Question 1

Financing statements are effective for how many years?

Accepted Answer

A) 10 
B) 15 
C) 1 
D) 5 
A) 10 
B) 15 
C) 1 
D) 5 D

Question 2

In a surety arrangement,a third person promises to be liable for the payment of another's debt.

Accepted Answer

A) True 
 B)False  True

Question 3

The primary purpose of the bankruptcy law is to get debtors to pay back what they owe to creditors.

Accepted Answer

A) True 
 B)False  False

Question 4

Unsecure credit requires collateral.

Accepted Answer

A) True 
 B)False

Question 5

Judgment-proof means that the creditor:

Accepted Answer

A) Will likely be able to collect. 
B) Has won many lawsuits. 
C) May not collect. 
D) Is a good litigator. 
A) Will likely be able to collect. 
B) Has won many lawsuits. 
C) May not collect. 
D) Is a good litigator.

Question 6

A creditor would rather be:

Accepted Answer

A) Unsecured. 
B) Totally funded. 
C) Secured. 
D) Well financed. 
A) Unsecured. 
B) Totally funded. 
C) Secured. 
D) Well financed.

Question 7

A financing statement is required if the creditor has physical possession of the collateral.

Accepted Answer

A) True 
 B)False

Question 8

To be a valid written security agreement,it must:

Accepted Answer

A) Clearly identify the collateral. 
B) Contain the debtor's promise to repay the creditor. 
C) Set forth the creditor's rights upon default. 
D) All of the above. 
A) Clearly identify the collateral. 
B) Contain the debtor's promise to repay the creditor. 
C) Set forth the creditor's rights upon default. 
D) All of the above.

Question 9

In a credit transaction,the borrower is the debtor and the lender is the creditor.

Accepted Answer

A) True 
 B)False

Question 10

The owner-debtor is the mortgagee.

Accepted Answer

A) True 
 B)False

Question 11

A mortgage is a three-party instrument.

Accepted Answer

A) True 
 B)False

Question 12

In In re Greenbelt Cooperative the court found that Raymond had sufficiently identified the actual debtor.

Accepted Answer

A) True 
 B)False

Question 13

Contractors and laborers that provide time and materials are protected in their investments through:

Accepted Answer

A) Mechanic's lien. 
B) Material person's lien. 
C) Both of the above. 
D) None of the above. 
A) Mechanic's lien. 
B) Material person's lien. 
C) Both of the above. 
D) None of the above.

Question 14

Security means collateral.

Accepted Answer

A) True 
 B)False

Question 15

In a guaranty arrangement,who agrees to pay the debt of the principal debtor?

Accepted Answer

A) The principal debtor. 
B) The guarantor. 
C) The codebtor. 
D) All of the above. 
A) The principal debtor. 
B) The guarantor. 
C) The codebtor. 
D) All of the above.

Question 16

An improperly recorded document is not effective against:

Accepted Answer

A) Subsequent purchasers of the real property. 
B) Other mortgagees or lienholders who have no notice of the prior mortgage. 
C) Both of the above. 
D) None of the above. 
A) Subsequent purchasers of the real property. 
B) Other mortgagees or lienholders who have no notice of the prior mortgage. 
C) Both of the above. 
D) None of the above.

Question 17

Bankruptcy judges are appointed by the president for how many years?

Accepted Answer

A) Life 
B) 16 
C) 14 
D) 10 
A) Life 
B) 16 
C) 14 
D) 10

Question 18

In a credit transaction,the creditor will usually take a security interest through:

Accepted Answer

A) The mortgage note. 
B) Collateral 
C) A high interest rate. 
D) All of the above. 
A) The mortgage note. 
B) Collateral 
C) A high interest rate. 
D) All of the above.

Question 19

Security interests in personal property are governed by which article of the UCC?

Accepted Answer

A) 2 
B) 4 
C) 6 
D) 9 
A) 2 
B) 4 
C) 6 
D) 9

Question 20

In GMAC v.Daniels Seymour was found not liable for John's car loan.

Accepted Answer

A) True 
 B)False

Financing statements are effective for how many years?

In a surety arrangement,a third person promises to be liable for the payment of another's debt.

The primary purpose of the bankruptcy law is to get debtors to pay back what they owe to creditors.

Unsecure credit requires collateral.

Judgment-proof means that the creditor:

A creditor would rather be:

A financing statement is required if the creditor has physical possession of the collateral.

To be a valid written security agreement,it must:

In a credit transaction,the borrower is the debtor and the lender is the creditor.

The owner-debtor is the mortgagee.

A mortgage is a three-party instrument.

In In re Greenbelt Cooperative the court found that Raymond had sufficiently identified the actual debtor.

Contractors and laborers that provide time and materials are protected in their investments through:

Security means collateral.

In a guaranty arrangement,who agrees to pay the debt of the principal debtor?

An improperly recorded document is not effective against:

Bankruptcy judges are appointed by the president for how many years?

In a credit transaction,the creditor will usually take a security interest through:

Security interests in personal property are governed by which article of the UCC?

In GMAC v.Daniels Seymour was found not liable for John's car loan.

The Nature of Law and Critical Legal Thinking

The American Court System

Civil Litigation and Alternative Dispute Resolution

Criminal Law and Ethics

Constitutional Law and Freedoms

Torts and Product Liability

Contracts and E-Commerce

Real and Personal Property

Family Law

Wills,Trusts,and Estates

Business Organizations

Agency, Employment, and Equal Opportunity Law

Intellectual Property and Internet Law

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Exam 13: Credit, Suretyship, and Bankruptcy

Financing statements are effective for how many years?

In a surety arrangement,a third person promises to be liable for the payment of another's debt.

The primary purpose of the bankruptcy law is to get debtors to pay back what they owe to creditors.

Unsecure credit requires collateral.

Judgment-proof means that the creditor:

A creditor would rather be:

A financing statement is required if the creditor has physical possession of the collateral.

To be a valid written security agreement,it must:

In a credit transaction,the borrower is the debtor and the lender is the creditor.

The owner-debtor is the mortgagee.

A mortgage is a three-party instrument.

In In re Greenbelt Cooperative the court found that Raymond had sufficiently identified the actual debtor.

Contractors and laborers that provide time and materials are protected in their investments through:

Security means collateral.

In a guaranty arrangement,who agrees to pay the debt of the principal debtor?

An improperly recorded document is not effective against:

Bankruptcy judges are appointed by the president for how many years?

In a credit transaction,the creditor will usually take a security interest through:

Security interests in personal property are governed by which article of the UCC?

In GMAC v.Daniels Seymour was found not liable for John's car loan.

The Nature of Law and Critical Legal Thinking

The American Court System

Civil Litigation and Alternative Dispute Resolution

Criminal Law and Ethics

Constitutional Law and Freedoms

Torts and Product Liability

Contracts and E-Commerce

Real and Personal Property

Family Law

Wills,Trusts,and Estates

Business Organizations

Agency, Employment, and Equal Opportunity Law

Intellectual Property and Internet Law

Administrative Law, Consumer, Investor, and Environmental Protection

Concepts in Law

Filters