Deck 31: Other Creditors Remedies and Suretyship

Question 1

A guaranty is the same thing as a suretyship.

Answer 1

False

Question 2

An assignment for the benefit of creditors is an involuntary proceeding instituted generally by a bankruptcy court.

Answer 2

False

Question 3

Creating a mechanic's lien on property automatically ensures that the contractor who filed the lien will receive money.

Answer 3

False

Question 4

A person who holds a lien is called a[n] ________.

A)Agreement holder
B)Property acknowledgement holder
C)Consenting agent
D)Charger
E)Lienholder

Question 5

If a mechanic builds a music room on a house,the mechanic can create a lien on the piano kept in the music room.

Question 6

A secured interest is a[n] ________ lien.

A)Judgment
B)Statutory
C)Evaluated
D)Consensual
E)Approved

Question 7

When a creditor,through legal action,seizes a debtor's property to satisfy the debt,the creditor has a judicial lien.

Question 8

When must a lienholder's claim on a property be settled?

A)Before property or proceeds are distributed to other creditors
B)After proceeds are distributed to other creditors
C)It depends upon the type of lien
D)After property is distributed to other creditors
E)After both all property and proceeds are distributed to other creditors

Question 9

A writ of execution is the same thing as attachment.

Question 10

The term "super-priority liens" applies to both artisan's and mechanic's liens.

Question 11

Which of the following is false regarding the process of attachment?

A)The court may attach the debtor's personal or real property.
B)A creditor typically seeks an attachment as a prejudgment remedy in a legal action.
C)The court may attach the debtor's checking and savings accounts.
D)After attachment is complete,the creditor holds the property until judgment.
E)The creditor must file a lawsuit prior to seeking an attachment.

Question 12

A statutory lien is a lien created solely through statute,regardless of whether the debtor wishes the lien to be created.

Question 13

At any time before the sale of real property subject to a mortgage,the debtor may recover the property by paying the debt along with additional costs and interest.

Question 14

A composition agreement is a contract between creditors and a debtor in which the creditors agree to accept a lesser amount to satisfy the debts and discharge the remaining debt.

Question 15

A surety is secondarily liable to the creditor for a debtor's debt.

Question 16

Which of the following is true regarding types of liens?

A)Types of liens include judgment,statutory,approved,and evaluated but not consensual.
B)Types of liens include consensual,statutory,and judgment,but not approved or evaluated.
C)Types of liens include consensual and statutory,but not judgment,approved,or evaluated.
D)Types of liens include consensual,statutory,judgment,approved,and evaluated.
E)Types of liens include consensual and judgment,but not statutory,approved,or evaluated.

Question 17

A mechanic's lien must be on personal property,not real property.

Question 18

The mortgagee can seek a deficiency judgment if proceeds of the sale of real property do not cover the debt.

Question 19

Regardless of whether the artisan retains the property,an artisan's lien remains in effect.

Question 20

If a creditor brings legal action against a surety or guarantor,the surety or guarantor has no legal defenses available.

Question 21

Which of the following is an example of circumstances under which a mechanic's lien might not be enforced?

A)If the lien is on real property instead of personal property.
B)If a contractor has been paid but subcontractors have not.
C)If a contractor performs deficient work.
D)If the homeowner does not consent to the lien.
E)There are no circumstances under which a mechanic's lien is not enforced.

Question 22

Kyla hires a contractor to remodel her home.She does not agree to a lien or sign any documentation giving the contractor a lien.He claims a lien on the house anyway.What type of lien does he have?

A)Approved
B)Judgment
C)Evaluated
D)Statutory
E)Consensual

Question 23

If you take your expensive watch to a jeweler for repairs and after costly repairs are made you discover you cannot pay,what type of lien,if any,may be placed on the watch?

