Question 1

Who is responsible for repossessing the goods?

Accepted Answer

The creditor instruc

Question 2

When a supplier of goods such as a wholesaler transfers those goods to a debtor, who then goes bankrupt, explain the supplier's legal position.

Accepted Answer

So long as those goods remain in the pos

Question 3

Which one of the following is False with regard to creditors' remedies?

Accepted Answer

A)  A garnisheeing order is an order to the sheriff or civil enforcement agent to seize assets of a judgment creditor to satisfy a judgment debt. 
B)  A person who wins in an action and is awarded damages is called a judgment creditor. 
C)  A guarantor is a person who agrees to be responsible for a debt if the borrower (the person primarily liable) defaults. 
D)  A General Security Agreement debenture can create a security interest in "all present and after acquired property." 
E)  A guarantor may avoid liability if the creditor does some act or enters into an agreement that weakens the guarantor's position. 
A)  A garnisheeing order is an order to the sheriff or civil enforcement agent to seize assets of a judgment creditor to satisfy a judgment debt. 
B)  A person who wins in an action and is awarded damages is called a judgment creditor. 
C)  A guarantor is a person who agrees to be responsible for a debt if the borrower (the person primarily liable) defaults. 
D)  A General Security Agreement debenture can create a security interest in "all present and after acquired property." 
E)  A guarantor may avoid liability if the creditor does some act or enters into an agreement that weakens the guarantor's position.

Question 4

A security not fixed on any specific assets is called a security interest ________.

Accepted Answer

on all present and a

Question 5

Which one of the following is true with respect to the builder's lien acts?

Accepted Answer

A)  Various provincial statutes give suppliers of work and materials a claim for payment against the land enhanced by their services. 
B)  If a lien claimant files his lien within the time set, he can be assured that he will collect the full amount of his claim. 
C)  Compliance with the statutory holdback provisions is required, but gives an owner no protection against potential lien claims. 
D)  If a lien claimant loses the right to file a lien, he also loses the right to sue for breach of contract. 
E)  A lien claimant owed money by a general contractor can choose to pursue either the general contractor or the property owner for the full amount of the claim. 
A)  Various provincial statutes give suppliers of work and materials a claim for payment against the land enhanced by their services. 
B)  If a lien claimant files his lien within the time set, he can be assured that he will collect the full amount of his claim. 
C)  Compliance with the statutory holdback provisions is required, but gives an owner no protection against potential lien claims. 
D)  If a lien claimant loses the right to file a lien, he also loses the right to sue for breach of contract. 
E)  A lien claimant owed money by a general contractor can choose to pursue either the general contractor or the property owner for the full amount of the claim.

Question 6

Distinguish between receivership and bankruptcy where corporations are concerned.

Accepted Answer

Bankruptcy is the formal process done un

Question 7

When creditors receive notice of a consumer proposal from an insolvent debtor, they must demand a meeting or the proposal will be automatically accepted.

Accepted Answer

A) True 
 B)False

Question 8

Explain the purpose of the bankruptcy process.

Accepted Answer

The bankruptcy process is intended to en

Question 9

Explain two methods for a debtor becoming bankrupt.

Accepted Answer

Voluntary assignment is where the debtor

Question 10

Distinguish between a guarantee and an indemnity.

Accepted Answer

A guarantee is an agreement to pay a deb

Question 11

Discuss the bankruptcy and insolvency process from the point of view of the creditor, indicating how that creditor's interests are or are not protected.

Accepted Answer

Bankruptcy involves the assets of the de

Question 12

If no builders' liens are registered within the specified time, the owner gives the holdback to the general contractor.

Accepted Answer

A) True 
 B)False

Question 13

Where, in the face of default, goods are repossessed and resold, but the amount recovered is not enough to cover what is owing, what are the rights of the creditor?

Accepted Answer

This varies from jurisdiction to jurisdi

Question 14

Explain what constitutes a bulk sale and how they are controlled in some jurisdictions.

