Question 1

What is the result of a settlement that takes place within a year of bankruptcy?

Accepted Answer

The answer of What is the result of a settlement...

Question 2

Settlements involve the transfer of assets for nominal or no consideration.

Accepted Answer

A) True 
 B)False

Question 3

What is the effect if a debtor fraudulently transfers property to a bona fide purchaser for value?

Accepted Answer

The transa

Question 4

Real and personal property can be used to secure a loan.

Accepted Answer

A) True 
 B)False

Question 5

Any substantial change in the nature of the contract between the creditor and the debtor without the guarantor's consent will relieve the guarantor of any obligation.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements regarding the securing of debt is true?

Accepted Answer

A)  The term guarantee, otherwise known as an indemnity, refers to a primary debt obligation. 
B)  To avoid problems related to consideration, lending institutions often require that guarantees be placed under seal. 
C)  In every province, there is now a requirement that a guarantor appear before a notary public. 
D)  Because of the principle of caveat emptor, a creditor has no obligation to protect the interests of a guarantor. 
E)  As guarantees are mere formalities, there is little point in getting legal advice prior to executing one. 
A)  The term guarantee, otherwise known as an indemnity, refers to a primary debt obligation. 
B)  To avoid problems related to consideration, lending institutions often require that guarantees be placed under seal. 
C)  In every province, there is now a requirement that a guarantor appear before a notary public. 
D)  Because of the principle of caveat emptor, a creditor has no obligation to protect the interests of a guarantor. 
E)  As guarantees are mere formalities, there is little point in getting legal advice prior to executing one.

Question 7

"Bankruptcy is a convenient way to avoid paying your debts." Discuss the accuracy of this statement.

Accepted Answer

Students should note that this attitude

Question 8

Identify which of the following statements best describes the legal position of a conditional seller.

Accepted Answer

A)  The conditional seller must comply with the provisions of the Personal Property Security Act to protect his interest. 
B)  He is given first priority over all of the other creditors with respect to all of the conditional buyer's assets. 
C)  The conditional seller is in a better legal position than if instead he had been the chattel mortgagee of the same assets. 
D)  The conditional seller loses all legal rights against the conditional buyer if he fails to register. 
E)  The conditional seller has no legal rights because such contracts are void. 
A)  The conditional seller must comply with the provisions of the Personal Property Security Act to protect his interest. 
B)  He is given first priority over all of the other creditors with respect to all of the conditional buyer's assets. 
C)  The conditional seller is in a better legal position than if instead he had been the chattel mortgagee of the same assets. 
D)  The conditional seller loses all legal rights against the conditional buyer if he fails to register. 
E)  The conditional seller has no legal rights because such contracts are void.

Question 9

Because of the special nature of a guarantee, there is no requirement for consideration.

Accepted Answer

A) True 
 B)False

Question 10

Legislation and the principles of contract and common law primarily protect the interests of the debtor in the event of a default.

Accepted Answer

A) True 
 B)False

Question 11

When a tenant fails to pay rent on a leased commercial property, the common law right of distress is available to the landlord.

Accepted Answer

A) True 
 B)False

Question 12

Where a debtor has defaulted and the creditor, under the Personal Property Security Act, repossesses and resells the goods, what is his obligation with respect to overages or underages?

Accepted Answer

Any surplus must be returned t

Question 13

With regard to guarantees, 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 verbal guarantee is as enforceable as a written one. 
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. 
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 verbal guarantee is as enforceable as a written one. 
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.

Question 14

In a creditor/debtor transaction, explain the purpose of security and how that purpose can be realized.

Accepted Answer

This requires that students understand a

Question 15

Explain how the rights of the creditors are protected under bankruptcy legislation.

Accepted Answer

A trustee in bankruptcy is appointed and

Question 16

They couldn't remember exactly how it happened, but the Mauri's ended up a three-computer family with the consequent mess of books and papers in three different rooms. Mr. Mauri hired a general contractor, Mr. Wip, to build a "computer room." Wip had several qualified workers but still sub-contracted with an electrician and a carpenter. The work went well. Mauri held back 10%, but paid out 90% in good faith. That is, when he paid, there were no complaints or liens filed. It turned out, however, that before anyone had completed his work-and no one expected payment until the job was finished-Wip disappeared with the money. On these facts, which of the following is true?

