6- Peyton borrowed $5,000 from First Holland Bank (First Holland). At the time the loan was made to Peyton, Tammy orally agreed with First Holland that she would repay the loan if Peyton failed to do so. Tammy received no personal benefit as a result of the loan to Peyton. Under the circumstances, which of the following is most accurate?

Multiple Choice

• Tammy must provide collateral to First Holland valued at $5,000 or more.
• Both Tammy and Peyton are primarily liable to repay the loan.
• Tammy is free from liability regarding the debt obligation.
• Peyton must provide collateral to Tammy valued at $5,000 or more.

7- Mirabella is sued for causing an accident and is found to be liable for $50,000 in compensatory damages, $50,000 in court costs, and $250,000 in punitive damages. Her policy limits are $300,000, and the most common rules apply regarding the insurer's obligations to pay damages incurred by the insured. How much does the insurer have to pay?

Multiple Choice

• $50,000
• $100,000
• $300,000
• $350,000

89- Courts interpret insurance policy provisions as they would be understood by a(n) __________.

Multiple Choice

• attorney in general practice
• attorney board-certified in insurance law
• average person
• reasonable juror

91- Uniform Commercial Code Section 2-305 will govern the supplying of __________ in a commercial transaction.

Multiple Choice

• missing quantity
• a missing price
• reasonable standard
• revocation of offers

94- A bankruptcy petition under Chapter 7 can be filed __________.

Multiple Choice

• only by the debtor
• only by the debtor's creditor(s)
• only by the trustee
• either by the debtor or his creditors

96- Ethan sells lawn furniture and various shade coverings. Ethan contracts with Jamie for 5 new patios sets and coverings for her new outdoor patio at her restaurant. Jamie has expressed to Ethan that she is prepared to pay for the contract in three payment installments and Ethan agrees. Jamie's intentions are to keep delaying payment until she can hire a bankruptcy attorney to handle her current financial distress. Ethan gets word of Jamie's "attorney shopping" and asks his own attorney what he should do in light of this information about Jamie. If the seller discovers that the buyer is insolvent, he has:

Multiple Choice

• no right to stop the delivery of any goods that he has shipped to the buyer.
• the right to stop the delivery of any goods that he has shipped to the buyer.
• the right to ask the buyer to pay double compensation.
• no right to make anything against the buyer.

97- A court cannot grant a discharge of the debts provided in the plan if a debtor received a discharge in a case filed under Chapter 7, 11, or 12 of the Bankruptcy Code in a __________ period preceding the date of the order for relief under Chapter 13.

Multiple Choice

• two-year
• four-year
• five-year
• six-year

98- Which of the following is correct regarding financing statements?

Multiple Choice

• A financing statement serves as actual notice to the world.
• A financing statement must give the name of the secured party.
• A financing statement is effective for a period of three (3) years from the date of filing.
• A financing statement must include the names of any incidental beneficiaries to the underlying sales contract.

99- As a general rule, which of the following would not be covered in a professional liability policy?

Multiple Choice

• Tortious conduct in the practice of a profession
• Negligent professional conduct causing harm to a third party
• Intentional wrongful professional conduct
• Bodily injury in a medical malpractice claim