Accepted Answer

A bulk sale is where a business sells no

Question 15

As the fishing season slowed down in the fall, Bob decided that it might be a good time to find a real bargain in used equipment for his boat. He found a navigation instrument for sale for $15,000, a great price. However, he only had $10,000, so he borrowed the other $5,000 from the bank. He also signed a Security Agreement on the equipment as collateral in favour of the bank, which promptly registered its interest in the Personal Property Registry. Bob made his payments for a while, but things started to go badly for him. He was unable to make any further payments, although he still owed over $3000. Desperate and not thinking too clearly, Bob sold his boat to his friend Claude for $50,000 and left for Central America with the funds. When the bank realized what Bob had done, it located the boat and demanded that Claude pay off the $3000+ or lose the navigational equipment. Claude was outraged because he had paid Bob in good faith and argued that he had never borrowed anything from the bank and therefore owed it nothing. Which one of the following statements accurately describes the legal situation here?

Accepted Answer

A)  Because Bob transferred the boat and equipment to Claude, that was an assignment of his obligations and he no longer owed the debt. 
B)  Claude is right, and the bank's only remedy is to sue Bob. 
C)  If Claude is unwilling to pay off the $3000, the bank has the right to remove the equipment from the boat. 
D)  If the bank does seize the equipment and sells it for $2000, the bank can still sue Claude for the $5000. 
E)  If the bank had failed to register the chattel mortgage, it would still have a better right to the equipment than Claude, because the mortgage was signed before Bob sold the boat to him. 
A)  Because Bob transferred the boat and equipment to Claude, that was an assignment of his obligations and he no longer owed the debt. 
B)  Claude is right, and the bank's only remedy is to sue Bob. 
C)  If Claude is unwilling to pay off the $3000, the bank has the right to remove the equipment from the boat. 
D)  If the bank does seize the equipment and sells it for $2000, the bank can still sue Claude for the $5000. 
E)  If the bank had failed to register the chattel mortgage, it would still have a better right to the equipment than Claude, because the mortgage was signed before Bob sold the boat to him.

Who is responsible for repossessing the goods?

When a supplier of goods such as a wholesaler transfers those goods to a debtor, who then goes bankrupt, explain the supplier's legal position.

Which one of the following is False with regard to creditors' remedies?

A security not fixed on any specific assets is called a security interest ________.

Which one of the following is true with respect to the builder's lien acts?

Distinguish between receivership and bankruptcy where corporations are concerned.

When creditors receive notice of a consumer proposal from an insolvent debtor, they must demand a meeting or the proposal will be automatically accepted.

Explain the purpose of the bankruptcy process.

Explain two methods for a debtor becoming bankrupt.

Distinguish between a guarantee and an indemnity.

Discuss the bankruptcy and insolvency process from the point of view of the creditor, indicating how that creditor's interests are or are not protected.

If no builders' liens are registered within the specified time, the owner gives the holdback to the general contractor.

Where, in the face of default, goods are repossessed and resold, but the amount recovered is not enough to cover what is owing, what are the rights of the creditor?

Explain what constitutes a bulk sale and how they are controlled in some jurisdictions.

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

Who is responsible for repossessing the goods?

When a supplier of goods such as a wholesaler transfers those goods to a debtor, who then goes bankrupt, explain the supplier's legal position.

Which one of the following is False with regard to creditors' remedies?

A security not fixed on any specific assets is called a security interest ________.

Which one of the following is true with respect to the builder's lien acts?

Distinguish between receivership and bankruptcy where corporations are concerned.

When creditors receive notice of a consumer proposal from an insolvent debtor, they must demand a meeting or the proposal will be automatically accepted.

Explain the purpose of the bankruptcy process.

Explain two methods for a debtor becoming bankrupt.

Distinguish between a guarantee and an indemnity.

Discuss the bankruptcy and insolvency process from the point of view of the creditor, indicating how that creditor's interests are or are not protected.

If no builders' liens are registered within the specified time, the owner gives the holdback to the general contractor.

Where, in the face of default, goods are repossessed and resold, but the amount recovered is not enough to cover what is owing, what are the rights of the creditor?

Explain what constitutes a bulk sale and how they are controlled in some jurisdictions.

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