A)An artisan's lien
B)A mechanic's lien
C)A non-consensual lien
D)The jeweler cannot put a lien on the property
E)A consensual lien

Question 24

Best Bank lends $3,000 to Juan to purchase a car and Juan signs a loan agreement granting Best Bank a lien on the car.This is an example of what type of lien?

A)Judgment
B)Consensual
C)Evaluated
D)Approved
E)Statutory

Question 25

If you take your expensive watch to a jeweler for repairs and after costly repairs are made you discover you cannot pay,what options are available to the jeweler?

A)To keep and eventually sell the watch unless debts are repaid
B)To return the watch to you and seek an artisan's lien
C)To keep the watch until debt is paid,but never to sell the watch.
D)To return the watch to you and seek a mechanic's lien
E)To return the watch and sue as a secured creditor

Question 26

By which of the following is a mechanic's lien created?

A)Acknowledgement
B)Mortgage
C)Consent
D)Statute
E)Foreclosure

Question 27

Which of the following is NOT a requirement if a contractor decides to foreclose on a lien?

A)Consent of the homeowner to the original lien.
B)A timely foreclosure sale within state deadlines.
C)Notice of foreclosure to the homeowner.
D)Advertisement of the foreclosure sale.
E)Filing of a foreclosure action within a designated period of time after filing the lien.

Question 28

Which of the following was the result in Inre Enron Corp. ,the bankruptcy case in the text involving whether Enterprise Products Operating L.P.was entitled to a lien for unpaid invoices in connection with engineering services provided to Enron?

A)The court found that a lien was foreclosed because the bankruptcy trustee had priority.
B)The court found that a lien was available because the claimant qualified as a materialman engaged in manufacturing an article for the debtor thereby satisfying applicable law.
C)The court found that a lien was available because under principles of equity,it would be unjust to deny the claimant a recovery.
D)The court found that a lien was foreclosed because the claimant did not qualify as a mechanic,artisan,or materialman.
E)The court found that a lien was foreclosed because the transaction did not involve the manufacturing or repairing of an "article" or "building" as required under applicable law.

Question 29

A creditor has a secured interest in your artwork and an artist has a lien on your artwork.Who has priority in obtaining the artwork or the proceeds from the sale of the artwork?

A)The property must be sold and the artist and creditor must split the proceeds 50-50.
B)The creditor with an unperfected secured interest will have priority over the artist.
C)The artist will always have priority over the creditor.
D)The creditor with a perfected secured interest will have priority over the artist.
E)The creditor will always have priority over the artist.

Question 30

Which of the following is true regarding wage garnishment?

A)Both federal and state laws govern wage garnishment.
B)Garnishment is governed by contractual provisions not by state law,federal law,or local ordinance.
C)Wage garnishment is governed only by state law.
D)Wage garnishment is governed only by federal law.
E)Wage garnishment is governed only by local ordinance.

Question 31

When a person hires a worker to make improvements on real property but is later unable to pay the worker,the worker can create a[n] lien on the person's improved real property.

A)Approved
B)Acknowledged
C)Mechanic's
D)Improvement
E)Constructive

Question 32

Which of the following is true regarding recovery under a mechanic's lien?

A)Even if a contractor performs deficient work,a mechanic's lien may be enforced.
B)Any excess funds from a sale to pay the lien go to the debtor.
C)There is no requirement that a contractor give a debtor notice of a foreclosure.
D)Filing a lien automatically ensures that a contractor will receive some money.
E)Federal law governs enforcement of mechanic's liens.

Question 33

What process does a contractor usually have to go through to create a lien?

A)The contractor must file a lawsuit and ask the court to impose a judicial lien.
B)The homeowner must voluntarily agree in a written pre-construction contract to allow the contractor to create a lien.
C)The contractor must file a written notice of the lien on the property with the county clerk within a designated period of time.
D)The lien is created automatically be operation of law.There is no process.
E)The contractor must get consent of the homeowner to create a lien.

Question 34

Which of the following was the result in Bend Tarp and Liner,Inc. ,v.Bundy,the case in the text in which the plaintiff filed a lien and instituted foreclosure proceedings in connection with a dispute involving payment for a pond liner following the defendant's refusal to pay based on an alleged tear in the liner?

A)That the plaintiff properly installed the liner but was not entitled to foreclose because a section of the wall of the pond collapsed and the liner did not serve the purpose for which it was requested.
B)That the plaintiff installed a defective liner and was not entitled to foreclose.
C)That although the plaintiff had installed a defective liner,the plaintiff was entitled to foreclose because the defendant did not object to the lien within 10 days.
D)That although the plaintiff had installed a defective liner,the plaintiff was entitled to foreclose because the defendant did not object to the lien within 30 days.
E)That the plaintiff properly installed the liner and was entitled to foreclose.

Question 35

A lien that has priority over other types of liens is known as which of the following?

A)A top lien
B)A priority lien
C)An excess lien
D)A novation lien
E)A super-priority lien

Question 36

Which of the following was the result on appeal in the case nugget Bates County Redi-Mix Inc.v.Windler,in which a supplier of concrete sought a mechanic's lien for the cost of concrete although the concrete had to be removed and replaced based upon improper installation by a subcontractor unconnected with the plaintiff?

A)The concrete supplier was granted a mechanic's lien for only 75% of the cost of the concrete.
B)The concrete supplier was granted a mechanic's lien for only 25% of the cost of the concrete.
C)The concrete supplier lost because the concrete had to be replaced.
D)The concrete supplier was granted a mechanic's lien for only 50% of the cost of the concrete.
E)The concrete supplier was granted a mechanic's lien largely because it was not responsible for the improper installation.

Question 37

Which of the following was the result in the Case Opener in which the plaintiffs claimed that a mortgage foreclosure was wrongful because the foreclosure proceedings did not reveal the true secured party who had purchased the plaintiffs' loan from the original lender?

A)That the foreclosure was wrongful because the loan should never have been transferred in the first place.
B)That while the identity of the secured party should have been disclosed initially in foreclosure documents,the plaintiffs were not prejudiced by that omission;and the correct secured party could be substituted in the proceedings.
C)That the foreclosure was wrongful because the proper secured party was not identified.
D)That the defendant rightfully foreclosed because the party who instituted foreclosure proceedings had the right to service the loan.
E)That the defendant rightfully foreclosed because the plaintiffs were in default on the loan and had no right to know the identity of the true secured party.

Question 38

A[n] ________ lien is a lien that is created solely through statute,regardless of whether the debtor wishes the lien to be created.

A)Approved
B)Statutory
C)Judgment
D)Evaluated
E)Consensual

Question 39

An artisan's lien is a claim on what types of property?

A)Real,personal,and movable
B)Personal,but not movable or real
C)Movable and real,but not personal
D)Movable but not personal or real
E)Personal and real,but not movable

Question 40

Why is it important for a creditor to perfect a secured interest if there is the potential that a lien will subsequently be placed on the same property?

A)Because otherwise the creditor will not be able to make a claim if the lien holder makes a claim.
B)Because a lien creditor will have priority over an unsecured interest.
C)Because the lien creditor will completely take over the secured interest.
D)Because the secured interest will be lost if a lien is placed on the property.
E)Because otherwise the creditor has to split the proceeds of property with the lien holder.

Question 41

A creditor who Pele borrowed money from went to court and asked for the court to bring Pele's checking account under court control until Pele had repaid the money due.This is an example of ________.

A)Attachment
B)Garnishment
C)Law enforcement lien
D)Fixture
E)Contempt

Question 42

What is the amount of the homestead exemption?

A)$10,000
B)$100,000
C)$25,000
D)$50,000
E)It varies from state to state

Question 43

A judicial order authorizing a local law officer to seize and sell any of the debtor's real or personal nonexempt property is known as which of the following?

