Question 1

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. E

Question 2

Greg told Rick that he would be willing to pay a high rate of interest for a two-month loan of $2000.Rick agreed to lend Greg this amount at an annual rate of 20%,repayable March 1,2016.Greg agreed to these terms.Greg did not pay on March 1.Rick learned that Greg had recently completed some work for Martinson for which Greg was owed $2000.Now that Greg is in default,which of the following is false?

Accepted Answer

A) Rick could sue Greg for breach of contract. 
B) Rick could execute against Greg even if Rick had not obtained judgment against him. 
C) Rick could not place Greg into bankruptcy unless Greg had committed an act of bankruptcy. 
D) If Rick obtained a judgment against Greg,he could compel him to be examined about his income,property,and debts. 
E) Once he has obtained judgment,Rick can garnishee the money owed to Greg by Martinson. 
A) Rick could sue Greg for breach of contract. 
B) Rick could execute against Greg even if Rick had not obtained judgment against him. 
C) Rick could not place Greg into bankruptcy unless Greg had committed an act of bankruptcy. 
D) If Rick obtained a judgment against Greg,he could compel him to be examined about his income,property,and debts. 
E) Once he has obtained judgment,Rick can garnishee the money owed to Greg by Martinson. B

Question 3

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

Accepted Answer

Students should note that this attitude is one taken by some debtors,who may even declare bankruptcy on more than one occasion.This attitude,however,is clearly an abuse of the process.Those debtors who are tempted to abuse the process should realize that committing bankruptcy offences will likely result in fines and/or imprisonment.Also,when a debtor has been abusing the process (e.g.,by failing to cooperate,hiding assets,etc.)the courts will be reluctant to grant an unconditional discharge.Conditions can include,for example,a requirement that the bankrupt first pay a significant amount to creditors. Bankruptcy does not allow a bankrupt to simply walk away from his or her debts.If a debtor becomes bankrupt,he or she will lose most of his or her property.A bankrupt will also find it difficult in the future to conduct business or to make personal credit purchases.During the bankruptcy process,the bankrupt is required to continue to make regular surplus income payments to the Trustee for distribution to creditors.Furthermore,some obligations even survive a discharge from bankruptcy (such as fines,alimony and maintenance payments,some civil damage awards,student loans,etc.).

Question 4

What obligations are placed on the owner of property in respect of builders' liens?

Accepted Answer

Under the relevant legislation,the owner

Question 5

Explain two methods for a debtor becoming bankrupt.

Accepted Answer

Voluntary assignment is where the debtor

Question 6

Both a chattel and a chose in action can be used to secure a debt.

Accepted Answer

A) True 
 B)False

Question 7

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 8

Distinguish between a guarantee and an indemnity.

Accepted Answer

A guarantee is an agreement to pay a deb

Question 9

Some debtors can submit a reorganization proposal to avoid bankruptcy.

Accepted Answer

A) True 
 B)False

Question 10

Explain the purpose of the Fraudulent Preferences Act (name will vary from province to province).

Accepted Answer

This act prohibits the debtor

Question 11

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 12

What alternatives are available to the bankruptcy process?

Accepted Answer

The Bankruptcy and Insolvency Act allows

Question 13

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

Question 14

If you want to buy a car from a private party (other than a dealer),which of the following is false?

Accepted Answer

A) If you request a search and the Personal Property Registry states that the car is free and clear of liens and encumbrances,then title is clear. 
B) If the seller tells you that the car is free and clear,and two months later a holder of a properly perfected and attached security interest claims a right to the car,you could lose the car. 
C) Even if both the seller and the Personal Property Registry indicate to you that the car's title is clear,you could still lose it to a third party. 
D) If the seller indicates to you that the title is clear,but after the sale the car is seized by someone with the legal right to do so,you could still sue the seller. 
E) If the seller makes no representations whatsoever about the car and the car is seized by a creditor,you can still sue the seller because he had an obligation to deliver good title. 
A) If you request a search and the Personal Property Registry states that the car is free and clear of liens and encumbrances,then title is clear. 
B) If the seller tells you that the car is free and clear,and two months later a holder of a properly perfected and attached security interest claims a right to the car,you could lose the car. 
C) Even if both the seller and the Personal Property Registry indicate to you that the car's title is clear,you could still lose it to a third party. 
D) If the seller indicates to you that the title is clear,but after the sale the car is seized by someone with the legal right to do so,you could still sue the seller. 
E) If the seller makes no representations whatsoever about the car and the car is seized by a creditor,you can still sue the seller because he had an obligation to deliver good title.