Accepted Answer

A)  The subcontractors, but not the workers, are entitled to place a lien on Mauri's property. 
B)  If the electrician fails to file his lien on time, he can file it late if he uses the right form. 
C)  If the carpenter properly files a lien in the appropriate office, he can be assured that he will recover the entire amount owed. 
D)  If all those entitled to file a lien do file and prove in court the amounts owed, Mauri is responsible for the sum total of those claims. 
E)  The workers and subcontractors have an action against Wip for breach of contract. 
A)  The subcontractors, but not the workers, are entitled to place a lien on Mauri's property. 
B)  If the electrician fails to file his lien on time, he can file it late if he uses the right form. 
C)  If the carpenter properly files a lien in the appropriate office, he can be assured that he will recover the entire amount owed. 
D)  If all those entitled to file a lien do file and prove in court the amounts owed, Mauri is responsible for the sum total of those claims. 
E)  The workers and subcontractors have an action against Wip for breach of contract.

Question 17

Joe bought a car from Harry's Fine Car Lot and owed him $5000 on the deal, which he was paying back at $500 a month under a Security Agreement. Harry assigned that Security Agreement to Ace Finance Company, and they served notice on Joe that he was to make his payments in future to them. Joe knew, however, that his deal was with Harry, and he ignored the notification and continued to make the payments to Harry. What danger does he face in these circumstances?

Accepted Answer

Harry's Fine Car Lot had the right to as

Question 18

A guarantee must be supported by consideration, just like any other contractual obligation. Explain what consideration is present when one person guarantees the debt of another.

Accepted Answer

If a creditor would not have advanced th

Question 19

Explain the purpose of the Personal Property Security Act.

Accepted Answer

Its purpose is to bring all of

Question 20

The debtor usually retains possession of the goods used to secure a debt while the creditor has the right to seize them for default.

Accepted Answer

A) True 
 B)False

What is the result of a settlement that takes place within a year of bankruptcy?

Settlements involve the transfer of assets for nominal or no consideration.

What is the effect if a debtor fraudulently transfers property to a bona fide purchaser for value?

Real and personal property can be used to secure a loan.

Any substantial change in the nature of the contract between the creditor and the debtor without the guarantor's consent will relieve the guarantor of any obligation.

Which of the following statements regarding the securing of debt is true?

"Bankruptcy is a convenient way to avoid paying your debts." Discuss the accuracy of this statement.

Identify which of the following statements best describes the legal position of a conditional seller.

Because of the special nature of a guarantee, there is no requirement for consideration.

Legislation and the principles of contract and common law primarily protect the interests of the debtor in the event of a default.

When a tenant fails to pay rent on a leased commercial property, the common law right of distress is available to the landlord.

Where a debtor has defaulted and the creditor, under the Personal Property Security Act, repossesses and resells the goods, what is his obligation with respect to overages or underages?

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

In a creditor/debtor transaction, explain the purpose of security and how that purpose can be realized.

Explain how the rights of the creditors are protected under bankruptcy legislation.

A guarantee must be supported by consideration, just like any other contractual obligation. Explain what consideration is present when one person guarantees the debt of another.

Explain the purpose of the Personal Property Security Act.

The debtor usually retains possession of the goods used to secure a debt while the creditor has the right to seize them for default.

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

What is the result of a settlement that takes place within a year of bankruptcy?

Settlements involve the transfer of assets for nominal or no consideration.

What is the effect if a debtor fraudulently transfers property to a bona fide purchaser for value?

Real and personal property can be used to secure a loan.

Any substantial change in the nature of the contract between the creditor and the debtor without the guarantor's consent will relieve the guarantor of any obligation.

Which of the following statements regarding the securing of debt is true?

"Bankruptcy is a convenient way to avoid paying your debts." Discuss the accuracy of this statement.

Identify which of the following statements best describes the legal position of a conditional seller.

Because of the special nature of a guarantee, there is no requirement for consideration.

Legislation and the principles of contract and common law primarily protect the interests of the debtor in the event of a default.

When a tenant fails to pay rent on a leased commercial property, the common law right of distress is available to the landlord.

Where a debtor has defaulted and the creditor, under the Personal Property Security Act, repossesses and resells the goods, what is his obligation with respect to overages or underages?

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

In a creditor/debtor transaction, explain the purpose of security and how that purpose can be realized.

Explain how the rights of the creditors are protected under bankruptcy legislation.

A guarantee must be supported by consideration, just like any other contractual obligation. Explain what consideration is present when one person guarantees the debt of another.

Explain the purpose of the Personal Property Security Act.

The debtor usually retains possession of the goods used to secure a debt while the creditor has the right to seize them for default.

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