Question 1

In a secured transaction pursuant to the Personal Property Security Act, etc., what is the purpose of a registration?

Accepted Answer

The purpose of registration is to notify

Question 2

With regard to guarantees and indemnities, which of the following is False?

Accepted Answer

A)  A guarantor can use any defence against the creditor that the debtor could use. 
B)  A legally binding promise to be primarily responsible for someone else's obligation is an indemnity. 
C)  A guarantee cannot be enforced in court unless it satisfies the writing requirements set out in statute. 
D)  Subrogation can result in a guarantor's being able to sue successfully the very debtor whose obligation he guaranteed. 
E)  A legally enforceable guarantee must satisfy all the elements required to create a binding contract except consideration. 
A)  A guarantor can use any defence against the creditor that the debtor could use. 
B)  A legally binding promise to be primarily responsible for someone else's obligation is an indemnity. 
C)  A guarantee cannot be enforced in court unless it satisfies the writing requirements set out in statute. 
D)  Subrogation can result in a guarantor's being able to sue successfully the very debtor whose obligation he guaranteed. 
E)  A legally enforceable guarantee must satisfy all the elements required to create a binding contract except consideration.

Question 3

Elizabeth gave a guarantee to the Bank in support of a loan to Tomasz. Over the next few years, the Bank and Tomasz made a number of alterations to the loan agreement. The effect of these changes was to significantly increase the amount owing to the Bank. Elizabeth had no notice or knowledge of these changes, nor did she consent to any such changes. What is the likely result?

Accepted Answer

A)  Elizabeth is bound by the changes to the loan because guarantees are, by their nature, continuing. 
B)  Guarantees are a mere formality; only Tomasz has obligations to the Bank. 
C)  The guarantees are likely to be invalid and unenforceable against Elizabeth. 
D)  A guarantee is executed under seal, therefore it will be presumed valid regardless of defect. 
E)  The failure to notify Elizabeth would release both Elizabeth and Tomasz from their obligations. 
A)  Elizabeth is bound by the changes to the loan because guarantees are, by their nature, continuing. 
B)  Guarantees are a mere formality; only Tomasz has obligations to the Bank. 
C)  The guarantees are likely to be invalid and unenforceable against Elizabeth. 
D)  A guarantee is executed under seal, therefore it will be presumed valid regardless of defect. 
E)  The failure to notify Elizabeth would release both Elizabeth and Tomasz from their obligations.

Question 4

The bulk sales acts in place in some provinces are designed to do which of the following?

Accepted Answer

A)  To set minimum statutory standards for goods sold by description in large, unpackaged quantities 
B)  To provide relief to commercial purchasers when a ship's cargo is destroyed 
C)  To enable commercial debtors to sell their products at a reduced price in order to pay back their creditors in a more timely way 
D)  To give priority to creditors who are owed money in respect of inventory sold to the debtor within the last 30 days 
E)  To prevent merchants from selling all or almost all of their business's assets before a creditor can take action to stop them 
A)  To set minimum statutory standards for goods sold by description in large, unpackaged quantities 
B)  To provide relief to commercial purchasers when a ship's cargo is destroyed 
C)  To enable commercial debtors to sell their products at a reduced price in order to pay back their creditors in a more timely way 
D)  To give priority to creditors who are owed money in respect of inventory sold to the debtor within the last 30 days 
E)  To prevent merchants from selling all or almost all of their business's assets before a creditor can take action to stop them

Question 5

When the transaction is registered, the creditor's rights include all of the following except

Accepted Answer

A)  contractual remedies upon default. 
B)  the right to seize the security. 
C)  the right to resell the security. 
D)  the right to sue the debtor rather than seize security. 
E)  the right to order the debtor arrested or detained. 
A)  contractual remedies upon default. 
B)  the right to seize the security. 
C)  the right to resell the security. 
D)  the right to sue the debtor rather than seize security. 
E)  the right to order the debtor arrested or detained.

Question 6

Some debtors can submit a reorganization proposal to avoid bankruptcy.

Accepted Answer

A) True 
 B)False

Question 7

Identify which of the following statements is true about secured transactions in provinces having a personal property security act.

Accepted Answer

A)  This kind of transaction, which formerly was legal, is now prohibited by law in all provinces. 
B)  Various kinds of secured transactions, such as conditional sales, chattel mortgages, etc., are regulated by their own distinct statutes. 
C)  An assignment of an account receivable does not qualify as a security arrangement because no tangible property is involved. 
D)  All kinds of security arrangements involving personal property as collateral now come under one statute. 
E)  Only tangible personal property can be used as security. 
A)  This kind of transaction, which formerly was legal, is now prohibited by law in all provinces. 
B)  Various kinds of secured transactions, such as conditional sales, chattel mortgages, etc., are regulated by their own distinct statutes. 
C)  An assignment of an account receivable does not qualify as a security arrangement because no tangible property is involved. 
D)  All kinds of security arrangements involving personal property as collateral now come under one statute. 
E)  Only tangible personal property can be used as security.

Question 8

Holtz hires Joe, a builder, to convert his attic into an apartment so that Holtz's mother can move in. Joe employs two carpenters, an electrician, and a plumber to do the actual work. When making payments to Joe, Holtz holds back the 10% required by statute. After waiting the legislated minimum period, Holtz discovers that several liens have been registered against his property. It turns out that Joe failed to pay the various subcontractors for their work. Which one of the following statements best describes Holtz's position?

Accepted Answer

A)  Holtz has no liability to any of those involved with the job except Joe, because he has a contract only with Joe. 
B)  Holtz and Joe are equally liable to the lien claimants because of recent amendments to the builders' lien legislation. 
C)  Holtz bears the sole liability to the lien claimants for any debts arising out of their work on his property. 
D)  Holtz's mother will be liable to both Holtz and the lien claimants, as she will be taking the benefit of the renovations. 
E)  If Holtz has complied with the statutory requirements, his obligation will be limited to the amount of the holdback, even if the amount owed under the liens far greater. 
A)  Holtz has no liability to any of those involved with the job except Joe, because he has a contract only with Joe. 
B)  Holtz and Joe are equally liable to the lien claimants because of recent amendments to the builders' lien legislation. 
C)  Holtz bears the sole liability to the lien claimants for any debts arising out of their work on his property. 
D)  Holtz's mother will be liable to both Holtz and the lien claimants, as she will be taking the benefit of the renovations. 
E)  If Holtz has complied with the statutory requirements, his obligation will be limited to the amount of the holdback, even if the amount owed under the liens far greater.

Question 9

Once the bankrupt has been discharged, explain his status.

Accepted Answer

He is free of debt and is no l

Question 10

Which of the following debts is not subject to a stay of proceedings even after a bankrupt has been discharged?

Accepted Answer

A)  Past maintenance for dependents 
B)  Family loans 
C)  Judgment debts 
D)  Ordinary debt 
E)  Unsecured loans 
A)  Past maintenance for dependents 
B)  Family loans 
C)  Judgment debts 
D)  Ordinary debt 
E)  Unsecured loans

Question 11

Distinguish between attachment and perfection under the Personal Property Security Act.

Accepted Answer

The creditor's rights under the Personal

Question 12

A Division I proposal is available only to consumer debtors with less than $75,000 in claims against them.

Accepted Answer

A) True 
 B)False

Question 13

Jones did work for Smith, who agreed to pay him in advance by cheque. Smith prepared a cheque for Jones. In which of the following situations would Smith have to honour the cheque to Green after it had been transferred to her by Jones?

Accepted Answer

A)  Where Green was Jones' girlfriend who had been given the note as a gift. Jones had not yet started the job. 
B)  Where Green knew that Jones had taken the completed cheque from Smith's desk while Smith was out to lunch. 
C)  Where Green and Jones had worked together in a scheme to cheat Smith. 
D)  Where Green operated a finance company and, while not knowing Jones but recognizing Smith's signature and knowing his good reputation, had given Jones $400 for the $500 cheque. 
E)  Where Jones had changed the $500 to read $5000 by adding a zero and rubbing out the word hundred and writing thousand over it. The alteration was clearly visible on the cheque. 
A)  Where Green was Jones' girlfriend who had been given the note as a gift. Jones had not yet started the job. 
B)  Where Green knew that Jones had taken the completed cheque from Smith's desk while Smith was out to lunch. 
C)  Where Green and Jones had worked together in a scheme to cheat Smith. 
D)  Where Green operated a finance company and, while not knowing Jones but recognizing Smith's signature and knowing his good reputation, had given Jones $400 for the $500 cheque. 
E)  Where Jones had changed the $500 to read $5000 by adding a zero and rubbing out the word hundred and writing thousand over it. The alteration was clearly visible on the cheque.

Question 14

What is a bankruptcy offence? Give an example.

Accepted Answer

A bankruptcy offence is some act on the

Question 15

Which one of the following statements about bankruptcy is true?

Accepted Answer

A)  Bankruptcy law is different in every province of Canada. 
B)  Bankruptcy refers to a situation in which a debtor who cannot pay debts transfers his assets to the creditors directly. 
C)  Bankruptcy law forces a debtor to pay all his debts, regardless of his financial position. 
D)  All creditors of a bankrupt debtor are treated equally and will receive shares of the assets directly in proportion to how much is owed to each of them. 
E)  A debtor who has been discharged from bankruptcy is free from recovery proceedings from most of his unsecured creditors previous to bankruptcy. 
A)  Bankruptcy law is different in every province of Canada. 
B)  Bankruptcy refers to a situation in which a debtor who cannot pay debts transfers his assets to the creditors directly. 
C)  Bankruptcy law forces a debtor to pay all his debts, regardless of his financial position. 
D)  All creditors of a bankrupt debtor are treated equally and will receive shares of the assets directly in proportion to how much is owed to each of them. 
E)  A debtor who has been discharged from bankruptcy is free from recovery proceedings from most of his unsecured creditors previous to bankruptcy.

