Ch28-TB1-WBL-10e

Ch28-TB1-WBL-10e - Chapter28 CreditorsRights andRemedies

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Chapter 28 Creditors’ Rights and Remedies N.B.:   TYPE  indicates that a question is new, modified, or unchanged, as  follows. N A question  new  to this edition of the Test Bank. + A question  modified  from the previous edition of the Test Bank, = A question  included  in the previous edition of the Test Bank. TRUE/FALSE QUESTIONS 1. A  mechanic’s lien can be enforced to obtain payment for work that adds  value to personal property. ANSWER: F PAGE: 568 TYPE: = 2. A creditor with a mechanic’s lien on property can sell the property to satisfy  the debt. ANSWER: T PAGE: 568 TYPE: + 3. A debt does not have to be past due before a creditor can begin legal action  against a debtor. ANSWER: F PAGE: 568 TYPE: = 4. An artisan’s lien is effective only if a creditor has possession of the property. ANSWER: T PAGE: 569 TYPE: = 25
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26 TEST BANK 1—UNIT SIX: CREDITORS’ RIGHTS AND BANKRUPTCY
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CHAPTER 28: CREDITORS’ RIGHTS AND REMEDIES 27 5. An   attachment   is   a   court-ordered   seizure   and   taking   into   custody   of  property prior to the securing of a judgment for a past-due debt. ANSWER: T PAGE: 569 TYPE: = 6. If a debtor will not pay a judgment, a creditor can only resort to “self-help”  to collect. ANSWER: F PAGE: 569 TYPE: = 7. A court may  not  order an employer, as a result of a garnishment proceed- ing, to turn over a debtor-employee’s property to pay a debt. ANSWER: F PAGE: 570 TYPE: = 8. The law limits the amount of money that can be garnished from a debtor’s  weekly take-home pay. ANSWER: T PAGE: 570 TYPE: + 9. A mortgagee has the right to seek a judicial sale of the mortgaged property  on the mortgagor’s default. ANSWER: T PAGE: 572 TYPE: N 10. To foreclose on real property securing a mortgage, the mortgagee must ask  a court for a deficiency judgment. ANSWER: F PAGE: 572 TYPE: N 11. A surety is secondarily liable on an obligation. ANSWER: F PAGE: 573 TYPE: = 12. A surety becomes primarily liable only when a debtor cannot pay a debt. ANSWER: F PAGE: 573 TYPE: + 13. A contract of suretyship must be in writing to be enforceable. ANSWER: F PAGE: 573 TYPE: =
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28 TEST BANK 1—UNIT SIX: CREDITORS’ RIGHTS AND BANKRUPTCY 14. Under a guaranty contract, the guarantor is permitted to be responsible for  only a single transaction. ANSWER: F PAGE: 574 TYPE: = 15. Before the  guarantor  of a debt can be required to answer for the debt of a  debtor, the debtor must have defaulted on the underlying obligation.
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This note was uploaded on 10/15/2010 for the course ACCT ACCT40 taught by Professor Birnbaum during the Fall '08 term at CUNY Brooklyn.

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Ch28-TB1-WBL-10e - Chapter28 CreditorsRights andRemedies

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