Question 1

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?

Accepted Answer

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 agreementF) A) and B)
G) B) and D)

Question 2

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

Accepted Answer

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.F) C) and D)
G) A) and B)

Question 3

[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?

Accepted Answer

A)  Relinquishment
B)  Consolidation
C)  Garnishment
D)  Attachment
E)  ForeclosureF) C) and D)
G) B) and D)

Question 4

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

Accepted Answer

A)  Approved
B)  Statutory
C)  Judgment
D)  Evaluated
E)  ConsensualF) B) and E)
G) A) and B)

Question 5

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)  Attachment
B)  Garnishment
C)  Law enforcement lien
D)  Fixture
E)  ContemptF) A) and B)
G) C) and E)

Question 6

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.

Accepted Answer

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

Question 7

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?

Accepted Answer

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.F) A) and B)
G) A) and C)

Question 8

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?

Accepted Answer

A)  Judgment
B)  Consensual
C)  Evaluated
D)  Approved
E)  StatutoryF) B) and C)
G) A) and B)

Question 9

When can a creditor seek a writ of execution?

Accepted Answer

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.F) A) and B)
G) All of the above

Question 10

JuTara owns a small carwash business.Due to severe dry weather,the price of water increased,and she had to increase her prices,and many customers stopped coming.JuTara had several creditors.She told them that she does not want to sell her property and that she would like to stay in business,but that she is considering bankruptcy unless her debts can be reduced.By what type of voluntary agreement would creditors receive only a percentage of the amount owed to them? What are the principles involving such an agreement,and why would a creditor consider such an agreement?

Accepted Answer

JuTara's creditors might consider a comp...

Question 11

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

Accepted Answer

A)  A reverted judgment
B)  A total judgment
C)  A composition judgment
D)  A deficiency judgment
E)  A remainder judgmentF) All of the above
G) A) and C)

Question 12

A secured interest is a[n] ________ lien.

Accepted Answer

A)  Judgment
B)  Statutory
C)  Evaluated
D)  Consensual
E)  ApprovedF) A) and E)
G) B) and E)

Question 13

Discuss why a creditor would want to attach property as well as whether attachment is more often sought by secured or unsecured creditors and why.

Accepted Answer

An attachment can help ensure that a deb...

Question 14

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

Accepted Answer

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

Question 15

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.

Accepted Answer

A)  Approved
B)  Acknowledged
C)  Mechanic's
D)  Improvement
E)  ConstructiveF) A) and D)
G) B) and E)

Question 16

Which of the following is NOT true of wage garnishment?

Accepted Answer

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.F) C) and D)
G) A) and D)

Question 17

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.

Accepted Answer

A)  Common law
B)  Possessory
C)  Equitable
D)  Broker's
E)  ConsummateF) A) and B)
G) B) and D)

Question 18

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

Accepted Answer

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.F) B) and D)
G) A) and E)

Question 19

Which of the following is true regarding types of liens?

Accepted Answer

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.F) B) and D)
G) A) and E)

Question 20

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?

Accepted Answer

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.F) A) and D)
G) A) and C)

Exam 31: Other Creditors Remedies and Suretyship

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

Correct Answer
verified

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.

Correct Answer
verified

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

Correct Answer
verified

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.

Correct Answer
verified

A secured interest is a[n] ________ lien.

Correct Answer
verified

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

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

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?

Correct Answer
verified

Discuss why a creditor would want to attach property as well as whether attachment is more often sought by secured or unsecured creditors and why.

Correct Answer
verified
An attachment can help ensure that a deb...
View Answer

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

Correct Answer
verified

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?

Correct Answer
verified

When can a creditor seek a writ of execution?

Correct Answer
verified

Correct Answer
verified

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?

Correct Answer
verified

Correct Answer
verified
JuTara's creditors might consider a comp...
View Answer

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

Correct Answer
verified

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?

Correct Answer
verified

Which of the following is true regarding types of liens?

Correct Answer
verified

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.

Correct Answer
verified

Which of the following is NOT true of wage garnishment?

Correct Answer
verified

Exam 31: Other Creditors Remedies and Suretyship

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

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

A secured interest is a[n] ________ lien.

Correct AnswerverifiedShow Answer

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

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

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?

Correct AnswerverifiedShow Answer

Discuss why a creditor would want to attach property as well as whether attachment is more often sought by secured or unsecured creditors and why.

Correct AnswerverifiedAn attachment can help ensure that a deb...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

When can a creditor seek a writ of execution?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedJuTara's creditors might consider a comp...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

Which of the following is true regarding types of liens?

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

Which of the following is NOT true of wage garnishment?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

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.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
An attachment can help ensure that a deb...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
JuTara's creditors might consider a comp...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified