Test%206A - Test 6 True/False Indicate whether the sentence...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Test 6 True/False Indicate whether the sentence or statement is true or false. ____ 1. A mechanic's lien can be enforced to obtain payment for work that adds value to personal property. ____ 2. A debt does not have to be past due before a creditor can begin legal action against a debtor. ____ 3. A court may not order an employer, as a result of a garnishment proceeding, to turn over a debtor-employee's property to pay a debt. ____ 4. A surety is secondarily liable on an obligation. ____ 5. Homestead exemptions are designed to permit debtors to retain some part or all of the value of their homes, free from the claims of some creditors. ____ 6. Only an individual can be a debtor under Chapter 7. ____ 7. Concealing assets from a bankruptcy court is a crime. ____ 8. The filing of a petition for bankruptcy will automatically stay most legal actions against the debtor. ____ 9. Once a debtor files for bankruptcy, a secured creditor cannot recover more on a debt than the value of the col- lateral covering the debt. ____ 10. Classes of debts owed to unsecured creditors are paid in the order of their priority. Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. Fact Pattern 28-1 Ruth hires Standard Carpenters, Inc., to build a fence around her property. When the fence is finished, Ruth does not pay Standard Carpenters for the work. ____ 11. Refer to Fact Pattern 28-1. To collect the debt, Standard Carpenters may place on Ruth's property a. a judicial lien. b. a mechanic's lien. c. an artisan's lien. d. an innkeeper's lien. ____ 12. Refer to Fact Pattern 28-1. Standard Carpenters is a. a guarantor. b. a lien creditor. c. a mortgagor. d. a surety. ____ 13. Aaron, a jeweler, repairs Beth's necklace and returns it to her even though she does not pay for the repairs. To recover payment, Aaron can claim a. a mechanic's lien. b. an artisan's lien. c. an innkeeper's lien. d. none of the above. Fact Pattern 28-3
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Dina asks Edie to co-sign a credit application so that she can borrow money and buy a truck from Finest Quality Motors. ____ 14.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/27/2008 for the course ACCT 215 taught by Professor Curtis during the Spring '08 term at Iowa State.

Page1 / 5

Test%206A - Test 6 True/False Indicate whether the sentence...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online