Question 1

What is the effect of Sean's bankruptcy, if any, on the debt owed by Sean?

Accepted Answer

A)  Sean may assert his bankruptcy as a defense against paying the debt. 
B)  Sean cannot assert his bankruptcy as a defense because it is a suretyship agreement. 
C)  Sean cannot assert his bankruptcy as a defense because it is a guaranty agreement. 
D)  Sean may only assert the bankruptcy as a defense if he filed for bankruptcy based on excessive medical bills. 
E)  Sean may only assert the bankruptcy as a defense only if he filed for bankruptcy protection within one year of agreeing to liability on Allison's loan. 
A)  Sean may assert his bankruptcy as a defense against paying the debt. 
B)  Sean cannot assert his bankruptcy as a defense because it is a suretyship agreement. 
C)  Sean cannot assert his bankruptcy as a defense because it is a guaranty agreement. 
D)  Sean may only assert the bankruptcy as a defense if he filed for bankruptcy based on excessive medical bills. 
E)  Sean may only assert the bankruptcy as a defense only if he filed for bankruptcy protection within one year of agreeing to liability on Allison's loan.

Question 2

If you take your expensive watch to a jeweler for repairs and after costly repairs are made you discover you cannot pay, what options are available to the jeweler?

Accepted Answer

A)  To return the watch to you and seek an artisan's lien 
B)  To return the watch to you and seek a mechanic's lien 
C)  To keep and eventually sell the watch unless debts are repaid 
D)  To return the watch and sue as a secured creditor 
E)  To keep the watch until debt is paid, but never to sell the watch. 
A)  To return the watch to you and seek an artisan's lien 
B)  To return the watch to you and seek a mechanic's lien 
C)  To keep and eventually sell the watch unless debts are repaid 
D)  To return the watch and sue as a secured creditor 
E)  To keep the watch until debt is paid, but never to sell the watch.

Question 3

Which of the following was the result in Flynn Builders, L.C. v. Lande, the case in the text in which the plaintiff filed a mechanics lien in connection with a dispute involving payment for unpaid bills related to the construction of the new home?

Accepted Answer

A)  The Iowa Supreme Court upheld the decision of the lower courts that Flynn had substantially completed the work and was entitled to a judgement against the Landes. 
B)  That Flynn had not completed any of the work on the home and was not entitled to the judgement. 
C)  The Iowa Supreme Court upheld the decision of the lower courts that Flynn had not substantially completed the work on the home and was not entitled to a judgement against the Landes. 
D)  The Iowa Supreme Court reversed the decision of the lower courts that Flynn had substantially completed the work on the home and was not entitled to a judgement against the Landes. 
E)  The Iowa Supreme Court reversed the decision of the lower courts that Flynn had not substantially completed the work on the home and was entitled to a judgement against the Landes. 
A)  The Iowa Supreme Court upheld the decision of the lower courts that Flynn had substantially completed the work and was entitled to a judgement against the Landes. 
B)  That Flynn had not completed any of the work on the home and was not entitled to the judgement. 
C)  The Iowa Supreme Court upheld the decision of the lower courts that Flynn had not substantially completed the work on the home and was not entitled to a judgement against the Landes. 
D)  The Iowa Supreme Court reversed the decision of the lower courts that Flynn had substantially completed the work on the home and was not entitled to a judgement against the Landes. 
E)  The Iowa Supreme Court reversed the decision of the lower courts that Flynn had not substantially completed the work on the home and was entitled to a judgement against the Landes.

Question 4

A(n) ________ lien is a claim to property in which the lienholder has the right to be in possession of the property until the debt is paid.

Accepted Answer

A)  attorney's 
B)  common law 
C)  consumer 
D)  Possessory 
E)  agent's 
A)  attorney's 
B)  common law 
C)  consumer 
D)  Possessory 
E)  agent's

Question 5

Which of the following defenses might a guarantor raise if the guarantor's oral promise to pay a debt is not in writing?

Accepted Answer

A)  Statute of Frauds defense 
B)  Common Fraud defense 
C)  Parol evidence defense 
D)  Unwritten promise defense 
E)  Negligence 
A)  Statute of Frauds defense 
B)  Common Fraud defense 
C)  Parol evidence defense 
D)  Unwritten promise defense 
E)  Negligence

Question 6

If Paul proceeds with attempting to obtain and enforce a lien, what is the most likely result?

Accepted Answer

A)  Paul will lose because he performed deficient work. 
B)  Paul will lose unless he already paid Good Windows for the windows, in which case he would win. 
C)  Paul will win unless Cecelia has a writing signed by him in which he agrees that he will not seek a lien in the case of deficient work. 
D)  Paul will win if he proves that he had never had a problem installing windows before. 
E)  Paul will receive only half of his bill because he performed deficient work. 
A)  Paul will lose because he performed deficient work. 
B)  Paul will lose unless he already paid Good Windows for the windows, in which case he would win. 
C)  Paul will win unless Cecelia has a writing signed by him in which he agrees that he will not seek a lien in the case of deficient work. 
D)  Paul will win if he proves that he had never had a problem installing windows before. 
E)  Paul will receive only half of his bill because he performed deficient work.

