6. With regard to the rights of creditors, which of the following is false?

a.A secured creditor has priority to the assets covered by the security in priority to a trustee appointed under the Bankruptcy Act.

b.A secured creditor with security properly registered in the registry in Victoria has priority to the asset over an unsecured creditor.

c.If a debtor transfers all of her assets to her spouse to prevent a judgment creditor from recovering the assets to pay the debt, there is nothing the creditor can do.

d.If a bank chooses to enforce a security, the company may go into receivership without necessarily going into bankruptcy.

e.A debenture under the Personal Property Security Act can create a"floating charge" thatwill not attach to anything specific until the debtor defaults or until the happening of another "crystallizing" event.

7.An agent owes a fiduciary duty to his principal; a director owes a fiduciary duty to

the corporation; partners owe a fiduciary duty to the firm and to the other parties.

Which of the following is not true with regard to one's fiduciary duty?

a. A shareholder owning a business that secretly competes with the corporation

is in breach of fiduciary duty.

b. A partner secretly competing with his own firm would be in breach of his

fiduciary duty.

c. A fiduciary is in a position of trust and owes true loyalty to the person

depending on him.

d. An agent would be in breach of his fiduciary duty if he let his interest conflict

with his duty.

e. An agent failing to disclose to his principal all information relating to the

principal's business transaction would be a breach of his fiduciary duty.

8. Mary, a professional accountant, is concerned that if she is professionally negligent, a potential creditor could recover her house and car in execution proceedings. Although Mary has not been negligent and there are no creditors in existence, to be on the safe side Mary transfers her house and car into her husband's name. This is an example of:

a. A Fraudulent Conveyance.

b. Estate or Tax Planning.

c. A Fraudulent Preference.

d. Grounds to Petition Mary into Bankruptcy.

e. Grounds for a creditor to take proceedings under the Execution Act.