A)A writ of attachment
B)A writ of foreclosure
C)A writ of execution
D)A writ of garnishment
E)A writ of mortgage

Question 44

Which of the following is NOT true when a judge orders a writ of execution?

A)If a debtor refuses to designate property for seizure and sale,the law officer can take any non-exempt property.
B)Some states allow a debtor to designate which property will be seized under the writ of execution.
C)The writ of execution allows seizure of a debtor's property only after the entry of judgment in the underlying case.
D)A local law officer can seize and sell a debtor's non-exempt real or personal property.
E)Any and all of a debtor's property can be seized to satisfy an obligation.

Question 45

A creditor has what type of lien when,through legal action,the creditor seizes a debtor's property to satisfy a debt?

A)Mechanic's
B)True
C)Judicial
D)Artisan's
E)Contempt

Question 46

What is the purpose of a creditor seeking a court order for attachment?

A)To protect secured creditors
B)To garnish a debtor's wages
C)To obtain court permission to immediately allow a creditor to seize a debtor's property
D)To ensure a debtor doesn't sell or hide property to try to avoid paying debt
E)Creditors cannot seek a court order for attachment

Question 47

Which of the following was the result in Cameron v.Ewing,the case in the text involving whether monthly proceeds from a reverse mortgage were subject to garnishment?

A)The court ruled that the payments were not subject to garnishment because the payments did not constitute earned income.
B)The court ruled that the payments were not subject to garnishment because the defendant's estate was ultimately liable to repay the monies received to the extent repayment could be generated from sale of the property.
C)The court ruled that the payments were subject to garnishment based on public policy and also that the claimant was entitled to the full amount of the monthly payments.
D)The court ruled that the payments were not subject to garnishment because it would be against public policy to find as such.
E)The court ruled that the payments were subject to garnishment because the payments constituted debts due the defendant.

Question 48

Which of the following is NOT true of wage garnishment?

A)Only one wage garnishment is permissible at a time.
B)A debtor can stop garnishment by filing a notice with the court that will lead to a hearing in which the judge determines if the wages are exempt.
C)States are not allowed to put dollar restrictions on garnishment;only the federal government can.
D)A debtor who makes below a certain amount of money will be exempt from garnishment.
E)Restrictions on garnishment under the Federal Consumer Credit Protection Act do not apply if the garnishment is for child support.

Question 49

What if several creditors wish to garnish a debtor's wages?

A)Only one garnishment will be permitted at a time,and the creditor with the largest claim will usually receive the garnished wages.
B)Only one garnishment will be permitted at a time,and the creditor with the smallest claim will usually receive the garnished wages.
C)The court will collect the garnished wages and divide the money up amongst the creditors.
D)Only one garnishment will be permitted at a time,and the first creditor to file will usually receive the garnished wages.
E)All of the creditors can take a portion of the wages.

Question 50

Which of the following is NOT generally part of the procedure a creditor must follow before attaching?

A)Posting a bond with the court covering costs associated with the attachment
B)Filing a lawsuit against a debtor alleging a debt is owed.
C)Proving that the creditor has a secured interest in the property
D)Listing the grounds for the attachment application
E)Providing a legal basis at a court hearing for the attachment

Question 51

Matilda did not pay Tomas for services Tomas provided.Tomas went to court and sued to have Matilda's wages garnished.What type of lien was Tomas seeking?

A)Judicial
B)Mechanic's
C)Contempt
D)True
E)Artisan's

Question 52

A debtor is permitted to retain all or a portion of the family home so that the family will retain some form of shelter through which of the following exemptions?

A)Personal estate
B)Shelter
C)Real
D)Real estate
E)Homestead

Question 53

Which of the following factors would NOT be a factor in determining the size of the homestead exemption in California?

A)Whether the homeowner was over 65.
B)Whether the homeowner was married.
C)Whether the homeowner was disabled.
D)Whether the homeowner was single.
E)Whether the homeowner had purchased his home more than 10 years ago.

