Question 1

Which one of the following is false with respect to the Builders' Lien Act?

Accepted Answer

A) The lien claim is required to be filed at the appropriate registry in order to establish a claim against the property. 
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) The Builders' Lien Act gives some protection for those in the building trades,and these include contractors,subcontractors,workers,and materialmen. 
D) If a lien claimant loses the right to file a lien,he still has the right to sue the party who failed to pay him for breach of contract. 
E) A lien claimant has a limited period of time from filing his lien within which to begin his court action. 
A) The lien claim is required to be filed at the appropriate registry in order to establish a claim against the property. 
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) The Builders' Lien Act gives some protection for those in the building trades,and these include contractors,subcontractors,workers,and materialmen. 
D) If a lien claimant loses the right to file a lien,he still has the right to sue the party who failed to pay him for breach of contract. 
E) A lien claimant has a limited period of time from filing his lien within which to begin his court action.

Question 2

Which one of the following statements about bankruptcy is true?

Accepted Answer

A) Bankruptcy law is different in every province of Canada. 
B) Bankruptcy refers to a situation in which a debtor who cannot pay debts transfers his assets to the creditors directly. 
C) Bankruptcy law forces a debtor to pay all his debts,regardless of his financial position. 
D) All creditors of a bankrupt debtor are treated equally and will receive shares of the assets directly in proportion to how much is owed to each of them. 
E) A debtor who has been discharged from bankruptcy is free from recovery proceedings from most of his unsecured creditors previous to bankruptcy. 
A) Bankruptcy law is different in every province of Canada. 
B) Bankruptcy refers to a situation in which a debtor who cannot pay debts transfers his assets to the creditors directly. 
C) Bankruptcy law forces a debtor to pay all his debts,regardless of his financial position. 
D) All creditors of a bankrupt debtor are treated equally and will receive shares of the assets directly in proportion to how much is owed to each of them. 
E) A debtor who has been discharged from bankruptcy is free from recovery proceedings from most of his unsecured creditors previous to bankruptcy.

Question 3

When a security interest is taken on personal property in a PPSA jurisdiction,the borrower temporarily transfers title to lender.

Accepted Answer

A) True 
 B)False

Question 4

What is the role of the Superintendent of Bankruptcy?

Accepted Answer

The Superintendent of Bankrupt

Question 5

A continuing guarantee

Accepted Answer

A) allows a creditor to advance further funds without affecting the obligation of the guarantor to pay in the event of default. 
B) is a primary obligation of a third party to pay a debt along with a debtor. 
C) is a written commitment not to pursue a legal claim against another. 
D) is an equitable principle assuring that when security is repossessed,there will be a period of time during which the debtor can still make payment. 
E) allows a breaching party to pay an amount specified in a contract,rather than facing a lawsuit for damages. 
A) allows a creditor to advance further funds without affecting the obligation of the guarantor to pay in the event of default. 
B) is a primary obligation of a third party to pay a debt along with a debtor. 
C) is a written commitment not to pursue a legal claim against another. 
D) is an equitable principle assuring that when security is repossessed,there will be a period of time during which the debtor can still make payment. 
E) allows a breaching party to pay an amount specified in a contract,rather than facing a lawsuit for damages.

Question 6

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.

Question 7

Which one of the following statements about bankruptcy is false?

Accepted Answer

A) Bankruptcy law is identical in every province of Canada. 
B) Bankruptcy refers to a situation in which a debtor who cannot pay debts transfers his assets to a trustee who acts on behalf of creditors. 
C) Bankruptcy law may allow a debtor to escape from having to pay his debts. 
D) All creditors of a bankrupt debtor are treated equally and will receive shares of the assets directly in proportion to how much is owed to each of them. 
E) A debtor who has been discharged from bankruptcy is released from his previous financial obligations. 
A) Bankruptcy law is identical in every province of Canada. 
B) Bankruptcy refers to a situation in which a debtor who cannot pay debts transfers his assets to a trustee who acts on behalf of creditors. 
C) Bankruptcy law may allow a debtor to escape from having to pay his debts. 
D) All creditors of a bankrupt debtor are treated equally and will receive shares of the assets directly in proportion to how much is owed to each of them. 
E) A debtor who has been discharged from bankruptcy is released from his previous financial obligations.

Question 8

Provide an example of legislation that gives the federal government priority over all other creditors,including secured creditors.

Accepted Answer

Examples include the Income Ta

Question 9

Which of the following debts is not subject to a stay of proceedings even after a bankrupt has been discharged?

Accepted Answer

A) Past maintenance for dependents 
B) Family loans 
C) Judgment debts 
D) Ordinary debt 
E) Unsecured loans 
A) Past maintenance for dependents 
B) Family loans 
C) Judgment debts 
D) Ordinary debt 
E) Unsecured loans

Question 10

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 11

Explain the role of the trustee in bankruptcy proceedings.

Accepted Answer

The function of the trustee is

Which one of the following is false with respect to the Builders' Lien Act?

Which one of the following statements about bankruptcy is true?

When a security interest is taken on personal property in a PPSA jurisdiction,the borrower temporarily transfers title to lender.

What is the role of the Superintendent of Bankruptcy?

A continuing guarantee

Which one of the following statements about bankruptcy is false?

Provide an example of legislation that gives the federal government priority over all other creditors,including secured creditors.

Which of the following debts is not subject to a stay of proceedings even after a bankrupt has been discharged?

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

Explain the role of the trustee in bankruptcy proceedings.

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

Which one of the following is false with respect to the Builders' Lien Act?

Which one of the following statements about bankruptcy is true?

When a security interest is taken on personal property in a PPSA jurisdiction,the borrower temporarily transfers title to lender.

What is the role of the Superintendent of Bankruptcy?

A continuing guarantee

Which one of the following statements about bankruptcy is false?

Provide an example of legislation that gives the federal government priority over all other creditors,including secured creditors.

Which of the following debts is not subject to a stay of proceedings even after a bankrupt has been discharged?

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

Explain the role of the trustee in bankruptcy proceedings.

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