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Creditors Rights - 1

Page history last edited by abogado 12 years, 1 month ago

Law 19 Quizzes

 

 

1. Jen has a claim against Kevin’s property that must be satisfied before the property is available to satisfy the claims of other creditors. This is

 

a. a lien.

b. a violation of most state laws.

c. a writ of attachment.

d. a writ of execution.

 

2. Suha performs a contract with Tyler to add a second story addition to Tyler’s house, but Tyler does not pay. In most states, Suha can create a lien and place it on Tyler’s property by filing

 

a. an order of garnishment.

b. a writ of attachment.

c. a writ of execution.

d. a written notice of lien.

 

 

 

3. Pruit performs a contract with Quint to reshingle the roof on Quint’s house, but Quint does not pay. Pruit notifies Quint that Pruit will foreclose on the house and sell it to satisfy the debt. This is

 

a. a judicial lien.

b. a mechanic’s lien.

c. an artisan’s lien.

d. a violation of most state laws.

 

 

 

4. Loni delivers her Mazda to be repaired at Nile’s Body Shop. Loni agrees to pay cash. Nile performs, but Loni does not pay. Nile tells Loni that he will keep the car until she pays. This is

 

a. a judicial lien.

b. a mechanic’s lien.

c. an artisan’s lien.

d. a violation of most states’ laws.

 

 

 

5. Donald’s debt to Everett is past due. Everett brings a legal action against Donald to collect the debt. To ensure that a judgment in Everett’s favor will be collectible, Everett asks the court to order the seizure of Donald’s property. This is a request for

 

a. a guaranty (or suretyship) contract.

b. an order that would violate most state laws.

c. a writ of attachment.

d. a writ of execution.

 

 

 

6. Opie’s debt to Pyle is past due. Pyle obtains a judgment against Opie to collect the debt, but Opie refuses to pay. Pyle asks the court to order the seizure and sale of Opie’s property. This is a request for

 

a. a guaranty (or suretyship) contract.

b. an order that would violate most states’ laws.

c. a writ of attachment.

d. a writ of execution.

 

 

 

7. Delia refuses to pay Ewing $500 in cash on their contract to repair certain theater sets, which Ewing still possesses. Ewing’s lien on the sets will terminate

 

a. if Ewing continues to maintain possession.

b. if Ewing does not file a written notice of lien within thirty days.

c. if Ewing surrenders possession.

d. within thirty days.

 

 

8. Bob owes $5,000 to Consumer Lender Corporation (CLC). As a prejudg­ment remedy to collect the debt, CLC could use

 

a. attachment.

b. contribution.

c. execution.

d. redemption.

 

 

 

9. Larry borrows money from Joan. To use a writ of execu­tion as a remedy, Joan must first

 

a. be unable to collect the amount of a judgment against Larry.

b. be unable to redeem Larry’s exempt property before a sale will occur.

c. notify Larry in writing (in a “writ”) of her intent.

d. obtain and maintain possession of Larry’s property.

 

10. Dolf borrows money from Elin. Dolf defaults. To use attachment as a remedy, Elin must first

 

a. file a suit against Dolf.

b. lose a suit against Dolf.

c. succeed in a suit against Dolf.

d. take possession of Dolf’s property.

 

 

11. Flip’s debt to George is past due. George brings a legal action against Flip to collect the debt. George asks the court to order Home Bank, in which Flip has an account, to pay a portion of the funds to George. This is a request for

 

a. an exemption from most states’ limits on creditors’ actions.

b. an order of garnishment.

c. an order that would violate most state laws.

d. a right of subrogation.

 

 

12. Khali’s debt to Lew is past due. Lew obtains a judgment against Khali to collect the debt, but Khali refuses to pay. Lew asks the court to order Khali’s employer to pay a portion of Khali’s paycheck to Lew. This is a request for

 

a. an exemption from most federal limits on creditors’ actions.

b. an order of garnishment.

c. an order that would violate most state laws.

d. a right of contribution.

 

 

13. Ian’s mortgage debt to Jeff is past due. Jeff brings a legal action against Ian to collect the debt. Jeff asks the court to order the sale of the mortgaged property and the payment of a portion of the proceeds to Jeff. This is a request for

 

a. a deficiency judgment.

b. a foreclosure.

c. a right of reimbursement.

d. redemption.

 

 

 

14. Mike owes $12,000 to Nora, $6,000 to Owen, and $6,000 to Pat. The three creditors enter into an agreement with Mike to discharge the debts on payment of a sum of $12,000 to them, to be divided proportionately. This is

 

a. a composition agreement.

b. a guaranty agreement.

c. a judicial lien.

d. a suretyship agreement.

 

 

15. Liu and Midge—Nero’s creditors—contract with Nero for the discharge of Nero’s liquidated debts on payment of a lesser sum. This is

 

a. a composition agreement.

b. a subrogation.

c. a suretyship agreement.

d. in violation of most states’ laws.

 

 

16. Ezra’s mortgage debt to Foxy is past due. Foxy brings a legal action against Ezra to collect the debt. Foxy asks the court to order the sale of the mortgaged property and the payment of a portion of the proceeds to Foxy. Before the sale, Ezra seeks to keep the property by paying the full amount of the debt. This is

 

a. a deficiency judgment.

b. a right of redemption.

c. a right of subrogation.

d. not possible.

 

 

17. Frank’s farm is to be sold at a foreclosure sale. For Frank to keep the farm by paying the full amount of the debt, plus any interest and costs that have accrued, is

 

a. the equity of redemption.

b. the exercise of exemption.

c. the right of contribution.

d. the right of subrogation.

 

 

18. Beta Software Corporation is a new company that needs to borrow money to meet its payroll. Cliff, president and owner of Beta, asks First National Bank to loan Beta the funds.  If First National insists that Cliff sign the loan applica­tion, making himself personally liable for payment whether or not Beta defaults, Cliff will be

 

a. a guarantor and a surety.

b. a guarantor only.

c. a surety only.

d. neither a guarantor nor a surety.

 

 

19. First State Bank holds a mortgage on Gigi’s property. Gigi defaults on the debt. The bank forecloses. If the proceeds of the foreclosure sale are insuf­ficient to pay the costs of the sale and the debt, the bank can

 

a. obtain a deficiency judgment against Gigi.

b. prorate the costs to its other debtors.

c. reclaim the property as a voidable transfer.

d. use the equity of redemption to redeem the property.

 

 

20.  Beta Software Corporation is a new company that needs to borrow money to meet its payroll. Cliff, president and owner of Beta, asks First National Bank to loan Beta the funds. Generally, for a contract between First National and Cliff with respect to liability for Beta’s loan to be enforceable, it must be in writing if Cliff is

 

a. a guarantor and a surety.

b. a guarantor only.

c. a surety only.

d. neither a guarantor nor a surety.

 

 

 

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