Question 54

After judgment is entered against Kylie in a suit for nonpayment by a creditor,the judge orders a local sheriff to seize and sell some of Kylie's valuable jewelry.This is an example of a ________.

A)Writ of execution
B)Order of attachment
C)Decree of sale
D)Writ of discharge
E)Decree of seizure

Question 55

How much may a debtor's wages be garnished,according to the Federal Consumer Credit Protection Act?

A)That a debtor must be able to keep the 75 percent of his or her weekly net income.
B)That a debtor must be able to keep 30 times the federal minimum wage.
C)Nothing because the Federal Consumer Credit Protection Act does not address garnishment.
D)Nothing because there is no Federal Consumer Credit Protection Act.
E)That a debtor must be able to keep the greater of the following two options: 75 percent of his or her weekly net income or 30 times the federal minimum wage.

Question 56

When can a creditor seek a writ of execution?

A)Only if property has been attached for six months.
B)After attachment but before judgment.
C)Only if the creditor is a secured creditor.
D)After entry of judgment in the underlying case.
E)Before entry of judgment in the underlying case.

Question 57

Which of the following statements accurately describes judicial liens?

A)Writ of execution is a type of judicial lien,but garnishments and attachments are not.
B)Attachments,writ of execution,and garnishment are types of judicial liens.
C)Garnishments and writ of execution are types of judicial liens,but attachments are not.
D)Attachments are a type of judicial lien,but garnishments and writ of execution are not.
E)Writ of execution and attachments are types of judicial liens,but garnishments are not.

Question 58

What happens if an exemption filed in court by a debtor is limited to a certain amount of money?

A)The value of the exempt property is determined based on the original purchase price.
B)The debtor will lose his entire exemption if the property is valued over the designated amount.
C)An appraiser assesses the value of the property claimed by the debtor as an exemption.
D)The creditor has the burden of proving the value of the exempt property.
E)The debtor has the burden of proving the value of the exempt property.

Question 59

Which of the following is a court-ordered judgment permitting a local court officer,such as a sheriff,to seize a debtor's property before the entry of a final judgment in an underlying case?

A)Fixture
B)Law enforcement lien
C)Attachment
D)Garnishment
E)Contempt

Question 60

What happens if a debtor is successful in a legal action initiated by a creditor after a creditor attached property?

A)The debtor can recover damages from the creditor for losses suffered while deprived of property and,if the property was wrongfully attached,may recover punitive damages.
B)The creditor will be permitted to sell the debtor's property to satisfy the debt.
C)The debtor's property is returned,but no damages may be obtained by either party.
D)The debtor can recover punitive damages only.
E)The debtor can recover actual damages only,even if the property was wrongfully attached.

Question 61

If a surety or guarantor pays the debtor's obligation to the creditor,the surety or guarantor has a right to ,which means that the surety or guarantor is entitled to all the rights that the creditor had against the debtor.

A)Securement
B)Subrogation
C)Recoupment
D)Reimbursement
E)Contribution

Question 62

[Defective Windows] Cecelia hired a contractor,Paul,to put new windows in her home that she purchased herself from Good Windows.Unfortunately,Paul made a mess of the windows.While the windows were initially in good shape,Paul cracked some,scratched others,and did not get the windows properly fitted into their frames.Cecelia received a bill for the windows from Good Windows,but she refused to pay.Cecelia was told that Good Windows would file a lien,but she believed that there was no basis upon which a lien would be granted.Paul,who refused responsibility for any problems,also filed a lien after Cecelia refused to pay him.
What type of lien would Paul likely seek?