Question 15

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 16

"Joe bought a car from Harry's Fine Cars on time secured by a Security Agreement.It ran fine for a while,then he had a series of problems with it that made Joe regret ever entering into the transaction.Joe simply stopped paying,knowing that the only thing that Harry could do was repossess the goods." Explain the accuracy of the final statement.

Accepted Answer

The statement is inaccurate.In fact,Harr

Question 17

"The main purpose of security is to provide some recourse to the person claiming to be paid if some dispute arises about the quality of the performance of the contract." Discuss the accuracy of this statement.

Accepted Answer

This statement is inaccurate.T

Question 18

Bret decided to enlarge the fishpond in his backyard.He contracted with a general contractor,Conan.Conan subcontracted with Darson to do the excavation and with Ericson to do the plumbing.Conan's own workers did the masonry work.Bret made "progress payments" to Conan,since Conan said such payments were necessary to pay his workers and subcontractors.Bret learned that the workers and subcontractors had not been paid and Conan had used the payments to pay debts unrelated to the job on Bret's pond.Which of the following best describes Bret's position?

Accepted Answer

A) Because of the doctrine of privity of contract,Bret will not face any liability whatsoever. 
B) If Bret held back the 10% required by statute from his payments to Conan,but then later paid it out despite liens having been filed against his property,Bret would still face no liability as he technically complied with the legislation. 
C) Bret will be liable for all unpaid amounts because the work was on his land and for his benefit. 
D) If Bret held back the 10% required by statute from his payments to Conan,his obligation would generally be limited to the amount of that holdback. 
E) Bret had no obligation to hold back any amount of the payments made to Conan as the hold back requirement doesn't apply to progress payments. 
A) Because of the doctrine of privity of contract,Bret will not face any liability whatsoever. 
B) If Bret held back the 10% required by statute from his payments to Conan,but then later paid it out despite liens having been filed against his property,Bret would still face no liability as he technically complied with the legislation. 
C) Bret will be liable for all unpaid amounts because the work was on his land and for his benefit. 
D) If Bret held back the 10% required by statute from his payments to Conan,his obligation would generally be limited to the amount of that holdback. 
E) Bret had no obligation to hold back any amount of the payments made to Conan as the hold back requirement doesn't apply to progress payments.

Question 19

What is the purpose of the Fraudulent Conveyances Act? (The name varies with the province.)

Accepted Answer

This act is designed to prohib

Question 20

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

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

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

What obligations are placed on the owner of property in respect of builders' liens?

Explain two methods for a debtor becoming bankrupt.

Both a chattel and a chose in action can be used to secure a debt.

Distinguish between a guarantee and an indemnity.

Some debtors can submit a reorganization proposal to avoid bankruptcy.

Explain the purpose of the Fraudulent Preferences Act (name will vary from province to province).

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

What alternatives are available to the bankruptcy process?

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

If you want to buy a car from a private party (other than a dealer),which of the following is false?

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

"The main purpose of security is to provide some recourse to the person claiming to be paid if some dispute arises about the quality of the performance of the contract." Discuss the accuracy of this statement.

What is the purpose of the Fraudulent Conveyances Act? (The name varies with the province.)

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

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

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

What obligations are placed on the owner of property in respect of builders' liens?

Explain two methods for a debtor becoming bankrupt.

Both a chattel and a chose in action can be used to secure a debt.

Distinguish between a guarantee and an indemnity.

Some debtors can submit a reorganization proposal to avoid bankruptcy.

Explain the purpose of the Fraudulent Preferences Act (name will vary from province to province).

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

What alternatives are available to the bankruptcy process?

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

If you want to buy a car from a private party (other than a dealer),which of the following is false?

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

"The main purpose of security is to provide some recourse to the person claiming to be paid if some dispute arises about the quality of the performance of the contract." Discuss the accuracy of this statement.

What is the purpose of the Fraudulent Conveyances Act? (The name varies with the province.)

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