Question 1

Legal tender is best defined as:

Accepted Answer

A) Cash payment. 
B) Currency that cannot be legally refused in payment of a debt. 
C) Cash, cheques, credit cards or electronic funds transfer payments. 
D) Currency. 
A) Cash payment. 
B) Currency that cannot be legally refused in payment of a debt. 
C) Cash, cheques, credit cards or electronic funds transfer payments. 
D) Currency.

Question 2

Which of the following statements is true of a mortgage of old system land?

Accepted Answer

A) The mortgagee is the legal owner of the real property. 
B) The mortgagee is the equitable owner of the real property. 
C) The mortgagee is both the legal owner and the equitable owner of the real property. 
D) The mortgagee is neither the legal owner nor the equitable owner of the real property. 
A) The mortgagee is the legal owner of the real property. 
B) The mortgagee is the equitable owner of the real property. 
C) The mortgagee is both the legal owner and the equitable owner of the real property. 
D) The mortgagee is neither the legal owner nor the equitable owner of the real property.

Question 3

An 'examination summons' is:

Accepted Answer

A) A statement of claim. 
B) An order directing a sheriff to search or examine a debtor's premises or documents. 
C) A process by which a Court examines a debtor's financial position to ascertain their ability to pay a debt. 
D) An order directing a third party who owes money to the judgement debtor the pay it directly to the judgement creditor. 
A) A statement of claim. 
B) An order directing a sheriff to search or examine a debtor's premises or documents. 
C) A process by which a Court examines a debtor's financial position to ascertain their ability to pay a debt. 
D) An order directing a third party who owes money to the judgement debtor the pay it directly to the judgement creditor.

Question 4

What is the effect of 'crossing' a cheque with two parallel lines?

Accepted Answer

A) The cheque is revoked. 
B) The cheque becomes non-transferable. 
C) The cheque must be paid into a bank account. 
D) The cheque becomes not negotiable. 
A) The cheque is revoked. 
B) The cheque becomes non-transferable. 
C) The cheque must be paid into a bank account. 
D) The cheque becomes not negotiable.

Question 5

Which of the following is not true of a bank cheque?

Accepted Answer

A) It is a cheque drawn by a financial institution on itself. 
B) It must be handwritten rather than typed. 
C) It is seen to be more reliable than a personal cheque. 
D) It is often used when a transaction involves a large sum of money. 
A) It is a cheque drawn by a financial institution on itself. 
B) It must be handwritten rather than typed. 
C) It is seen to be more reliable than a personal cheque. 
D) It is often used when a transaction involves a large sum of money.

Question 6

Legal proceedings against a debtor will generally be most appropriate when:

Accepted Answer

A) The relationship between debtor and creditor has to be preserved. 
B) It is cost effective for the debt to be written off. 
C) ADR is unsuccessful or inappropriate and the debt is substantial. 
D) The debtor must be punished. 
A) The relationship between debtor and creditor has to be preserved. 
B) It is cost effective for the debt to be written off. 
C) ADR is unsuccessful or inappropriate and the debt is substantial. 
D) The debtor must be punished.

Question 7

Which of the following is not a condition that must be satisfied before a mortgagee can exercise their power of sale?

Accepted Answer

A) A default must be made by the mortgagor. 
B) A notice of exercise of power of sale must be served upon the mortgagor. 
C) 30 days must pass after service of the notice without payment or rectification. 
D) The mortgagor must agree to the sale price. 
A) A default must be made by the mortgagor. 
B) A notice of exercise of power of sale must be served upon the mortgagor. 
C) 30 days must pass after service of the notice without payment or rectification. 
D) The mortgagor must agree to the sale price.

Question 8

The National Credit Code imposes on all holders of an Australian credit license an obligation to engage in:

Accepted Answer

A) Charitable lending. 
B) Responsible lending. 
C) Payday lending. 
D) Conservative lending. 
A) Charitable lending. 
B) Responsible lending. 
C) Payday lending. 
D) Conservative lending.

Question 9

Which of the following terms is not implied into a mortgage at common law?

