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Rhonda's debt to Skyler is past due. Skyler brings a legal action against A to collect the debt. To ensure that a judgment in Skyler's favor will be collectible, Skyler asks the court to order the seizure of Rhonda's property. Exempt from such an order in most states would be?
Answer
1.all of Rhonda's real property.
2.as much of Rhonda's real property as Rhonda opts to exempt.
3.Rhonda's family home in its entirety or up to a specified amount.
4.none of Rhonda's real property.

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?
Answer
1.a mechanic's lien.
2.a judicial lien.
3.a violation of most state laws.
4.an artisan's lien.

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
Answer
1.if Ewing continues to maintain possession.
2.if Ewing does not file a written notice of lien within thirty days.
3.if Ewing surrenders possession.
4.within thirty days.

Larry borrows money from Joan. To use a writ of execution as a remedy, Joan must first
Answer
1.be unable to redeem Larry's exempt property before a sale will occur.
2.notify Larry in writing (in a "writ") of her intent.
3.obtain and maintain possession of Larry's property.
4.be unable to collect the amount of a judgment against Larry.

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
Answer
1.an order of garnishment.
2.an order that would violate most state laws.
3.a right of subrogation.
4.an exemption from most states' limits on creditors' actions.

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
Answer
1.a composition agreement.
2.a suretyship agreement.
3.in violation of most states' laws.
4.a subrogation.

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
Answer
1.the exercise of exemption.
2.the right of subrogation.
3.the right of contribution.
4.the equity of redemption.

The payment of Brian's debt to Chuck is guaranteed by Brian's personal property. This is
Answer
1.a suretyship agreement.
2.a reorganization.
3.a violation of most state laws.
4.a secured transaction.

The payment of Yves's debt to Zach is guaranteed by Yves's personal property. Their agreement describes Yves's subject property by serial number. To establish Zach's interest, this is
Answer
1.sufficient if it accurately describes the parties' agreement.
2.sufficient unless it is too tedious to review.
3.not sufficient.
4.irrelevant.

County Bank wants to perfect its security interest in collateral owned by Delta Sales Company. Most likely, a financing statement should be filed with
Answer
1.the federal loan officer.
2.the county clerk.
3.the local chamber of commerce.
4.the secretary of state's office.

Mona lives in New Jersey, but she works in New York. Mona borrows $1,000 from National Bank, using her motorcycle as collateral. To perfect its security interest, the bank must file its financing statement in at least
Answer
1.New Jersey.
2.New Jersey and New York.
3.every state.
4.New York.

Everyday Loans, Inc., takes possession of Frank's stock in Gamma Corporation to perfect Everyday's security interest in the stock. This is
Answer
1.a purchase-money security interest.
2.proceeds.
3.after-acquired property.
4.a pledge.

Dependable Credit Corporation asks Electric Supply Company to agree to a security agreement that provides for coverage of the proceeds from the sale of after-acquired property. This is
Answer
1.a future advance.
2.a first-in, first-out rule.
3.a funds guaranty.
4.a floating lien.

Expert Capital Company and First National Bank are secured parties with security interests in property owned by Grande Corporation. Between these security interests, the first to be filed or perfected has priority over other filed or perfected security interests in
Answer
1.most circumstances.
2.states that have not adopted Article 9 of the UCC.
3.states that require a security agreement to be signed and dated by the creditor.
4.no circumstances.

Elias repays his debt, incurred to buy consumer goods, to First City Bank and immediately files a written request for a termination statement. First City
Answer
1.must comply within one month of receipt of the letter.
2.must comply within twenty days of receipt of the letter.
3.need not comply.
4.must refund $500 to Elias.

Ron does not make a payment on his car loan for several months. The dealer, Star Auto, repossesses the car by towing it from a public parking lot. Ron sues Star for breach of the peace. Ron will probably
Answer
1.not prevail, because the repossession was not a breach of the peace.
2.prevail, because Ron has not formally defaulted on the car loan.
3.prevail, because the car was parked in a public lot when it was towed.
4.not prevail, because a creditor can repossess property in which it holds an interest if no threats or force are used against a debtor.

The payment of Frida's debt to Gianini is guaranteed by Frida's personal property. Gianini is
Answer
1.a debtor.
2.a security interest.
3.a secured transaction.
4.a secured party.

The payment of Hu's debt to Ian is guaranteed by Hu's personal property. To give public notice of his interest in Hu's property, Ian is most likely to
Answer
1.file a financing statement with the appropriate authority.
2.e-mail other potential creditors.
3.publish a collection notice in local newspapers.
4.attach a bright label to Hu's property.

Best Credit Corporation lends funds to Cody, a consumer, to apply to the cost of a sport utility vehicle (SUV), which is the collateral for the loan. An enforceable security interest requires
Answer
1.a written agreement only.
2.Best's possession of the SUV only.
3.a written agreement and Best's possession of the SUV.
4.a written agreement or Best's possession of the SUV.

The payment of Jose's debt to Klint is guaranteed by Jose's personal property. The process by which Klint can protect himself against the claims of third parties to this property is
Answer
1.communication.
2.perfection.
3.search and seizure.
4.attachment.

Lena borrows from Mac and Nicol, using the same collateral for both loans. Only Nicol has a perfected security interest. Lena defaults on both loans. The party with first rights to the collateral is
Answer
1.Mac only.
2.Nicol only.
3.Lena.
4.Mac and Nicol, in proportion to Lena's debt to each.

Quality Appliance Company allows Reba to take a set of kitchen appliances that she bought from Quality even though she has not paid the full price. Quality's legally sufficient financing statement in the goods need not include
Answer
1.a description of the collateral.
2.Reba's name.
3.a statement of the reason for allowing Reba to take the goods.
4.Quality's name.

