Question
1. A secured party perfects a claim by filing a financing statement with the debtor. True False 2. To create an enforceable security interest, a
1. A secured party perfects a claim by filing a financing statement with the debtor.
True
False
2. To create an enforceable security interest, a debtor does not need to have rights in the collateral.
True
False
3. Kellys Autos Inc. borrows funds from Lenders Finance Company under a security agreement. Later, Kellys buys new vehicles to add to its inventory. Lenders has a security interest in the new vehicles
if the security agreement included an after-acquired property clause.
if Lenders has not yet filed a financing statement.
if Kellys bought the new vehicles with Lenders funds.
none of the choices.
4. Loan Company has a security interest against Manufacturing Inc. that is enforceable. In other words, with respect to the collateral, Loans rights are said to
attach.
ensure.
perfect.
process.
5. An individual who borrows funds from a financial institution to purchase real property by taking out a mortgage is a mortgagee.
True
False
6. A deficiency judgment will amount to the difference between the borrowers outstanding debt and lenders asking price at the foreclosure sale.
True
False
7. Art obtains a mortgage loan from Bayside Bank so that he can purchase a house. The house costs $200,000. Art makes a down payment of $20,000. Based on the amount of the price paid up front, Bayside will likely require Art to
purchase mortgage insurance.
record the mortgage loan.
agree to a prepayment penalty clause.
pay all claims against the property.
8. Every state allows a defaulting borrower to redeem the property before the foreclosure sale.
True
False
9. All bankruptcy proceedings are held in
federal bankruptcy courts.
state bankruptcy courts.
special cross-jurisdictional debtors courts.
local small-claims courts.
10. Dana operates Energy Inc., a corporation in the fuel-supply business. Dana wants to create a plan under which the firm pays a portion of its debts, is discharged of the remainder, and is allowed to continue in business. Energy should file a petition in bankruptcy for relief through
a liquidation.
a reorganization.
a repayment plan.
an adjustment of debts.
11. Under Chapter 7, a debtor who fails to appear at the creditors meeting when required may be
denied a discharge of his or debts in the bankruptcy proceeding.
ordered to complete a means test.
forced to submit to an examination by the creditors.
told to turn over control of his or her property to a bankruptcy trustee.
12. Courts interpret the words used in an insurance contract as if most people have the special training necessary to understand the intricate terminology.
True
False
13. Insurance protection may compensate for the injury or death of the insured, but not for the injury or death of another.
True
False
14. Nick is the beneficiary of a life insurance policy on Ollies life obtained from Peoples Insurance Company through Quinn, an insurance broker. The insurer of this policy is
Nick.
Ollie.
Peoples Insurance.
Quinn.
15. The rights and interests a person has in anything with an established value that is subject to ownership can constitute property.
True
False
16. An owner in fee simple is entitled to use or possess property, but not to dispose of it as he or she chooses, during his or her lifetime.
True
False
17. A patent is tangible personal property.
True
False
18. Nan asks Otto if she can store her car in his garage while she serves in the U.S. Army. He agrees. This is
a bailment.
a contract.
a gift.
conversion.
19. Before entering the dining room in Restaurante Italiano, Sergio checks his coat in the lobby with a valet employed by the restaurant. In the coats pocket is an iPhone X. A bailment exists between the restaurant and its customer for
the coat only.
the phone only.
the coat and the phone.
neither the coat nor the phone.
20. On completion of a bailment, the bailee may dispose of the property at will.
True
False
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started