Question 1

Johnny Little borrows $300,000 from Bank Bigge in exchange for giving the bank a mortgage on his farmland.Bank Bigge is a:

Accepted Answer

A) Debtor. 
B) Unsecured creditor. 
C) Secured creditor. 
D) Guarantor. 
A) Debtor. 
B) Unsecured creditor. 
C) Secured creditor. 
D) Guarantor. C

Question 2

A document that describes the way a notice or document was brought to the attention of another party to Court proceedings is called:

Accepted Answer

A) An affidavit. 
B) An affidavit of service. 
C) An affidavit of debt. 
D) A writ of execution. 
A) An affidavit. 
B) An affidavit of service. 
C) An affidavit of debt. 
D) A writ of execution. B

Question 3

The form of ADR that takes place when a third party helps two or more parties to a dispute to reach their own agreement about how a legal matter can be resolved is called:

Accepted Answer

A) Counselling. 
B) Mediation 
C) Arbitration. 
D) Litigation. 
A) Counselling. 
B) Mediation 
C) Arbitration. 
D) Litigation. B

Question 4

A writ of execution which allows an officer of the court to seize the debtor's assets is also known as:

Accepted Answer

A) A warrant of execution. 
B) A search warrant. 
C) An executory writ of summons. 
D) A garnishee summons. 
A) A warrant of execution. 
B) A search warrant. 
C) An executory writ of summons. 
D) A garnishee summons.

Question 5

What is a 'guarantee'?

Accepted Answer

A) An arrangement in which a secured creditor has the right to sell the charged property on default by the debtor. 
B) A type of mortgage. 
C) An arrangement in which a person promises to repay a loan in the event that the debtor fails to do so. 
D) Security for a loan to a company over a particular asset or class of assets. 
A) An arrangement in which a secured creditor has the right to sell the charged property on default by the debtor. 
B) A type of mortgage. 
C) An arrangement in which a person promises to repay a loan in the event that the debtor fails to do so. 
D) Security for a loan to a company over a particular asset or class of assets.

Question 6

A 'debtor' is:

Accepted Answer

A) A person who is bankrupt or insolvent. 
B) A person whose liabilities exceed their assets. 
C) A person who owes money to another. 
D) A person to whom money is owed under a mortgage agreement. 
A) A person who is bankrupt or insolvent. 
B) A person whose liabilities exceed their assets. 
C) A person who owes money to another. 
D) A person to whom money is owed under a mortgage agreement.

Question 7

To which of the following transactions does the National Credit Code apply?

Accepted Answer

A) A retailer who allows their customer to pay for goods and services on credit. 
B) A creditor who offers short term credit where the creditor's fees and charges are less than 5% of the loan and the interest rate is less than 24% 
C) An employer who offers his employee a loan. 
D) A creditor who offers a housing loan. 
A) A retailer who allows their customer to pay for goods and services on credit. 
B) A creditor who offers short term credit where the creditor's fees and charges are less than 5% of the loan and the interest rate is less than 24% 
C) An employer who offers his employee a loan. 
D) A creditor who offers a housing loan.

Question 8

The main purpose of a business's credit policy is to:

Accepted Answer

A) Enable the business to issue credits reports and litigate easily. 
B) Clarify the circumstances and terms on which credit will be advanced to customers and how debts will be managed. 
C) Clarify the circumstances and terms on which the business will borrow money and pay its existing debts. 
D) Build good relationships with customers by advancing credit to them whenever possible. 
A) Enable the business to issue credits reports and litigate easily. 
B) Clarify the circumstances and terms on which credit will be advanced to customers and how debts will be managed. 
C) Clarify the circumstances and terms on which the business will borrow money and pay its existing debts. 
D) Build good relationships with customers by advancing credit to them whenever possible.

Question 9

In which of the following circumstances is a debtor not empowered to apply to a Court for changes to be made to a credit contract?

Accepted Answer

A) When the debtor is a corporation. 
B) When the debtor cannot meet the repayments because they are experiencing hardship. 
C) When the credit contract is unjust. 
D) When the debtor was unable to pay the amount required under the consumer contract and the creditor could have ascertained this through appropriate enquiries. 
A) When the debtor is a corporation. 
B) When the debtor cannot meet the repayments because they are experiencing hardship. 
C) When the credit contract is unjust. 
D) When the debtor was unable to pay the amount required under the consumer contract and the creditor could have ascertained this through appropriate enquiries.

Question 10

A plaintiff will be entitled to default judgement in circumstances where:

Accepted Answer

A) The plaintiff is successful at the Court hearing. 
B) The defendant is successful at the Court hearing. 
C) There is no Court hearing because the debtor has failed to respond to the statement of claim. 
D) The defendant files a defence that is not accepted by the Court. 
A) The plaintiff is successful at the Court hearing. 
B) The defendant is successful at the Court hearing. 
C) There is no Court hearing because the debtor has failed to respond to the statement of claim. 
D) The defendant files a defence that is not accepted by the Court.

