Question 1

Consider the following statements about the use of personal property as security for a creditor in a creditor-debtor transaction.Indicate the false statement.

Accepted Answer

A) If the transaction involves the use of consumer goods as collateral,upon default of payment by the debtor,the creditor can seize the goods and sell them,but also always retains the right to sue the debtor on his personal covenant to pay for any deficiency. 
B) Regardless of the type of personal property involved,whether tangible or intangible,as long as it is being used as security then the transaction is governed by the Personal Property Security Act,and therefore an unpaid creditor may be able to repossess them. 
C) Real estate professionals need to be aware of the Personal Property Security Act because items that constitute fixtures under real property law may also constitute chattel security,and thus an unpaid creditor may be able to repossess them. 
D) Before a creditor who has been promised an interest in personal property as security can claim priority rights,two processes must have taken place: the security interest must have attached to the collateral item,and the security must have been perfected. 
E) If the required procedures have taken place,a potential buyer from an unscrupulous debtor who has already given personal property as security will be protected; i.e.,the creditor will either have registered his interest in the Personal Property Registry or will have actual possession of the collateral. 
A) If the transaction involves the use of consumer goods as collateral,upon default of payment by the debtor,the creditor can seize the goods and sell them,but also always retains the right to sue the debtor on his personal covenant to pay for any deficiency. 
B) Regardless of the type of personal property involved,whether tangible or intangible,as long as it is being used as security then the transaction is governed by the Personal Property Security Act,and therefore an unpaid creditor may be able to repossess them. 
C) Real estate professionals need to be aware of the Personal Property Security Act because items that constitute fixtures under real property law may also constitute chattel security,and thus an unpaid creditor may be able to repossess them. 
D) Before a creditor who has been promised an interest in personal property as security can claim priority rights,two processes must have taken place: the security interest must have attached to the collateral item,and the security must have been perfected. 
E) If the required procedures have taken place,a potential buyer from an unscrupulous debtor who has already given personal property as security will be protected; i.e.,the creditor will either have registered his interest in the Personal Property Registry or will have actual possession of the collateral.

Question 2

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 3

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

Accepted Answer

The creditor's rights under the Personal

Question 4

Distinguish between receivership and bankruptcy where corporations are concerned.

Accepted Answer

Bankruptcy is the formal process done un

Question 5

Discuss situations in which a secured creditor may opt not to seize property used as security and the rationale for taking this approach.

Accepted Answer

When a debtor defaults,a secured credito

Question 6

What is the primary remedy available when goods have been used to secure a loan which has been defaulted?

Accepted Answer

Seizure of

Question 7

Crops still in the ground and products in the process of being made can be used by Chartered Banks as security.

Accepted Answer

A) True 
 B)False

Question 8

Explain what is meant by a "chose in action."

Accepted Answer

A chose in action is a non-tan

Question 9

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 10

With regard to bankruptcy and debt collection,which of the following is false?

Accepted Answer

A) The Bankruptcy and Insolvency Act provides for a procedure for an insolvent debtor to make a proposal to his creditors that may or may not result in bankruptcy for the debtor. 
B) Both fraudulent conveyance and fraudulent preferences acts attempt to prohibit the debtor from delaying,hindering,or defrauding the creditor. 
C) Corporations that go into receivership may not be involved in bankruptcy; the receivership may be based on contract. 
D) The commission of a bankruptcy offence could prevent a bankrupt debtor from being discharged. 
E) Any assets obtained by a discharged bankrupt can still be claimed by former unsecured creditors who placed the former bankrupt into bankruptcy. 
A) The Bankruptcy and Insolvency Act provides for a procedure for an insolvent debtor to make a proposal to his creditors that may or may not result in bankruptcy for the debtor. 
B) Both fraudulent conveyance and fraudulent preferences acts attempt to prohibit the debtor from delaying,hindering,or defrauding the creditor. 
C) Corporations that go into receivership may not be involved in bankruptcy; the receivership may be based on contract. 
D) The commission of a bankruptcy offence could prevent a bankrupt debtor from being discharged. 
E) Any assets obtained by a discharged bankrupt can still be claimed by former unsecured creditors who placed the former bankrupt into bankruptcy.

Question 11

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 12

If a fraudulent transfer is made to a bona fide purchaser for value,the transaction can still be reversed for a period of one year.

Accepted Answer

A) True 
 B)False

Question 13

In Re Fancy,a businessman knew that he was facing substantial losses from pending litigation.Shortly before declaring bankruptcy,he transferred his interest in the matrimonial home to his wife.What was the result?

