Debtor Creditor Bankruptcy MCQ

Debtor Creditor Bankruptcy MCQ - Debtor Creditor Bankruptcy...

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Debtor Creditor Bankruptcy MCQ 1. Which of the following liens generally require(s) the lien holder to give notice of legal action before selling the debtor’s property to satisfy the debt? Mechanic's Lien Artisan's Lien A. Yes No B. Yes Yes C. No No D. No Yes 2. When a principal debtor defaults and a surety pays the creditor the entire obligation, which of the following remedies gives the surety the best method of collecting from the debtor? A. Exoneration. B. Contribution. C. Subrogation. D. Attachment. 3. Pico Mirandola purchased a stereo for $400 with his credit card. At home, Pico discovered the stereo did not work properly. Pico A. Can refuse to pay the credit card bill if he attempted in good faith to return the stereo or give the store an opportunity to correct the problem. B. Must pay the credit card bill but has a right to damages and attorney’s fees against the store under the Uniform Consumer Credit Code. C. Can refuse to pay the credit card bill if the purchase was made more than 100 miles from home. D. Cannot refuse to pay the credit card bill because it was for a purchase of more than $50. 4. Bar, a creditor of Sy, has filed an involuntary petition in a bankruptcy liquidation case against Sy. Sy is indebted to six unsecured creditors including Bar for $6,000 each. If Sy opposes the petition, which of the following is true? A. The court may not award attorney’s fees to Sy because of its limited authority under the Bankruptcy Code. B. Bar may be required to file a bond indemnifying Sy for any losses that Sy may incur. C. The U.S. Trustee must appoint a trustee within ten days after the filing of the petition. D. Bar must be joined by at least three other creditors in filing the petition. 5. On February 28, 20X1, Master, Inc. had total assets with a fair value of $1.2 million and total liabilities of $990,000. On January 15, 20X1, Master made a monthly installment note payment to Acme Distributors Corp., a creditor holding a properly perfected security interest in equipment having a fair value greater than the balance due on the note. On June 15, 20X1, Master voluntarily filed a petition in bankruptcy under the liquidation
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provisions of Chapter 7 of the Federal Bankruptcy Code. One year later, the equipment was sold for less than the balance due on the note to Acme. Which of the following statements correctly describes Acme’s distribution from Master’s bankruptcy estate? A.
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This note was uploaded on 12/06/2009 for the course ACCT REG 5744 taught by Professor Smith during the Spring '09 term at Nova Southeastern University.

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Debtor Creditor Bankruptcy MCQ - Debtor Creditor Bankruptcy...

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