Ch28-TB2-WBL-10e - Chapter28 CreditorsRights andRemedies...

Info icon This preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
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. State law governs mechanic’s liens. ANSWER: T PAGE: 568 TYPE: N 2. A contractor who makes improvements to real property, but who is not paid  for the work, may place a mechanic’s lien on the property. ANSWER: T PAGE: 568 TYPE: = 3. A creditor with an artisan’s lien on property can sell the property to satisfy  the debt. ANSWER: T PAGE: 569 TYPE: N 4. An innkeeper’s lien may be secured by its possession of the baggage of  guests who have failed to pay their bills. ANSWER: T PAGE: 569 TYPE: = 27
Image of page 1

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

View Full Document Right Arrow Icon
28 TEST BANK 2—UNIT SIX: CREDITORS’ RIGHTS AND BANKRUPTCY 5. A writ of attachment is a court order to seize a debtor’s property before the  entry of a final judgment in a creditor’s lawsuit against the debtor. ANSWER: T PAGE: 569 TYPE: =
Image of page 2
CHAPTER 28: CREDITORS’ RIGHTS AND REMEDIES 29 6. To use attachment as a remedy, a creditor must have an enforceable right  to payment of the debt. ANSWER: T PAGE: 569 TYPE: = 7. A writ of execution is a court order to seize a debtor’s property after the  entry of a final judgment in a creditor’s lawsuit against the debtor. ANSWER: T PAGE: 570 TYPE: = 8. In some states, the judgment creditor must obtain a separate order of  garnishment to cover each of the debtor’s pay periods. ANSWER: T PAGE: 570 TYPE: = 9. An employer can dismiss an employee due to garnishment for one debt. ANSWER: F PAGE: 570 TYPE: + 10. The usual method of foreclosure on a debtor’s default under a mortgage is a  judicial sale of the property. ANSWER: T PAGE: 572 TYPE: = 11. A creditor’s composition agreement may be entirely enforceable. ANSWER: T PAGE: 572 TYPE: N 12. A mortgagee can obtain a deficiency judgment against a defaulting debtor  only in a state in which there is no equity of redemption. ANSWER: F PAGE: 572 TYPE: = 13. Before a surety can be required to answer for the debt of a debtor, the  debtor must have defaulted on the underlying obligation. ANSWER: F PAGE: 573 TYPE: = 14. A guarantor is secondarily liable on an obligation. ANSWER: T PAGE: 574 TYPE: =
Image of page 3

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

View Full Document Right Arrow Icon
30 TEST BANK 2—UNIT SIX: CREDITORS’ RIGHTS AND BANKRUPTCY 15. A guarantor becomes primarily liable only when a debtor cannot pay a debt. ANSWER: T PAGE: 574 TYPE: + 16. A surety can use any defenses available to a debtor to avoid liability on the  obligation to the creditor.
Image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern