Question 1

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. A

Question 2

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. C

Question 3

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. A

Question 4

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 5

Which of the following terms is not a name given to of one of the parties to a bill of exchange?

Accepted Answer

A) Drawer 
B) Drafter 
C) Drawee 
D) Payee 
A) Drawer 
B) Drafter 
C) Drawee 
D) Payee

Question 6

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 7

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 8

Which of the following matters need not be included in a letter of demand?

Accepted Answer

A) Details of the outcome that will follow from judgement in favour of the creditor. 
B) Details of the outstanding debt. 
C) A fixed date by which payment must be made. 
D) A statement demanding payment. 
A) Details of the outcome that will follow from judgement in favour of the creditor. 
B) Details of the outstanding debt. 
C) A fixed date by which payment must be made. 
D) A statement demanding payment.

Question 9

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 10

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 11

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 12

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 (e.g.their birthdate). 
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. 
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 (e.g.their birthdate). 
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.

Question 13

Which of the following obligations is not one that a credit provider must generally comply with if it wishes to enforce a credit contract?

Accepted Answer

A) To serve a default notice on the debtor. 
B) To obtain a court order before repossessing mortgaged goods. 
C) To serve appropriate notices after taking possession of goods or selling them. 
D) To offer to vary the interest rate and charges to make them more manageable for the debtor. 
A) To serve a default notice on the debtor. 
B) To obtain a court order before repossessing mortgaged goods. 
C) To serve appropriate notices after taking possession of goods or selling them. 
D) To offer to vary the interest rate and charges to make them more manageable for the debtor.

Question 14

Which of the following transactions need not be reported to AUSTRAC by a cash dealer?

Accepted Answer

A) A $15 000 cash deposit by a customer. 
B) A request by a customer to transfer $2000 from their account to an account in Hong Kong. 
C) A $5000 cash deposit by a customer followed immediately by a second deposit in the amount of $6000. 
D) A payment in cash of $8000 by a customer. 
A) A $15 000 cash deposit by a customer. 
B) A request by a customer to transfer $2000 from their account to an account in Hong Kong. 
C) A $5000 cash deposit by a customer followed immediately by a second deposit in the amount of $6000. 
D) A payment in cash of $8000 by a customer.

Question 15

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 16

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 17

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.

Question 18

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 19

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 20

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.

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

An 'examination summons' is:

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

What is a 'bill of exchange'?

Which of the following terms is not a name given to of one of the parties to a bill of exchange?

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

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

Which of the following matters need not be included in a letter of demand?

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:

A 'debtor' is:

What is a 'guarantee'?

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

Which of the following obligations is not one that a credit provider must generally comply with if it wishes to enforce a credit contract?

Which of the following transactions need not be reported to AUSTRAC by a cash dealer?

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

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

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

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

Which of the following statements about debit cards is true?

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

Business and the Law

The Australian Legal System

Politicians and Judges

How to Find, Understand and Use the Law

Deliberately Causing Harm

Carelessly Causing Harm

Contract Law: Formation of the Contract

Contract Law: Terms of the Contract

Contract Law: Enforcement of the Contract

Contract Law: Working With Agents

Dealing With Consumers

Dealing With Competitors

Protecting Ip

Managing a Business: Start-Up

Managing a Business: Business Ownership

Managing a Business: Companies and Corporate Governance

Managing a Business: Insurance and Taxes

Managing a Business: Employing Workers

Managing a Business: Closing Down

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

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

An 'examination summons' is:

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

What is a 'bill of exchange'?

Which of the following terms is not a name given to of one of the parties to a bill of exchange?

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

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

Which of the following matters need not be included in a letter of demand?

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:

A 'debtor' is:

What is a 'guarantee'?

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

Which of the following obligations is not one that a credit provider must generally comply with if it wishes to enforce a credit contract?

Which of the following transactions need not be reported to AUSTRAC by a cash dealer?

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

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

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

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

Which of the following statements about debit cards is true?

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

Business and the Law

The Australian Legal System

Politicians and Judges

How to Find, Understand and Use the Law

Deliberately Causing Harm

Carelessly Causing Harm

Contract Law: Formation of the Contract

Contract Law: Terms of the Contract

Contract Law: Enforcement of the Contract

Contract Law: Working With Agents

Dealing With Consumers

Dealing With Competitors

Protecting Ip

Managing a Business: Start-Up

Managing a Business: Business Ownership

Managing a Business: Companies and Corporate Governance

Managing a Business: Insurance and Taxes

Managing a Business: Employing Workers

Managing a Business: Closing Down

Filters