Accepted Answer

A) The mortgagee will release the mortgage upon payment of all money due under the mortgage. 
B) On default by the mortgagor, the mortgagee can demand payment of the principal and interest in full. 
C) All money spent by the mortgagee in maintaining the mortgaged property represents additional charges for which the mortgagor must pay interest. 
D) The mortgagee must insure against loss or damage by fire all buildings and improvements on the property 
A) The mortgagee will release the mortgage upon payment of all money due under the mortgage. 
B) On default by the mortgagor, the mortgagee can demand payment of the principal and interest in full. 
C) All money spent by the mortgagee in maintaining the mortgaged property represents additional charges for which the mortgagor must pay interest. 
D) The mortgagee must insure against loss or damage by fire all buildings and improvements on the property

Question 10

A business's credit policy will not generally address:

Accepted Answer

A) The circumstances and terms on which the business will distribute funds to its creditors. 
B) The circumstances in which a client will be given credit. 
C) The repayment methods and terms the business will accept. 
D) The process for recovering debt and the circumstances in which it will be activated. 
A) The circumstances and terms on which the business will distribute funds to its creditors. 
B) The circumstances in which a client will be given credit. 
C) The repayment methods and terms the business will accept. 
D) The process for recovering debt and the circumstances in which it will be activated.

Question 11

Which of the following is not an obligation that is imposed by the National Credit Code on credit providers when advertising?

Accepted Answer

A) Not to engage in misleading and deceptive advertising. 
B) To include a comparison rate in certain advertisements to help debtors work out the true cost of a loan. 
C) To include the annual percentage rate of the loan and statements of applicable fees and charges. 
D) Not to engage in unconscionable conduct or gross negligence. 
A) Not to engage in misleading and deceptive advertising. 
B) To include a comparison rate in certain advertisements to help debtors work out the true cost of a loan. 
C) To include the annual percentage rate of the loan and statements of applicable fees and charges. 
D) Not to engage in unconscionable conduct or gross negligence.

Question 12

Which of the following statements about debit cards is true?

Accepted Answer

A) A debit card uses the funds of the card holder to pay for the transaction. 
B) A debit card is similar to a credit card except that it has a lower credit limit. 
C) A debit card cannot be used for online transactions. 
D) A debit card is another name for a credit card. 
A) A debit card uses the funds of the card holder to pay for the transaction. 
B) A debit card is similar to a credit card except that it has a lower credit limit. 
C) A debit card cannot be used for online transactions. 
D) A debit card is another name for a credit card.

Question 13

The form of ADR that occurs when two or more parties put their dispute in the hands of an independent and expert third party in order for that party to resolve the matter is called:

Accepted Answer

A) Delegation. 
B) Abdication. 
C) Mediation. 
D) Arbitration. 
A) Delegation. 
B) Abdication. 
C) Mediation. 
D) Arbitration.

Question 14

A mortgage is a security for a loan given over the borrower's:

Accepted Answer

A) Real property. 
B) Personal property. 
C) Debt capital 
D) Equity capital. 
A) Real property. 
B) Personal property. 
C) Debt capital 
D) Equity capital.

Question 15

Jake takes a loan and provides his vintage Ford Cortina as security.This arrangement is known as a:

Accepted Answer

A) Personal property security. 
B) Fixed charge. 
C) Bill of lading. 
D) Real property mortgage. 
A) Personal property security. 
B) Fixed charge. 
C) Bill of lading. 
D) Real property mortgage.

Question 16

What happens if a guarantor is called upon to satisfy the debtor's obligations?

Accepted Answer

A) The contract of guarantee is modified so that the guarantor is named as the debtor. 
B) The guarantor can recover his funds from the creditor. 
C) The rights of the creditor against the debtor are exercisable by the guarantor against the debtor. 
D) The guarantee is automatically discharged. 
A) The contract of guarantee is modified so that the guarantor is named as the debtor. 
B) The guarantor can recover his funds from the creditor. 
C) The rights of the creditor against the debtor are exercisable by the guarantor against the debtor. 
D) The guarantee is automatically discharged.

Question 17

'GST' is a federal tax of:

Accepted Answer

A) 10%. 
B) 7.5%. 
C) 5%. 
D) 3.5%. 
A) 10%. 
B) 7.5%. 
C) 5%. 
D) 3.5%.

Question 18

Which of the following is not one of the usual responses of a debtor to the initiation of legal proceedings by a creditor?

