64- Which of the following regarding a Chapter 7 trustee is incorrect?

Multiple Choice

• The trustee takes possession of the debtor's property and has it appraised.
• The trustee sells the bankrupt's exempt property as soon as possible, consistent with the best interest of the creditors.
• The trustee may operate the debtor's business.
• The trustee is required to keep an accurate account of all the property and money he receives and to promptly deposit moneys into the estate's accounts.

65- Jada suffered a covered loss under her homeowner's policy, but the insurer unreasonably delayed her claim for years before finally paying. Jada can sue the insurer for __________.

Multiple Choice

• bad-faith breach of contract
• professional malpractice
• failure to exercise a reservation of rights
• commercial impracticability

66- Under Article 2 of the Uniform Commercial Code, why does it matter whether a party to a contract is a merchant?

Multiple Choice

• It is the test for applying Article 2 of the UCC.
• Merchants are treated held to different standards than non-merchants.
• All contracts in which one or both parties are merchants are handled under Article 2A of the UCC.
• Article 2 does not concern itself with cases regarding the transactions of goods.

67- A clause in a mortgage specifies that if the mortgaged property is sold, the remaining balance becomes immediately due and payable. This is known as a(n) __________ clause.

Multiple Choice

• action and sale
• strict foreclosure
• due on sale
• subrogation

68- Teresa and Dawson agreed to pay two (2) installments of $1000 over a two-month period to buy a new laptop from Emilio. Dawson co-signed the note for Teresa. Teresa could not make the second payment on time, and Emilio extended the repayment period for an additional month. Is Dawson still responsible as a surety?

Multiple Choice

• Yes, since sureties never have to consent to a change in a principal's obligation
• Yes, since the extension of time was minimal (one month)
• Yes, because if the creditor merely allows the principal more time without the surety's consent, this does not relieve the surety of responsibility.
• No, because a change was made to the principal's obligation without the consent of the surety.

69- Joni wants to buy Yasgur's farm. She agrees to pay Yasgur a monthly payment towards the farm, to take possession and to insure the property. Yasgur retains the legal title while Joni is making payments. This arrangement is called a __________.

Multiple Choice

• mortgage
• land contract
• deed of trust
• strict foreclosure

70- Winifred purchased an automobile insurance policy from Nation-State Insurance Company. The policy contained a liability provision. Winifred was involved in a collision with Keith caused by the negligence of both Winifred and Keith. Both were injured. Who would be entitled to collect money under the liability provision of Winifred's policy?

Multiple Choice

• Keith only
• Winifred only
• Both Keith and Winifred
• Neither Keith nor Winifred

71- Which of the following is eligible for Chapter 11 bankruptcy protection?

Multiple Choice

• A stockbroker
• A commodities broker
• A savings and loan association
• A partnership

72- Which of the following remedies would be unavailable to a buyer that could buy the same kind of goods from elsewhere?

Multiple Choice

• Consequential damages
• Incidental damages
• Actual damages
• Specific performance

73- Until the collateral is actually disposed of by the creditor, the buyer has the right to __________ it.

Multiple Choice

• rescind
• revoke
• redeem
• assign or delegate

74- Which of the following is an essential element of a lien?

Multiple Choice

• The execution of a written deed of trust
• A sale of goods that is either the exclusive or the predominate purpose of the transaction
• A debt created by the improvement or the provision of services concerning the goods
• An accommodation surety who voluntarily accepts the primary debt obligation of the surety