Question 1

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 2

Bankruptcy is a wholly voluntary process designed primarily to protect debtors from abusive creditors.

Accepted Answer

A) True 
 B)False

Question 3

After a creditor has taken possession of collateral,the debtor's right to reclaim it on payment of any money owing is known as a

Accepted Answer

A) right to salvage. 
B) right of settlement. 
C) right to redeem. 
D) constructive trust. 
E) collateral contract. 
A) right to salvage. 
B) right of settlement. 
C) right to redeem. 
D) constructive trust. 
E) collateral contract.

Question 4

A "confirmed letter of credit" is another name for a "standby letter of credit."

Accepted Answer

A) True 
 B)False

Question 5

What is a bankruptcy offence? Give an example.

Accepted Answer

A bankruptcy offence is some act on the

Question 6

Which of the following is a goal of the Bankruptcy and Insolvency Act?

Accepted Answer

A) To determine the process by which debtors convey their assets to a trustee in bankruptcy who distributes them to the creditors 
B) To provide an alternative to criminal charges 
C) To allow persons with impossible burdens of debt to discharge all of their debts 
D) To protect the interests of debtors 
E) To help incorporated companies after discharge to carry on without the same burden of debt 
A) To determine the process by which debtors convey their assets to a trustee in bankruptcy who distributes them to the creditors 
B) To provide an alternative to criminal charges 
C) To allow persons with impossible burdens of debt to discharge all of their debts 
D) To protect the interests of debtors 
E) To help incorporated companies after discharge to carry on without the same burden of debt

Question 7

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 8

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 9

Owen had borrowed money from a credit union to purchase a car,and the credit union had required a security interest against the car,which they registered under the Personal Property Security Act.As well,Owen's father guaranteed the loan.Some months later,Owen decided to go back to school,and he had to sell the car to do so.He returned to the credit union and,at his request,the credit union gave up the security they had against the vehicle,knowing that they still had the loan guaranteed by Owen's father.Explain the wisdom of this move.

Accepted Answer

It was foolish on the part of the credit

Question 10

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 11

Which of the following is the consequence of an unpaid subcontractor failing to file his lien on time? The owner had contracted with the general contractor who in turn had contracted with this subcontractor.

Accepted Answer

A) He can submit documents giving his reason and he will be allowed to file the lien late. 
B) He will lose all of his remedies. 
C) He will lose his right to place a charge against the owner's property,but he can sue the owner directly for the amount owed him,because his work and materials went into the owner's house. 
D) He would lose his right to place a charge against the owner's property,but he can sue the contractor on the contract. 
E) He loses his right to claim against the building but can sue the owner of the property directly. 
A) He can submit documents giving his reason and he will be allowed to file the lien late. 
B) He will lose all of his remedies. 
C) He will lose his right to place a charge against the owner's property,but he can sue the owner directly for the amount owed him,because his work and materials went into the owner's house. 
D) He would lose his right to place a charge against the owner's property,but he can sue the contractor on the contract. 
E) He loses his right to claim against the building but can sue the owner of the property directly.

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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 14

Amy Carr looked at a 2016 Ford being sold by a private party who told Carr that the car was free and clear of all encumbrances.Carr had the Ford inspected by Automobile Association,which reported it to be in good condition.Carr bought the Ford for $8000.Two months later,the car was seized by a bank that had properly perfected and attached its security interest.On these facts,which of the following is true?

Accepted Answer

A) Carr would be able to keep the Ford because the seller had represented that the Ford was free and clear of encumbrances. 
B) Carr would be able to keep the Ford because she was an innocent purchaser without notice of any lien or charge. 
C) The bank would get the Ford because it had title to it as security,and it could claim its right to title whether it perfected and attached the security interest or not. 
D) The bank would get the Ford because it properly perfected and attached its security interest. 
E) Carr will lose the car and has no recourse against anyone. 
A) Carr would be able to keep the Ford because the seller had represented that the Ford was free and clear of encumbrances. 
B) Carr would be able to keep the Ford because she was an innocent purchaser without notice of any lien or charge. 
C) The bank would get the Ford because it had title to it as security,and it could claim its right to title whether it perfected and attached the security interest or not. 
D) The bank would get the Ford because it properly perfected and attached its security interest. 
E) Carr will lose the car and has no recourse against anyone.