Question 7

If an artisan's lien is claimed on property, what type(s) of property can it be placed on?

Accepted Answer

A)  Real property only 
B)  Personal property only 
C)  Moveable property only 
D)  Personal and real property 
E)  Moveable and real property 
A)  Real property only 
B)  Personal property only 
C)  Moveable property only 
D)  Personal and real property 
E)  Moveable and real property

Question 8

JuTara owns a small carwash business. Due to severe dry weather, the price of water increased, and she had to increase her prices, and many customers stopped coming. JuTara had several creditors. She told them that she does not want to sell her property and that she would like to stay in business, but that she is considering bankruptcy unless her debts can be reduced. By what type of voluntary agreement would creditors receive only a percentage of the amount owed to them? What are the principles involving such an agreement, and why would a creditor consider such an agreement?

Accepted Answer

JuTara's creditors might consider a comp

Question 9

A(n) ________ is lien that is placed on personal property.

Accepted Answer

A)  mechanic's lien 
B)  artisan's lien 
C)  priority lien 
D)  actuary lien 
E)  personal property lien 
A)  mechanic's lien 
B)  artisan's lien 
C)  priority lien 
D)  actuary lien 
E)  personal property lien

Question 10

At any time before the sale of real property subject to a mortgage, the debtor may recover the property by paying the debt along with additional costs and interest.

Accepted Answer

A) True 
 B)False

Question 11

Explain what is meant by "attachment" and who may seek this remedy and why?

Accepted Answer

Attachment is a court order permitting a

Question 12

Some property is exempt from being seized by a creditor to satisfy the debt. The amount of this homestead exemption is:

Accepted Answer

A)  it varies from state to state 
B)  $50,000 
C)  $25,000 
D)  $100,000 
E)  the value of the actual residence 
A)  it varies from state to state 
B)  $50,000 
C)  $25,000 
D)  $100,000 
E)  the value of the actual residence

Question 13

What happens if a debtor is successful in a legal action initiated by a creditor after a creditor attached property?

Accepted Answer

A)  The creditor will be permitted to sell the debtor's property to satisfy the debt. 
B)  The debtor can recover actual damages only, even if the property was wrongfully attached. 
C)  The debtor can recover punitive damages only. 
D)  The debtor's property is returned, but no damages may be obtained by either party. 
E)  The debtor can recover damages from the creditor for losses suffered while deprived of property and, if the property was wrongfully attached, may recover punitive damages. 
A)  The creditor will be permitted to sell the debtor's property to satisfy the debt. 
B)  The debtor can recover actual damages only, even if the property was wrongfully attached. 
C)  The debtor can recover punitive damages only. 
D)  The debtor's property is returned, but no damages may be obtained by either party. 
E)  The debtor can recover damages from the creditor for losses suffered while deprived of property and, if the property was wrongfully attached, may recover punitive damages.

Question 14

Discuss why a creditor would want to attach property as well as whether attachment is more often sought by secured or unsecured creditors and why.

Accepted Answer

An attachment can help ensure that a deb

Question 15

[Defective Windows] Cecelia hired a contractor, Paul, to put new windows in her home that she purchased herself from Good Windows. Unfortunately, Paul made a mess of the windows. While the windows were initially in good shape, Paul cracked some, scratched others, and did not get the windows properly fitted into their frames. Cecelia received a bill for the windows from Good Windows, but she refused to pay. Cecelia was told that Good Windows would file a lien, but she believed that there was no basis upon which a lien would be granted. Paul, who refused responsibility for any problems, also filed a lien after Cecelia refused to pay him.
-What type of lien would Paul likely seek?

Accepted Answer

A)  Artisan's 
B)  Mechanic's 
C)  Removal 
D)  Construction 
E)  Judicial 
A)  Artisan's 
B)  Mechanic's 
C)  Removal 
D)  Construction 
E)  Judicial

Question 16

Which of the following may occur when a third party agrees to be liable for a debtor's loan either primarily or secondarily?

Accepted Answer

A)  A suretyship, a guaranty, or a certified agreement 
B)  A certified agreement or a suretyship, but not a guarantee 
C)  A certified agreement or a guaranty, but not a suretyship 
D)  A guarantee but not a certified agreement or a suretyship 
E)  Either a suretyship or a guaranty, but not a certified agreement 
A)  A suretyship, a guaranty, or a certified agreement 
B)  A certified agreement or a suretyship, but not a guarantee 
C)  A certified agreement or a guaranty, but not a suretyship 
D)  A guarantee but not a certified agreement or a suretyship 
E)  Either a suretyship or a guaranty, but not a certified agreement

Question 17

An attachment is a court order that allows a court officer to seize a debtor's property before entry of a final judgment in a case.

Accepted Answer

A) True 
 B)False

Question 18

A ________ is a person who holds a lien.

