Question 1

Which of the following is true regarding types of liens?

Accepted Answer

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

Question 2

"Rough Start." Debby, who just graduated from college, wanted to buy a new car. She, however, 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 Debby. Debby's father cosigned with Debby on her loan at the bank. Debby also wanted to start a real estate business. She needed funds with which to do so. Her boyfriend, George, agreed in a signed writing with the bank that he would pay Debby's start-up loan for the real estate business if Debby did not do so. Unfortunately, Debby did not make any money in the real estate business. She went bankrupt as did George who had been acting as her receptionist.
-What is the effect, if any, of Debby's bankruptcy on the debt owed by her father?

Accepted Answer

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

Question 3

Which of the following was the result in In re Hydro-Action Inc., the bankruptcy case in the text involving whether a claimant was entitled to a lien upon a conveyor belt system that it installed?

Accepted Answer

A)   The court found that a lien was foreclosed because the claimant did not qualify as a mechanic, artisan, or materialman.
B)   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.
C)   The court found that a lien was foreclosed because the bankruptcy trustee had priority.
D)   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.
E)   The court found that a lien was available because under principles of equity, it would be unjust to deny the claimant a recovery.F) A) and B)
G) A) and C)

Question 4

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?

Accepted Answer

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 not subject to garnishment because it would be against public policy to find as such.
D)   The court ruled that the payments were subject to garnishment because the payments constituted debts due the defendant.
E)   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.F) A) and D)
G) D) and E)

Question 5

"Rough Start." Debby, who just graduated from college, wanted to buy a new car. She, however, 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 Debby. Debby's father cosigned with Debby on her loan at the bank. Debby also wanted to start a real estate business. She needed funds with which to do so. Her boyfriend, George, agreed in a signed writing with the bank that he would pay Debby's start-up loan for the real estate business if Debby did not do so. Unfortunately, Debby did not make any money in the real estate business. She went bankrupt as did George who had been acting as her receptionist.
-Which of the following is the correct term for the agreement entered into between Debby's father and the bank?

Accepted Answer

A)   A suretyship
B)   A guaranty
C)   A certified agreement
D)   An acknowledged agreement
E)   An executory promiseF) D) and E)
G) B) and E)

Exam 31: Other Creditors Remedies and Suretyship

Correct Answer
verified

Which of the following is true regarding types of liens?

Correct Answer
verified

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?

Correct Answer
verified

Which of the following was the result in In re Hydro-Action Inc., the bankruptcy case in the text involving whether a claimant was entitled to a lien upon a conveyor belt system that it installed?

Correct Answer
verified

Correct Answer
verified

Exam 31: Other Creditors Remedies and Suretyship

Correct AnswerverifiedShow Answer

Which of the following is true regarding types of liens?

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

Which of the following was the result in In re Hydro-Action Inc., the bankruptcy case in the text involving whether a claimant was entitled to a lien upon a conveyor belt system that it installed?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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