Accepted Answer

A) The Court reversed the transfer,because it was unnecessary: The wife would automatically receive the matrimonial home once the bankruptcy took effect. 
B) The Court allowed the transfer,determining the wife was not a co-conspirator. 
C) The Court allowed the transfer,because transfers between spouses are exempt under the Bankruptcy and Insolvency Act. 
D) The Court reversed the transfer,determining it was a prohibited settlement under the Bankruptcy and Insolvency Act. 
E) The Court declined to exercise jurisdiction because a bankrupt has no status to appear in court. 
A) The Court reversed the transfer,because it was unnecessary: The wife would automatically receive the matrimonial home once the bankruptcy took effect. 
B) The Court allowed the transfer,determining the wife was not a co-conspirator. 
C) The Court allowed the transfer,because transfers between spouses are exempt under the Bankruptcy and Insolvency Act. 
D) The Court reversed the transfer,determining it was a prohibited settlement under the Bankruptcy and Insolvency Act. 
E) The Court declined to exercise jurisdiction because a bankrupt has no status to appear in court.

Question 14

What is the effect of a payment made in preference to one creditor over another?

Accepted Answer

The answer of What is the effect of a payment...

Question 15

As long as the debtor lives up to the terms of an accepted consumer proposal,creditors cannot take action against him/her.

Accepted Answer

A) True 
 B)False

Question 16

Explain the purpose of the bankruptcy process.

Accepted Answer

The bankruptcy process is intended to en

Question 17

Attachment takes place when

Accepted Answer

A) a contract is executed. 
B) notice of a security arrangement is given. 
C) after-acquired assets are secured. 
D) a debtor receives some value under the contract. 
E) a purchase money security interest arises. 
A) a contract is executed. 
B) notice of a security arrangement is given. 
C) after-acquired assets are secured. 
D) a debtor receives some value under the contract. 
E) a purchase money security interest arises.

Question 18

Why is the distinction between a guarantee and an indemnity important?

Accepted Answer

In some provinces,a guarantee

Question 19

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

Accepted Answer

on all present and a

Question 20

What are the practical consequences affecting the individual who declares personal bankruptcy?

Accepted Answer

If he becomes bankrupt,he will lose most

Consider the following statements about the use of personal property as security for a creditor in a creditor-debtor transaction.Indicate the false statement.

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

Distinguish between receivership and bankruptcy where corporations are concerned.

Discuss situations in which a secured creditor may opt not to seize property used as security and the rationale for taking this approach.

What is the primary remedy available when goods have been used to secure a loan which has been defaulted?

Crops still in the ground and products in the process of being made can be used by Chartered Banks as security.

Explain what is meant by a "chose in action."

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

With regard to bankruptcy and debt collection,which of the following is false?

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

If a fraudulent transfer is made to a bona fide purchaser for value,the transaction can still be reversed for a period of one year.

In Re Fancy,a businessman knew that he was facing substantial losses from pending litigation.Shortly before declaring bankruptcy,he transferred his interest in the matrimonial home to his wife.What was the result?

What is the effect of a payment made in preference to one creditor over another?

As long as the debtor lives up to the terms of an accepted consumer proposal,creditors cannot take action against him/her.

Explain the purpose of the bankruptcy process.

Attachment takes place when

Why is the distinction between a guarantee and an indemnity important?

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

What are the practical consequences affecting the individual who declares personal bankruptcy?

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

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Exam 15: Priority of Creditors

Consider the following statements about the use of personal property as security for a creditor in a creditor-debtor transaction.Indicate the false statement.

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

Distinguish between receivership and bankruptcy where corporations are concerned.

Discuss situations in which a secured creditor may opt not to seize property used as security and the rationale for taking this approach.

What is the primary remedy available when goods have been used to secure a loan which has been defaulted?

Crops still in the ground and products in the process of being made can be used by Chartered Banks as security.

Explain what is meant by a "chose in action."

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

With regard to bankruptcy and debt collection,which of the following is false?

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

If a fraudulent transfer is made to a bona fide purchaser for value,the transaction can still be reversed for a period of one year.

In Re Fancy,a businessman knew that he was facing substantial losses from pending litigation.Shortly before declaring bankruptcy,he transferred his interest in the matrimonial home to his wife.What was the result?

What is the effect of a payment made in preference to one creditor over another?

As long as the debtor lives up to the terms of an accepted consumer proposal,creditors cannot take action against him/her.

Explain the purpose of the bankruptcy process.

Attachment takes place when

Why is the distinction between a guarantee and an indemnity important?

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

What are the practical consequences affecting the individual who declares personal bankruptcy?

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