Question 1

Assuming the court follows the reasoning of Bates County Redi-Mix Inc.v.Windler,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?

Accepted Answer

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

Question 2

Which of the following is true regarding wage garnishment?

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) B) and E)
G) C) and D) D

Question 3

Which of the following exemptions permits a debtor to retain all or a portion of the family home so that the family will retain some form of shelter?

Accepted Answer

A)   Real estate
B)   Real
C)   Personal estate
D)   Homestead
E)   ShelterF) C) and D)
G) B) and E)

Question 4

Which of the following is true regarding type of judicial liens?

Accepted Answer

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

Question 5

Which of the following is a claim on property either created by a sales contract or imposed by a court in the interest of fairness?

Accepted Answer

A)   Equitable
B)   Consummate
C)   Possessory
D)   Broker's
E)   Common lawF) None of the above
G) B) and D) A

Question 6

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

Question 7

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) A) and B)
G) C) and D)

Question 8

Attachment is the same thing as a writ of execution.

Accepted Answer

A) True 
 B)False

Question 9

What is the amount of the homestead exemption?

Accepted Answer

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

Question 10

A suretyship and a guaranty are the same thing.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A)   Attorney's lien
B)   Common law lien
C)   Consummate lien
D)   Possessory lien
E)   Denial lienF) A) and E)
G) All of the above

Question 12

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

Accepted Answer

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

Question 13

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

Question 14

What is the effect,if any,of Debby's bankruptcy on any debt owed by George?

Accepted Answer

A)   George is not released and will be liable for the loan amounts.
B)   George is released in the same manner that Debby is released.
C)   George 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)   George 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)   George is released only if Debby failed to give him sufficient notice of her plans to file bankruptcy.F) B) and E)
G) A) and B)

Question 15

An artisan's lien remains in effect regardless of whether the artisan retains the property.

Accepted Answer

A) True 
 B)False

Question 16

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?

Accepted Answer

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

Question 17

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 sale and transfer agreement
D)   A pro rata agreement
E)   A termination agreementF) B) and E)
G) B) and D)

Question 18

A[n] ______ is a judicial order authorizing a local law officer to seize and sell any of the debtor's nonexempt real or personal property within the court's geographic jurisdiction.

Accepted Answer

A)   Writ of execution
B)   Order of attachment
C)   Decree of seizure
D)   Decree of sale
E)   Writ of dischargeF) A) and B)
G) C) and D)

Question 19

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

Question 20

Which of the following is the term for what Peggy requested when she requested that the judge have law enforcement officers seize and sell Molly's equipment?

Accepted Answer

A)   Order of compliance
B)   Order of law
C)   Writ of execution
D)   Writ of garnishment
E)   Writ of debt satisfactionF) D) and E)
G) B) and D)

Exam 31: Other Creditors Remedies and Suretyship

Assuming the court follows the reasoning of Bates County Redi-Mix Inc.v.Windler,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?

Correct AnswerverifiedShow Answer

Which of the following is true regarding wage garnishment?

Correct AnswerverifiedD

Which of the following exemptions permits a debtor to retain all or a portion of the family home so that the family will retain some form of shelter?

Correct AnswerverifiedShow Answer

Which of the following is true regarding type of judicial liens?

Correct AnswerverifiedShow Answer

Which of the following is a claim on property either created by a sales contract or imposed by a court in the interest of fairness?

Correct AnswerverifiedA

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 is the correct term for the agreement entered into between Debby's father and the bank?

Correct AnswerverifiedShow Answer

Attachment is the same thing as a writ of execution.

Correct AnswerverifiedShow Answer

What is the amount of the homestead exemption?

Correct AnswerverifiedShow Answer

A suretyship and a guaranty are the same thing.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedC

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

What is the effect,if any,of Debby's bankruptcy on any debt owed by George?

Correct AnswerverifiedShow Answer

An artisan's lien remains in effect regardless of whether the artisan retains the property.

Correct AnswerverifiedShow Answer

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?

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

A[n] ______ is a judicial order authorizing a local law officer to seize and sell any of the debtor's nonexempt real or personal property within the court's geographic jurisdiction.

Correct AnswerverifiedShow Answer

What is the effect,if any,of Debby's bankruptcy on the debt owed by her father?

Correct AnswerverifiedShow Answer

Which of the following is the term for what Peggy requested when she requested that the judge have law enforcement officers seize and sell Molly's equipment?

Correct AnswerverifiedShow Answer

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D

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A

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C

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.

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