Excel Vehicles, Inc., makes and sells automobiles to auto dealers, including Fine Auto Sales. Fine sells the cars to consumers and businesses.

Refer to Fact Pattern 29-1A. A car in Fine's possession is probably
Answer
1.a consumer good.
2.inventory.
3.an accession.
4.equipment.

Excel Vehicles, Inc., makes and sells automobiles to auto dealers, including Fine Auto Sales. Fine sells the cars to consumers and businesses.

Refer to Fact Pattern 29-1A. Holly, a professional driver, buys an Excel from Fine to drive in a Grand Prix race. Holly's Excel is
Answer
1.inventory.
2.a consumer good.
3.equipment.
4.an accession.

Carlton files a petition in bankruptcy. One of the goals of bankruptcy law with respect to a debtor is to
Answer
1.ensure that third parties will continue to guarantee loans.
2.provide a fresh start, free from creditors' claims.
3.shield assets from creditors' claims.
4.encourage the continued use of credit to borrow funds.

Rely Credit Company loans Standard Manufacturing Company $50,000 and takes a security interest in the equipment that Standard buys with the money and receives on July 1. Standard files for bankruptcy on July 12.

Refer to Fact Pattern 30-2A. If Rely does not perfect its security interest before Standard files for bankruptcy, then Rely will be an unsecured creditor and the trustee of Standard's estate can
Answer
1.invalidate Rely's interest only if Rely knew of the impending bankruptcy.
2.invalidate Rely's interest under any circumstances.
3.invalidate Rely's interest only before Rely perfects it.
4.not invalidate Rely's interest.

Rely Credit Company loans Standard Manufacturing Company $50,000 and takes a security interest in the equipment that Standard buys with the money and receives on July 1. Standard files for bankruptcy on July 12.

Refer to Fact Pattern 30-2A. If Rely perfects its security interest before Standard files for bankruptcy, then Rely will be a secured creditor and the trustee of Standard's estate can
Answer
1.invalidate Rely's interest under any circumstances.
2.invalidate Rely's interest only after Reliable perfects it.
3.invalidate Rely's interest only if Rely knew of the impending bankruptcy.
4.not invalidate Rely's interest.

Kipper files a petition in bankruptcy. Kipper's dischargeable debts include
Answer
1.unpaid state and federal taxes.
2.domestic-support obligations.
3.unsecured credit-card debt.
4.student loans unless the lender would suffer undue hardship.

Fix-It Auto Repair receives a discharge in bankruptcy, even though some creditors hold judgments on overdue debts against it and others filed actions to collect on overdue debts before the bankruptcy. Fix-It's discharge will
Answer
1.only void uncollected judgments on overdue debts.
2.only stop actions to collect overdue debts.
3.stop actions and void judgments regarding overdue debts.
4.neither stop actions nor void judgments regarding overdue debts.

Natural Resources, Inc. (NRI), files for bankruptcy under Chapter 11 and assumes the role of a debtor in possession. In this role, NRI is similar to
Answer
1.a trustee in a liquidation proceeding under Chapter 7.
2.a family farmer after a discharge under Chapter 12.
3.a secured creditor in possession of collateral under Chapter 13.
4.a creditor at a Chapter 7 creditors' meeting.

To adjust debt and institute a repayment plan, Sven--who is not a corporation, a partnership, or a family farmer or fisherman--may file a petition in bankruptcy under the Bankruptcy Code's Chapter
Answer
1.12
2.7
3.13
4.11

Veda believes that she needs to obtain a Chapter 13 discharge in bankruptcy. A Chapter 13 proceeding can be initiated by a filing of a petition by
Answer
1.a creditor.
2.anyone.
3.a trustee.
4.a debtor.

Suki files for bankruptcy under Chapter 13. The value of her property to be distributed under the plan is more than the amount of the creditors' claims. The court can approve the plan
Answer
1.only if the trustee does not object.
2.over the objection of either an unsecured creditor or the trustee.
3.only if no unsecured creditor objects.
4.only if neither an unsecured creditor nor the trustee objects.

Mabel files a petition in bankruptcy. The initial proceeding on this petition will be in
Answer
1.the United States Supreme Court.
2.the highest court in the state in which A is located.
3.a state bankruptcy court.
4.a federal bankruptcy court.

Elmo files a petition in bankruptcy. If the court concludes that there are grounds for a finding of "substantial abuse," the court will most likely
Answer
1.discharge Elmo's debts.
2.issue an automatic stay against any actions by Elmo's creditors.
3.dismiss Elmo's petition.
4.distribute Elmo's property to Elmo's creditors.

Tasty Pastries declares bankruptcy, idling Tasty's delivery vehicles. A creditor with a secured interest in the vehicles can compel Tasty to pay a certain amount of money each month to offset the depreciation in the value of the vehicles. This is
Answer
1.the avoidance doctrine.
2.the adequate protection doctrine.
3.the creditor preference rule.
4.the Tasty Pastries rule.

Eve sells her motorcycle to her brother Floyd for $1,000. Twelve days later, Eve files for bankruptcy under Chapter 7.

Refer to Fact Pattern 30-1A. Floyd dies while riding the cycle. Eve is Floyd's only heir. With respect to the bankruptcy estate, the inheritance is
Answer
1.exempt property.
2.part of the estate if Floyd died within 180 days after Eve's filing.
3.part of the estate if Floyd died more than 180 days after Eve's filing.
4.part of the estate if the accident was in some way Eve's fault.
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