Question 11

Which of the following steps is not one of the usual steps associated with processing credit card transactions?

Accepted Answer

A) Authorisation. 
B) Collation. 
C) Batching. 
D) Clearing and settlement. 
A) Authorisation. 
B) Collation. 
C) Batching. 
D) Clearing and settlement.

Question 12

When the Court directs a third party, who owes money to the judgement creditor, to pay that money directly to the judgement creditor, it is called:

Accepted Answer

A) A warrant of execution. 
B) A garnishee order. 
C) A warrant cheque. 
D) An affidavit of execution. 
A) A warrant of execution. 
B) A garnishee order. 
C) A warrant cheque. 
D) An affidavit of execution.

Question 13

What is a 'bill of exchange'?

Accepted Answer

A) The old name for a cheque. 
B) An endorsed cheque. 
C) A written order by the drawer to the drawee instructing them to pay money to a third party. 
D) A cheque with the words 'not negotiable' written on it. 
A) The old name for a cheque. 
B) An endorsed cheque. 
C) A written order by the drawer to the drawee instructing them to pay money to a third party. 
D) A cheque with the words 'not negotiable' written on it.

Question 14

When a customer challenges a credit card transaction that appears on their statement, who bears the onus of proof?

Accepted Answer

A) The onus is on the merchant to prove that the transaction took place. 
B) The onus is on the customer to prove that the transaction did not take place. 
C) The onus is on the card issuer to prove that the transaction did not take place. 
D) The onus is on the bank to resolve any dispute. 
A) The onus is on the merchant to prove that the transaction took place. 
B) The onus is on the customer to prove that the transaction did not take place. 
C) The onus is on the card issuer to prove that the transaction did not take place. 
D) The onus is on the bank to resolve any dispute.

Question 15

Which of the following is not one of the consequences for a business of breaching the National Credit Code?

Accepted Answer

A) A civil suit. 
B) Civil penalties. 
C) Criminal penalties. 
D) The appointment of a receiver. 
A) A civil suit. 
B) Civil penalties. 
C) Criminal penalties. 
D) The appointment of a receiver.

Question 16

What is a 'payday lender'?

Accepted Answer

A) A lender who offers short term cash loans to people between paydays. 
B) A lender who offers loans though a major institution. 
C) A lender who is the debtor's employer. 
D) A lender who is the debtor's employee. 
A) A lender who offers short term cash loans to people between paydays. 
B) A lender who offers loans though a major institution. 
C) A lender who is the debtor's employer. 
D) A lender who is the debtor's employee.

Question 17

What is the legal effect of using a credit card?

Accepted Answer

A) A cheque is drawn on a financial institution to pay for goods and services purchase by the credit holder. 
B) The vendor selling the product advances credit to the purchaser and the debt is later paid by the card issuer. 
C) The bank undertakes payment on behalf of the card issuer and the amount becomes a debt payable to the card holder. 
D) The card issuer undertakes payment on behalf of the card holder and the amount becomes a debt payable by the card holder to the card issuer. 
A) A cheque is drawn on a financial institution to pay for goods and services purchase by the credit holder. 
B) The vendor selling the product advances credit to the purchaser and the debt is later paid by the card issuer. 
C) The bank undertakes payment on behalf of the card issuer and the amount becomes a debt payable to the card holder. 
D) The card issuer undertakes payment on behalf of the card holder and the amount becomes a debt payable by the card holder to the card issuer.

Question 18

What kind of documentation is a credit provider not obliged to provide to a debtor under the National Credit Code?

Accepted Answer

A) A copy of the credit policy of the business. 
B) A written contract. 
C) A pre-contractual statement. 
D) An information statement. 
A) A copy of the credit policy of the business. 
B) A written contract. 
C) A pre-contractual statement. 
D) An information statement.

Question 19

Which of the following is not expected from a bank customer to meet their obligation to protect their PIN or password?

Accepted Answer

A) The customer must not tell the PIN or password to another person. 
B) The customer should choose a PIN or password that is easy to recall 
C) The customer must not write the PIN on the card or keep it stored near the card. 
D) The customer must not act with extreme carelessness when recording their pin. 
E) g their birthdate. 
A) The customer must not tell the PIN or password to another person. 
B) The customer should choose a PIN or password that is easy to recall 
C) The customer must not write the PIN on the card or keep it stored near the card. 
D) The customer must not act with extreme carelessness when recording their pin. 
E) g their birthdate.

Question 20

What is 'negotiability'?