Accepted Answer

A)  debtor 
B)  consenting agent 
C)  lienholder 
D)  creditor 
E)  bondsman 
A)  debtor 
B)  consenting agent 
C)  lienholder 
D)  creditor 
E)  bondsman

Question 19

[Bad Hair Day] Tara started a new hair salon and leased space for the salon from Marisa. Unfortunately, Tara's styling caused some problems for customers. One customer's hair turned green from Tara's bleaching process, and Tara burned another customer with a curling iron. Not surprisingly, Tara had little business and was unable to pay her lease payments as they came due. Marisa filed a lawsuit against Tara and obtained a judgment against Tara for $7,000 in past due rent. Marisa asked for a court-ordered judgment permitting the sheriff to seize and sell Tara's equipment, including her hair-dryers, pedicure chair, nail polish, and other items. The judge refused her request. Marisa did, however, obtain an order allowing her to seize $3,000 held in Tara's bank account to partially satisfy the debt. Marisa also discovered that Tara had, for her personal use, a wide-screen television set worth approximately $1,000 which was being held by Franklin, a television repairer, for the costs of repair. Marisa asked him to turn over the television because her lien had priority, but Franklin refused.
-What is the term for what Marisa requested when she requested that the judge have law enforcement officers seize and sell Tara's equipment?

Accepted Answer

A)  Order of compliance 
B)  Order of law 
C)  Writ of execution 
D)  Writ of garnishment 
E)  Writ of debt satisfaction 
A)  Order of compliance 
B)  Order of law 
C)  Writ of execution 
D)  Writ of garnishment 
E)  Writ of debt satisfaction

Question 20

A(n) ________ is an order that permits the creditor to recover property beyond foreclosed property.

Accepted Answer

A)  property judgment 
B)  option order 
C)  deficiency judgment 
D)  mortgagee lien 
E)  foreclosure lien 
A)  property judgment 
B)  option order 
C)  deficiency judgment 
D)  mortgagee lien 
E)  foreclosure lien

Exam 31: Other Creditors Remedies and Suretyship

What is the effect of Sean's bankruptcy, if any, on the debt owed by Sean?

If you take your expensive watch to a jeweler for repairs and after costly repairs are made you discover you cannot pay, what options are available to the jeweler?

Which of the following was the result in Flynn Builders, L.C. v. Lande, the case in the text in which the plaintiff filed a mechanics lien in connection with a dispute involving payment for unpaid bills related to the construction of the new home?

A(n) ________ lien is a claim to property in which the lienholder has the right to be in possession of the property until the debt is paid.

Which of the following defenses might a guarantor raise if the guarantor's oral promise to pay a debt is not in writing?

If Paul proceeds with attempting to obtain and enforce a lien, what is the most likely result?

If an artisan's lien is claimed on property, what type(s) of property can it be placed on?

A(n) ________ is lien that is placed on personal property.

At any time before the sale of real property subject to a mortgage, the debtor may recover the property by paying the debt along with additional costs and interest.

Explain what is meant by "attachment" and who may seek this remedy and why?

Some property is exempt from being seized by a creditor to satisfy the debt. The amount of this homestead exemption is:

What happens if a debtor is successful in a legal action initiated by a creditor after a creditor attached property?

Discuss why a creditor would want to attach property as well as whether attachment is more often sought by secured or unsecured creditors and why.

Which of the following may occur when a third party agrees to be liable for a debtor's loan either primarily or secondarily?

An attachment is a court order that allows a court officer to seize a debtor's property before entry of a final judgment in a case.

A ________ is a person who holds a lien.

A(n) ________ is an order that permits the creditor to recover property beyond foreclosed property.

An Introduction to Dynamic Business Law

Business Ethics

The Us Legal System

Alternative Dispute Resolution

Constitutional Principles

International and Comparative Law

Crime and the Business Community

Tort Law

Negligence and Strict Liability

Product Liability

Liability of Accountants and Other Professionals

Intellectual Property

Introduction to Contracts

Agreement

Consideration

Capacity and Legality

Legal Assent

Contracts in Writing

Third-Party Rights to Contracts

Discharge and Remedies

Introduction to Sales and Lease Contracts

Title, Risk of Loss, and Insurable Interest

Performance and Obligations Under Sales and Leases

Remedies for Breach of Sales and Lease Contracts

Warranties

Negotiable Instruments: Negotiability and Transferability

Negotiation, Holder in Due Course, and Defenses

Liability, Defenses, and Discharge

Checks and Electronic Fund Transfers

Secured Transactions

Bankruptcy and Reorganization

Agency Formation and Duties

Liability to Third Parties and Termination

Forms of Business Organization

Partnerships: Nature, Formation, and Operation

Partnerships: Termination and Limited Partnerships

Corporations: Formation and Financing

Corporations: Directors, Officers, and Shareholders

Corporations: Mergers, Consolidations, Terminations

Corporations: Securities and Investor Protection

Employment and Labor Law

Employment Discrimination

Administrative Law

Consumer Law

Environmental Law

Antitrust Law

The Nature of Property, Personal Property, and Bailments

Real Property

Landlord-Tenant Law

Insurance Law

Wills and Trusts

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