Accepted Answer

A) Denying liability and lodging a defence. 
B) Admitting liability and lodging a statement of claim. 
C) Failing to respond. 
D) Lodging a counter-claim. 
A) Denying liability and lodging a defence. 
B) Admitting liability and lodging a statement of claim. 
C) Failing to respond. 
D) Lodging a counter-claim.

Question 19

Under a mortgage of old system land, when is the mortgagee entitled to take possession of the mortgaged property?

Accepted Answer

A) At any time because the mortgagee is the legal owner of the property. 
B) Only when the mortgagor defaults on payment by 2 months. 
C) Only when the mortgagor is in breach of a condition of the mortgage. 
D) Only after obtaining a court judgement granting them possession. 
A) At any time because the mortgagee is the legal owner of the property. 
B) Only when the mortgagor defaults on payment by 2 months. 
C) Only when the mortgagor is in breach of a condition of the mortgage. 
D) Only after obtaining a court judgement granting them possession.

Question 20

The 'right of redemption' in relation to a mortgage of Torrens system land refers to:

Accepted Answer

A) The mortgagee's right to insist upon the execution of a registrable release of the mortgage by the mortgagor upon payment of the loan. 
B) The mortgagor's right to insist upon the execution of a registrable release of the mortgage by the mortgagee upon payment of the loan. 
C) The mortgagor's right to redeem the land in the event of a late payment. 
D) The mortgagee's right to redeem the land if all payments were made as contracted. 
A) The mortgagee's right to insist upon the execution of a registrable release of the mortgage by the mortgagor upon payment of the loan. 
B) The mortgagor's right to insist upon the execution of a registrable release of the mortgage by the mortgagee upon payment of the loan. 
C) The mortgagor's right to redeem the land in the event of a late payment. 
D) The mortgagee's right to redeem the land if all payments were made as contracted.

Legal tender is best defined as:

Which of the following statements is true of a mortgage of old system land?

An 'examination summons' is:

What is the effect of 'crossing' a cheque with two parallel lines?

Which of the following is not true of a bank cheque?

Legal proceedings against a debtor will generally be most appropriate when:

Which of the following is not a condition that must be satisfied before a mortgagee can exercise their power of sale?

The National Credit Code imposes on all holders of an Australian credit license an obligation to engage in:

Which of the following terms is not implied into a mortgage at common law?

A business's credit policy will not generally address:

Which of the following is not an obligation that is imposed by the National Credit Code on credit providers when advertising?

Which of the following statements about debit cards is true?

The form of ADR that occurs when two or more parties put their dispute in the hands of an independent and expert third party in order for that party to resolve the matter is called:

A mortgage is a security for a loan given over the borrower's:

Jake takes a loan and provides his vintage Ford Cortina as security.This arrangement is known as a:

What happens if a guarantor is called upon to satisfy the debtor's obligations?

'GST' is a federal tax of:

Which of the following is not one of the usual responses of a debtor to the initiation of legal proceedings by a creditor?

Under a mortgage of old system land, when is the mortgagee entitled to take possession of the mortgaged property?

The 'right of redemption' in relation to a mortgage of Torrens system land refers to:

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

Legal tender is best defined as:

Which of the following statements is true of a mortgage of old system land?

An 'examination summons' is:

What is the effect of 'crossing' a cheque with two parallel lines?

Which of the following is not true of a bank cheque?

Legal proceedings against a debtor will generally be most appropriate when:

Which of the following is not a condition that must be satisfied before a mortgagee can exercise their power of sale?

The National Credit Code imposes on all holders of an Australian credit license an obligation to engage in:

Which of the following terms is not implied into a mortgage at common law?

A business's credit policy will not generally address:

Which of the following is not an obligation that is imposed by the National Credit Code on credit providers when advertising?

Which of the following statements about debit cards is true?

The form of ADR that occurs when two or more parties put their dispute in the hands of an independent and expert third party in order for that party to resolve the matter is called:

A mortgage is a security for a loan given over the borrower's:

Jake takes a loan and provides his vintage Ford Cortina as security.This arrangement is known as a:

What happens if a guarantor is called upon to satisfy the debtor's obligations?

'GST' is a federal tax of:

Which of the following is not one of the usual responses of a debtor to the initiation of legal proceedings by a creditor?

Under a mortgage of old system land, when is the mortgagee entitled to take possession of the mortgaged property?

The 'right of redemption' in relation to a mortgage of Torrens system land refers to:

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