Accepted Answer

A) The name for the principle that means that 'no one gives what one does not have'. 
B) A name that describes the fact that something can be transferred and the transferee will obtain good title even if the transferee did not have good title. 
C) The name that describes the bargaining room that exists in terms of the type of payment one can make for goods or services. 
D) The quality currency has when it cannot be legally refused in payment of a debt. 
A) The name for the principle that means that 'no one gives what one does not have'. 
B) A name that describes the fact that something can be transferred and the transferee will obtain good title even if the transferee did not have good title. 
C) The name that describes the bargaining room that exists in terms of the type of payment one can make for goods or services. 
D) The quality currency has when it cannot be legally refused in payment of a debt.

Johnny Little borrows $300,000 from Bank Bigge in exchange for giving the bank a mortgage on his farmland.Bank Bigge is a:

A document that describes the way a notice or document was brought to the attention of another party to Court proceedings is called:

The form of ADR that takes place when a third party helps two or more parties to a dispute to reach their own agreement about how a legal matter can be resolved is called:

A writ of execution which allows an officer of the court to seize the debtor's assets is also known as:

What is a 'guarantee'?

A 'debtor' is:

To which of the following transactions does the National Credit Code apply?

The main purpose of a business's credit policy is to:

In which of the following circumstances is a debtor not empowered to apply to a Court for changes to be made to a credit contract?

A plaintiff will be entitled to default judgement in circumstances where:

Which of the following steps is not one of the usual steps associated with processing credit card transactions?

When the Court directs a third party, who owes money to the judgement creditor, to pay that money directly to the judgement creditor, it is called:

What is a 'bill of exchange'?

When a customer challenges a credit card transaction that appears on their statement, who bears the onus of proof?

Which of the following is not one of the consequences for a business of breaching the National Credit Code?

What is a 'payday lender'?

What is the legal effect of using a credit card?

What kind of documentation is a credit provider not obliged to provide to a debtor under the National Credit Code?

Which of the following is not expected from a bank customer to meet their obligation to protect their PIN or password?

What is 'negotiability'?

Business and the Law

Law in Australia 1: the Australian Legal System

Law in Australia 2: Politicians and Judges

Legal Skills: How to Find, Understand and Use the Law

Tort Law 1: Deliberate Harm

Tort Law 2: Careless Harm

Contract Law 1: Formation of the Contract

Contract Law 2: Terms of the Contract

Contract Law 3: Enforcement of the Contract

Contract Law 4: Working With Agents

Consumer Protection and Privacy Law: Dealing With Customers

Competition Law: Dealing With Other Businesses

Intellectual Property Law: Protecting Your Creation

Managing a Business 1: Start-Up

Managing a Business 2: Business Ownership

Managing a Business 3: Finance

Managing a Business 5: Insurance and Taxes

Managing a Business 6: Employment

Managing a Business 7: Bankruptcy and Liquidation

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Exam 17: Managing a Business 4: Making Payments and Recovering Debts

Johnny Little borrows $300,000 from Bank Bigge in exchange for giving the bank a mortgage on his farmland.Bank Bigge is a:

A document that describes the way a notice or document was brought to the attention of another party to Court proceedings is called:

The form of ADR that takes place when a third party helps two or more parties to a dispute to reach their own agreement about how a legal matter can be resolved is called:

A writ of execution which allows an officer of the court to seize the debtor's assets is also known as:

What is a 'guarantee'?

A 'debtor' is:

To which of the following transactions does the National Credit Code apply?

The main purpose of a business's credit policy is to:

In which of the following circumstances is a debtor not empowered to apply to a Court for changes to be made to a credit contract?

A plaintiff will be entitled to default judgement in circumstances where:

Which of the following steps is not one of the usual steps associated with processing credit card transactions?

When the Court directs a third party, who owes money to the judgement creditor, to pay that money directly to the judgement creditor, it is called:

What is a 'bill of exchange'?

When a customer challenges a credit card transaction that appears on their statement, who bears the onus of proof?

Which of the following is not one of the consequences for a business of breaching the National Credit Code?

What is a 'payday lender'?

What is the legal effect of using a credit card?

What kind of documentation is a credit provider not obliged to provide to a debtor under the National Credit Code?

Which of the following is not expected from a bank customer to meet their obligation to protect their PIN or password?

What is 'negotiability'?

Business and the Law

Law in Australia 1: the Australian Legal System

Law in Australia 2: Politicians and Judges

Legal Skills: How to Find, Understand and Use the Law

Tort Law 1: Deliberate Harm

Tort Law 2: Careless Harm

Contract Law 1: Formation of the Contract

Contract Law 2: Terms of the Contract

Contract Law 3: Enforcement of the Contract

Contract Law 4: Working With Agents

Consumer Protection and Privacy Law: Dealing With Customers

Competition Law: Dealing With Other Businesses

Intellectual Property Law: Protecting Your Creation

Managing a Business 1: Start-Up

Managing a Business 2: Business Ownership

Managing a Business 3: Finance

Managing a Business 5: Insurance and Taxes

Managing a Business 6: Employment

Managing a Business 7: Bankruptcy and Liquidation

Filters