Question 15

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 16

Explain the purpose of the Personal Property Security Act.

Accepted Answer

Its purpose is to bring all of

Question 17

Who is responsible for repossessing the goods?

Accepted Answer

The creditor instruc

Question 18

Hank sold three properties for Mr.W and had been paid his commission for the first,but not for the last two.Hank had done everything according to the contract and according to the relevant statutes,but Mr.W wouldn't pay.Hank knows that Mr.W has a bank account with the Bank of Winnipeg and has money owing to him from a Mr.Gregory.With regard to the collecting of the debt owed,which of the following is false?

Accepted Answer

A) Hank could sue Mr.W for breach of contract. 
B) After obtaining judgment,Hank could force the bank to pay into court an amount of money from Mr.W's account to satisfy the debt. 
C) Hank's claim for commission is unenforceable because he failed to secure the debt by retaining title until the amounts were paid. 
D) If Hank got judgment against Mr.W,he could get an order commanding seizure of enough of Mr.W's goods to satisfy the judgment debt. 
E) If Mr.W goes into bankruptcy,Hank may not get paid. 
A) Hank could sue Mr.W for breach of contract. 
B) After obtaining judgment,Hank could force the bank to pay into court an amount of money from Mr.W's account to satisfy the debt. 
C) Hank's claim for commission is unenforceable because he failed to secure the debt by retaining title until the amounts were paid. 
D) If Hank got judgment against Mr.W,he could get an order commanding seizure of enough of Mr.W's goods to satisfy the judgment debt. 
E) If Mr.W goes into bankruptcy,Hank may not get paid.

Question 19

Explain how,in a creditor/debtor transaction,the exposure of a guarantor is limited and his rights protected.

Accepted Answer

A guarantor is in a unique position and

Question 20

Once the bankrupt has been discharged,explain his status.

Accepted Answer

He is free of debt and is no l

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.

Bankruptcy is a wholly voluntary process designed primarily to protect debtors from abusive creditors.

After a creditor has taken possession of collateral,the debtor's right to reclaim it on payment of any money owing is known as a

A "confirmed letter of credit" is another name for a "standby letter of credit."

What is a bankruptcy offence? Give an example.

Which of the following is a goal of the Bankruptcy and Insolvency Act?

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

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

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.

Which of the following is the consequence of an unpaid subcontractor failing to file his lien on time? The owner had contracted with the general contractor who in turn had contracted with this subcontractor.

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

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

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

Explain the purpose of the Personal Property Security Act.

Who is responsible for repossessing the goods?

Explain how,in a creditor/debtor transaction,the exposure of a guarantor is limited and his rights protected.

Once the bankrupt has been discharged,explain his status.

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

Bankruptcy is a wholly voluntary process designed primarily to protect debtors from abusive creditors.

After a creditor has taken possession of collateral,the debtor's right to reclaim it on payment of any money owing is known as a

A "confirmed letter of credit" is another name for a "standby letter of credit."

What is a bankruptcy offence? Give an example.

Which of the following is a goal of the Bankruptcy and Insolvency Act?

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

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

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.

Which of the following is the consequence of an unpaid subcontractor failing to file his lien on time? The owner had contracted with the general contractor who in turn had contracted with this subcontractor.

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

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

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

Explain the purpose of the Personal Property Security Act.

Who is responsible for repossessing the goods?

Explain how,in a creditor/debtor transaction,the exposure of a guarantor is limited and his rights protected.

Once the bankrupt has been discharged,explain his status.

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