Question 16

Explain the role of the trustee in bankruptcy proceedings.

Accepted Answer

The function of the trustee is

Question 17

With few exceptions, once a bankrupt is discharged, there is no longer an obligation to pay back the unsecured creditors.

Accepted Answer

A) True 
 B)False

Question 18

Provide an example of legislation that gives the federal government priority over all other creditors, including secured creditors.

Accepted Answer

Examples include the Income Ta

Question 19

The Bankruptcy and Insolvency Act allows a supplier of goods to a bankrupt to seek return of those goods.

Accepted Answer

A) True 
 B)False

Question 20

________ requires the debtor to make the stipulated payments into court, such that all of his debts will be paid in full within three years, unless the creditors consent to a longer period.

Accepted Answer

A)  An OPD program 
B)  Restructuring 
C)  An unsecured creditor 
D)  A consolidation order 
E)  A Division 1 proposal 
A)  An OPD program 
B)  Restructuring 
C)  An unsecured creditor 
D)  A consolidation order 
E)  A Division 1 proposal

In a secured transaction pursuant to the Personal Property Security Act, etc., what is the purpose of a registration?

With regard to guarantees and indemnities, which of the following is False?

The bulk sales acts in place in some provinces are designed to do which of the following?

When the transaction is registered, the creditor's rights include all of the following except

Some debtors can submit a reorganization proposal to avoid bankruptcy.

Identify which of the following statements is true about secured transactions in provinces having a personal property security act.

Once the bankrupt has been discharged, explain his status.

Which of the following debts is not subject to a stay of proceedings even after a bankrupt has been discharged?

Distinguish between attachment and perfection under the Personal Property Security Act.

A Division I proposal is available only to consumer debtors with less than $75,000 in claims against them.

Jones did work for Smith, who agreed to pay him in advance by cheque. Smith prepared a cheque for Jones. In which of the following situations would Smith have to honour the cheque to Green after it had been transferred to her by Jones?

What is a bankruptcy offence? Give an example.

Which one of the following statements about bankruptcy is true?

Explain the role of the trustee in bankruptcy proceedings.

With few exceptions, once a bankrupt is discharged, there is no longer an obligation to pay back the unsecured creditors.

Provide an example of legislation that gives the federal government priority over all other creditors, including secured creditors.

The Bankruptcy and Insolvency Act allows a supplier of goods to a bankrupt to seek return of those goods.

________ requires the debtor to make the stipulated payments into court, such that all of his debts will be paid in full within three years, unless the creditors consent to a longer period.

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes: the Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contract: Consensus and Consideration

The Elements of a Contract: Capacity, Legality, and Intention

Factors Affecting the Contractual Relationship

The End of the Contractual Relationship

Agency and Partnership

Corporations

Employment

Intellectual Property

Real and Personal Property and Protection of the Environment

Sales and Consumer Protection

Filters

Exam 15: Priority of Creditors

In a secured transaction pursuant to the Personal Property Security Act, etc., what is the purpose of a registration?

With regard to guarantees and indemnities, which of the following is False?

The bulk sales acts in place in some provinces are designed to do which of the following?

When the transaction is registered, the creditor's rights include all of the following except

Some debtors can submit a reorganization proposal to avoid bankruptcy.

Identify which of the following statements is true about secured transactions in provinces having a personal property security act.

Once the bankrupt has been discharged, explain his status.

Which of the following debts is not subject to a stay of proceedings even after a bankrupt has been discharged?

Distinguish between attachment and perfection under the Personal Property Security Act.

A Division I proposal is available only to consumer debtors with less than $75,000 in claims against them.

Jones did work for Smith, who agreed to pay him in advance by cheque. Smith prepared a cheque for Jones. In which of the following situations would Smith have to honour the cheque to Green after it had been transferred to her by Jones?

What is a bankruptcy offence? Give an example.

Which one of the following statements about bankruptcy is true?

Explain the role of the trustee in bankruptcy proceedings.

With few exceptions, once a bankrupt is discharged, there is no longer an obligation to pay back the unsecured creditors.

Provide an example of legislation that gives the federal government priority over all other creditors, including secured creditors.

The Bankruptcy and Insolvency Act allows a supplier of goods to a bankrupt to seek return of those goods.

________ requires the debtor to make the stipulated payments into court, such that all of his debts will be paid in full within three years, unless the creditors consent to a longer period.

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes: the Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contract: Consensus and Consideration

The Elements of a Contract: Capacity, Legality, and Intention

Factors Affecting the Contractual Relationship

The End of the Contractual Relationship

Agency and Partnership

Corporations

Employment

Intellectual Property

Real and Personal Property and Protection of the Environment

Sales and Consumer Protection

Filters