answers. In most cases, the answers are more extensive and comprehensive than would be required or would be proper in an actual examination. Further, it would be impossible for the student or candi date in the examination room to cite or quote verbatim from the various uniform laws and other statutes as the writer has done in his answers. It will be observed that each paper is given as a whole. The purpose of this is to give the reader some idea of the relative contents of each of the papers; although on the whole, the examiners have maintained a fairly uniform standard throughout. An index is included at the end to enable the reader to check up on any desired point, and to refer to questions and answers involving similar or related points of law. As the uniform laws have been frequently cited and quoted in the answers, it may be mentioned that the Uniform Negotiable Instruments Law has been adopted in every American jurisdiction save Porto Rico; the Uniform Sales Act in 27 states; the Uniform Partnership Act in 16 states; the Uniform Limited Partnership Act in 14 states; and the Uniform Stock Transfer Act in 17 states. The Uniform Conditional Sales Act, not cited in these answers, is in force in 10 states. The Bankruptcy Act and the Revenue Act, being federal laws, are, of course, in force throughout the entire United States. As to the uniform laws mentioned, the reader should make a point of reading them frequently, as to a large extent they are simply codifications of the common law. While the Federal Revenue Act has been amended in numerous ways since its inception, it was thought desirable to include answers to the income tax questions for the sake of completeness, apart from any other reason. During the past eight years of teaching Business Law, the writer has gone over numerous examination papers, and believes there is something to be said on the technique of writing such papers. The first essential, of course, is that the student know his subject thoroughly. This, however, is not always altogether sufficient. To make use of a fair analogy, one called upon to make a |