A)Artisan's
B)Construction
C)Mechanic's
D)Judicial
E)Removal

Question 63

[Bad Hair Day] Tara started a new hair salon and leased space for the salon from Marisa.Unfortunately,Tara's styling caused some problems for customers.One customer's hair turned green from Tara's bleaching process,and Tara burned another customer with a curling iron.Not surprisingly,Tara had little business and was unable to pay her lease payments as they came due.Marisa filed a lawsuit against Tara and obtained a judgment against Tara for $7,000 in past due rent.Marisa asked for a court-ordered judgment permitting the sheriff to seize and sell Tara's equipment,including her hair-dryers,pedicure chair,nail polish,and other items.The judge refused her request.Marisa did,however,obtain an order allowing her to seize $3,000 held in Tara's bank account to partially satisfy the debt.Marisa also discovered that Tara had,for her personal use,a wide-screen television set worth approximately $1,000 which was being held by Franklin,a television repairer,for the costs of repair.Marisa asked him to turn over the television because her lien had priority,but Franklin refused.
Marisa was allowed to seize money from Tara's bank account with what type of order?

A)Relinquishment
B)Consolidation
C)Garnishment
D)Attachment
E)Foreclosure

Question 64

Which of the following is a claim to property in which the lienholder has the right to be in possession of the property until the debt is paid?

A)Possessory lien
B)Common law lien
C)Consummate lien
D)Attorney's lien
E)Denial lien

Question 65

[Rough Start] Allison,who just graduated from college,wanted to buy a new car.However,she did not have much of a credit history,and the bank would not give her a loan unless she had a cosigner who agreed to be liable on the loan along with Allison.Allison's father cosigned with Allison on her loan at the bank.Allison also wanted to start a real estate business.She needed funds with which to do so.Her boyfriend,Sean,promised the bank,in writing that he would pay Allison's start-up loan for the real estate business if Allison did not do so.Unfortunately,Allison did not make any money in the real estate business.She went bankrupt along with Sean,who had been acting as her receptionist.
The agreement entered into between Allison's father and the bank is called what?

A)A guaranty
B)An acknowledged agreement
C)An executory promise
D)A suretyship
E)A certified agreement

Question 66

Which of the following is the lien of a judgment that arises when a motion for a new trial has been denied?

A)Attorney's lien
B)Possessory lien
C)Consummate lien
D)Common law lien
E)Denial lien

Question 67

What is the most likely result if Good Windows proceeds with attempting to obtain a lien,assuming the court follows the reasoning of Bates County Redi-Mix Inc.v.Windler discussed in the text?

A)Good Windows would likely lose only because Paul is unwilling to cover the cost of proper installation,and Cecelia should not be charged for windows when she has no remedy against anyone.
B)Good Windows would likely lose because the windows are not working properly for Cecelia.
C)Good Windows would likely lose unless Cecelia can establish that Good Windows notified her by certified mail that she would have to pay for the windows even if they were improperly installed.
D)Good Windows would likely prevail because it was not the fault of Good Windows that the windows were installed improperly.
E)Good Windows would likely be granted a lien for only 50% of the cost of the windows.

Question 68

If Paul proceeds with attempting to obtain and enforce a lien,what is the most likely result?

A)Paul will lose because he performed deficient work.
B)Paul will win if he proves that he had never had a problem installing windows before.
C)Paul will receive only half of his bill because he performed deficient work.
D)Paul will lose unless he already paid Good Windows for the windows,in which case he would win.
E)Paul will win unless Cecelia has a writing signed by him in which he agrees that he will not seek a lien in the case of deficient work.

Question 69

What is the term for what Marisa requested when she requested that the judge have law enforcement officers seize and sell Tara's equipment?

A)Writ of garnishment
B)Order of law
C)Writ of debt satisfaction
D)Writ of execution
E)Order of compliance

Question 70

An order that permits the creditor to recover property beyond foreclosed property is what kind of judgment?

A)A reverted judgment
B)A total judgment
C)A composition judgment
D)A deficiency judgment
E)A remainder judgment

Question 71

Which of the following is true regarding the type of lien,if any,that Good Windows is entitled to obtain prior to going to court,assuming the court follows the reasoning of Bates County Redi-Mix Inc.v.Windler?

A)Good Windows is not entitled to any lien.
B)Good Windows is entitled to a removal lien.
C)Good Windows is entitled to a judicial lien.
D)Good Windows is entitled to a mechanic's lien.
E)Good Windows is entitled to an artisan's lien.

Question 72

Which of the following may occur when a third party agrees to be liable for a debtor's loan either primarily or secondarily?

A)A certified agreement or a suretyship,but not a guarantee
B)Either a suretyship or a guaranty,but not a certified agreement
C)A suretyship,a guaranty,or a certified agreement
D)A certified agreement or a guaranty,but not a suretyship
E)A guarantee but not a certified agreement or a suretyship

Question 73

A ________ is a contract between a creditor and a third party who agrees to pay another person's debt and is primarily liable for the debt whereas in a ________,a third party,must pay a debt only after the debtor has defaulted.

A)Certified agreement;suretyship
B)Guaranty;suretyship
C)Suretyship;guaranty
D)Guaranty;certified agreement
E)Certified agreement;guaranty

Question 74

A claim to property by implication of law rather than statute is which kind of lien?

A)Common law lien
B)Broker's lien
C)Consummate lien
D)Possessory lien
E)Vendor's lien

Question 75

Which of the following is true if a debtor engaged in fraud in order to convince a surety or guarantor to enter into a contract with a third party?

A)The surety is released from liability,but the guarantor is not.
B)Because the third party is innocent,neither the surety nor the guarantor is released from liability.
C)Both the guarantor and the surety will likely be released from liability on interest due on the contract,but not for the principle amount.
D)The guarantor is released from liability,but the surety is not.
E)Both the guarantor and the surety will likely be released from liability.

Question 76

Which of the following is the most likely reason for the judge's refusal to allow the sheriff to seize Tara's equipment?

A)Marisa had a duty to exhaust all other avenues of recovery before seizing those items.
B)It was exempt as tools and instruments needed to carry on a trade.
C)It would have been worth more than that owed to Marisa.
D)She incorrectly asked the sheriff to involve law enforcement and should have seized the goods herself.
E)It was not listed as assets in the original complaint filed with the court.

Question 77

Which of the following is a transfer or assignment by a debtor of title to property to a trustee or an assignee who sells the property with the proceeds of the sale going to pay creditors on a pro rata basis?

A)An assignment for the benefit of creditors
B)A composition agreement
C)A pro rata agreement
D)A sale and transfer agreement
E)A termination agreement

Question 78

A claim on property either created by a sales contract or imposed by a court in the interest of fairness is called a[n] ________ lien.

A)Common law
B)Possessory
C)Equitable
D)Broker's
E)Consummate

Question 79

If a guarantor's oral promise to pay a debt is not in writing,which of the following is true?

A)The guarantor may raise the statute-of-frauds defense.
B)The guarantor may raise the UCC defense if a sale of a good is involved;otherwise,no defenses are available to the debtor.
C)There are no defenses available because there is no legal requirement that a guarantor's oral promise be in writing.
D)The guarantor may raise the consolidation defense.
E)The guarantor may raise the absence of writing defense.

Question 80

What is the most likely result of the dispute between Franklin and Marisa regarding the television set,assuming no exemption applies?

A)Franklin and Marisa will be required to sell the television and split the proceeds 50-50.
B)Marisa will win the dispute because a judicial lien is always enforced before any other type of lien,and she will be able to sell the television for amounts owed to her by Tara without sharing any of the funds with Franklin.
C)Franklin and Marisa will be required to sell the television with Franklin,the holder of an artisan's lien,receiving only 25%,and Marisa receiving the rest.
D)Franklin will win the dispute because he has rights to a super-priority lien,and he will be able to recover amounts to which he is due from the sale of the television before Marisa is entitled to any funds.
E)Franklin and Marisa will be required to sell the television and split the proceeds based upon their percentage of debt.