Question 1

Allison's bankruptcy on the debt owed by her father has what effect, if any?

Accepted Answer

A)   Allison's father is liable for the debt as he was when he initially signed the loan agreement.
B)   Allison's father is released in the same manner that Allison is released.
C)   Allison's father is released only if the bank failed to take sufficient steps to sue Allison and require payment of the loan before she filed for bankruptcy.
D)   Allison's father is released only if the bank failed to notify him of the bankruptcy in sufficient time to allow him to make a proper claim against Allison in bankruptcy court.
E)   Allison's father is released only if Allison failed to give him sufficient notice of her plans to file bankruptcy.F) A) and E)
G) A) and D)

Question 2

A secured interest is a[n] ________ lien.

Accepted Answer

A)   Consensual
B)   Statutory
C)   Judgment
D)   Approved
E)   EvaluatedF) A) and B)
G) None of the above

Question 3

Which of the following is NOT true of wage garnishment?

Accepted Answer

A)   Restrictions on garnishment under the Federal Consumer Credit Protection Act do not apply if the garnishment is for child support.
B)   States are not allowed to put dollar restrictions on garnishment; only the federal government can.
C)   Only one wage garnishment is permissible at a time.
D)   A debtor who makes below a certain amount of money will be exempt from garnishment.
E)   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.F) A) and B)
G) B) and C)

Question 4

A(n)  ________ is a claim to property by implication of law rather than statute.

Accepted Answer

A)   property holder's lien
B)   common law lien
C)   consummate lien
D)   possessory lien
E)   third-party lienF) All of the above
G) A) and E)

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

A voluntary action the debtor can make to pay debts is to transfer, or assign title of his or her property to a trustee or assignee who sells the property to pay creditors.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

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)   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.
D)   Nothing because the Federal Consumer Credit Protection Act does not address garnishment.
E)   Nothing because there is no Federal Consumer Credit Protection Act.F) A) and D)
G) B) and E)

Question 10

A third party in a guaranty contract is primarily liable to the creditor for the debtor's debt.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

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

Question 12

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

Accepted Answer

A)   Acknowledgement
B)   Consent
C)   Foreclosure
D)   Mortgage
E)   StatuteF) A) and B)
G) None of the above

Question 13

A(n)  ________ attaches by operation of state statutes to real property as a result of labor or materials provided for the benefit of such property.

Accepted Answer

A)   mechanic's lien
B)   artesian lien
C)   judicial lien
D)   real property lien
E)   construction lienF) D) and E)
G) All of the above

Question 14

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 ________?

Accepted Answer

A)   Garnishment
B)   Attachment
C)   Contempt
D)   Fixture
E)   Law enforcement lienF) A) and E)
G) C) and D)

Question 15

Joel, a creditor, had to foreclose on Georgian's loan. Joel had to sue Georgian in a local court. Joel received a judicial order that authorized a local law officer to seize and sell any of the Georgian's real or personal nonexempt property. What is the name of this order?

Accepted Answer

A)   A foreclosure order
B)   An attachment order
C)   A garnishment writ
D)   A writ of execution
E)   A property removal orderF) None of the above
G) All of the above

Question 16

If Heather is needing to know which laws to consult about wage garnishment, which law should she consult?

Accepted Answer

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

Question 17

[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 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?

Accepted Answer

A)   Good Windows would likely prevail because it was not the fault of Good Windows that the windows were installed improperly.
B)   Good Windows would likely lose because the windows are not working properly for Cecelia.
C)   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.
D)   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.
E)   Good Windows would likely be granted a lien for only 50% of the cost of the windows.F) B) and C)
G) A) and E)

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Henry is a contractor who is building a house for Leedy. Leedy finds out that ACE concrete, ANDY's Pools and Greenlawn Landscaping have all placed liens on her property. She finds out that Ace has a priority lien over ANDY's and Greenlaw. This type of priority lien over other types of liens is known as:

Accepted Answer

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

Question 20

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.

Accepted Answer

A)   Subrogation
B)   Reimbursement
C)   Contribution
D)   Recoupment
E)   SecurementF) All of the above
G) D) and E)

Exam 31: Other Creditors Remedies and Suretyship

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

Correct Answer
verified

A third party in a guaranty contract is primarily liable to the creditor for the debtor's debt.

Correct Answer
verified

A secured interest is a[n] ________ lien.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

If Heather is needing to know which laws to consult about wage garnishment, which law should she consult?

Correct Answer
verified

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 ________?

Correct Answer
verified

Allison's bankruptcy on the debt owed by her father has what effect, if any?

Correct Answer
verified

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

Correct Answer
verified

A(n) ________ is a claim to property by implication of law rather than statute.

Correct Answer
verified

Joel, a creditor, had to foreclose on Georgian's loan. Joel had to sue Georgian in a local court. Joel received a judicial order that authorized a local law officer to seize and sell any of the Georgian's real or personal nonexempt property. What is the name of this order?

Correct Answer
verified

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.

Correct Answer
verified

A voluntary action the debtor can make to pay debts is to transfer, or assign title of his or her property to a trustee or assignee who sells the property to pay creditors.

Correct Answer
verified

A(n) ________ attaches by operation of state statutes to real property as a result of labor or materials provided for the benefit of such property.

Correct Answer
verified

Which of the following is NOT true of wage garnishment?

Correct Answer
verified

Correct Answer
verified

Exam 31: Other Creditors Remedies and Suretyship

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

Correct AnswerverifiedShow Answer

A third party in a guaranty contract is primarily liable to the creditor for the debtor's debt.

Correct AnswerverifiedShow Answer

A secured interest is a[n] ________ lien.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If Heather is needing to know which laws to consult about wage garnishment, which law should she consult?

Correct AnswerverifiedShow Answer

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 ________?

Correct AnswerverifiedShow Answer

Allison's bankruptcy on the debt owed by her father has what effect, if any?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A(n) ________ is a claim to property by implication of law rather than statute.

Correct AnswerverifiedShow Answer

Joel, a creditor, had to foreclose on Georgian's loan. Joel had to sue Georgian in a local court. Joel received a judicial order that authorized a local law officer to seize and sell any of the Georgian's real or personal nonexempt property. What is the name of this order?

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

A voluntary action the debtor can make to pay debts is to transfer, or assign title of his or her property to a trustee or assignee who sells the property to pay creditors.

Correct AnswerverifiedShow Answer

A(n) ________ attaches by operation of state statutes to real property as a result of labor or materials provided for the benefit of such property.

Correct AnswerverifiedShow Answer

Which of the following is NOT true of wage garnishment?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified