Question 1

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 2

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 3

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 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

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 6

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 7

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 8

Which of the following events will not have the effect of automatically discharging a guarantee?

Accepted Answer

A) Full payment of the debt. 
B) Modification of the loan contract by the creditor without the consent of the guarantor. 
C) Destruction of the security for the loan by the creditor. 
D) Alteration of the loan contract by the debtor without the consent of the creditor. 
A) Full payment of the debt. 
B) Modification of the loan contract by the creditor without the consent of the guarantor. 
C) Destruction of the security for the loan by the creditor. 
D) Alteration of the loan contract by the debtor without the consent of the creditor.

Question 9

To which of the following transactions does the EFT code not apply?

Accepted Answer

A) Cheque transactions 
B) Internet and telephone banking transactions 
C) Transactions involving the purchase of products using electronic transfer at the time of sale (EFTPOS) 
D) Withdrawals or deposits from an automatic teller machine (ATM) 
A) Cheque transactions 
B) Internet and telephone banking transactions 
C) Transactions involving the purchase of products using electronic transfer at the time of sale (EFTPOS) 
D) Withdrawals or deposits from an automatic teller machine (ATM)

Question 10

The National Credit Code seeks to protect debtors by creating uniform requirements regarding:

Accepted Answer

A) consumer rights and bankruptcy. 
B) the recovery of debts in the courts. 
C) the ADR processes applicable to debt recovery matters. 
D) credit arrangements and recovery of outstanding debts. 
A) consumer rights and bankruptcy. 
B) the recovery of debts in the courts. 
C) the ADR processes applicable to debt recovery matters. 
D) credit arrangements and recovery of outstanding debts.

Question 11

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.

Question 12

The definition of a cheque under the Cheques Act 1986 (Cth) stipulates that a cheque is really a certain kind of order.The definition does not include a requirement that such an order:

Accepted Answer

A) is conditional. 
B) is addressed by a person to a financial institution. 
C) is signed. 
D) that requires the financial institution to pay a sum on demand. 
A) is conditional. 
B) is addressed by a person to a financial institution. 
C) is signed. 
D) that requires the financial institution to pay a sum on demand.

Question 13

A cheque made payable to a particular person is called:

Accepted Answer

A) a bearer cheque. 
B) an order cheque. 
C) an endorsed cheque. 
D) a crossed cheque. 
A) a bearer cheque. 
B) an order cheque. 
C) an endorsed cheque. 
D) a crossed cheque.

Question 14

In relation to a mortgage of old system of land, the mortgagor's interest in the land is protected by:

Accepted Answer

A) the fact that they are the legal owner. 
B) a signed release document. 
C) a covenant in the deed of conveyance. 
D) a caveat on the register. 
A) the fact that they are the legal owner. 
B) a signed release document. 
C) a covenant in the deed of conveyance. 
D) a caveat on the register.

Question 15

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.

Question 16

'Responsible lending' under the National Credit Code encompasses obligations on the part of the licensed credit provider not to provide credit that is:

Accepted Answer

A) high interest and short term. 
B) unlikely to generate a good return for the lender. 
C) unsuitable for the consumer. 
D) in fact low-doc or payday lending. 
A) high interest and short term. 
B) unlikely to generate a good return for the lender. 
C) unsuitable for the consumer. 
D) in fact low-doc or payday lending.

Question 17

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 18

A customer's credit report does not:

Accepted Answer

A) include personal references as to the customer's business reputation. 
B) provide details of credit applications made in the past. 
C) list credit defaults. 
D) list information that is already publicly available (e.g.bankruptcy reports). 
A) include personal references as to the customer's business reputation. 
B) provide details of credit applications made in the past. 
C) list credit defaults. 
D) list information that is already publicly available (e.g.bankruptcy reports).

Question 19

What is the difference between a bill of exchange and a cheque?

Accepted Answer

A) A cheque is a bill of exchange in which the drawee is a financial institution. 
B) A bill of exchange is a form of cheque in which the drawee is a financial institution. 
C) A bill of exchange is negotiable whereas a cheque is not. 
D) A cheque is negotiable whereas a bill of exchange is not. 
A) A cheque is a bill of exchange in which the drawee is a financial institution. 
B) A bill of exchange is a form of cheque in which the drawee is a financial institution. 
C) A bill of exchange is negotiable whereas a cheque is not. 
D) A cheque is negotiable whereas a bill of exchange is not.

Question 20

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.

A business's credit policy will not generally address:

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

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

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

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 a condition that must be satisfied before a mortgagee can exercise their power of sale?

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

Which of the following events will not have the effect of automatically discharging a guarantee?

To which of the following transactions does the EFT code not apply?

The National Credit Code seeks to protect debtors by creating uniform requirements regarding:

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:

The definition of a cheque under the Cheques Act 1986 (Cth) stipulates that a cheque is really a certain kind of order.The definition does not include a requirement that such an order:

A cheque made payable to a particular person is called:

In relation to a mortgage of old system of land, the mortgagor's interest in the land is protected by:

What is 'negotiability'?

'Responsible lending' under the National Credit Code encompasses obligations on the part of the licensed credit provider not to provide credit that is:

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

A customer's credit report does not:

What is the difference between a bill of exchange and a cheque?

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

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

A business's credit policy will not generally address:

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

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

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

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 a condition that must be satisfied before a mortgagee can exercise their power of sale?

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

Which of the following events will not have the effect of automatically discharging a guarantee?

To which of the following transactions does the EFT code not apply?

The National Credit Code seeks to protect debtors by creating uniform requirements regarding:

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:

The definition of a cheque under the Cheques Act 1986 (Cth) stipulates that a cheque is really a certain kind of order.The definition does not include a requirement that such an order:

A cheque made payable to a particular person is called:

In relation to a mortgage of old system of land, the mortgagor's interest in the land is protected by:

What is 'negotiability'?

'Responsible lending' under the National Credit Code encompasses obligations on the part of the licensed credit provider not to provide credit that is:

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

A customer's credit report does not:

What is the difference between a bill of exchange and a cheque?

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

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