Ch28-TB2-WBL-10e

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

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