legal and social. true and false practice

1. Nonexempt property can be taken by execution or attachment. 2. Acme Credit Union gave Mary a loan to buy a car two years ago, and Acme has he car. Last month Mary had Mike Mechanic put a new transmission in that car, and aft so she did not have the money to pay Mike-therefore Mike has retained possession o Under these circumstances Mike has priority (to the car) over Acme Credit Union. 3. Before a guarantor can be required to answer for the debt of a debtor, the deb have defaulted on the underlying obligation. 4. Debbie Debtor applies for a loan at Ace Bank. Since Debbie has a bad credit hist bank requires that she have a co-signer. Debbie's brother, Dan, co-signs as a surety. Debb and Ace Bank's loan officer all sign the paperwork, and then the bank gives Debbie a check amount of the loan. However, when Debbie goes to deposit the check from Ace Bank checking account at Friendly Credit Union, Debbie discovers that the check Ace Bank gave fake-and it's worthless. Under these circumstances neither Debbie nor Dan are respons making payments to Ace Bank. 5. The right of contribution is the right of a co-surety/co-guarantor to proporti recover from his co-surety/co-guarantor. _ 6. An oral guaranty contract is usually enforceable. Part II: Multiple Choice (2 pts each) Circle the letter of the one BEST answer ONLY 7-8. Charles owes Freda $100,000, and a court awards Freda a judgment of that amount. To satisfy the judgment, Charles' home is sold at public auction for $95,000 (there are no expenses of sale, and no outstanding mortgage). Ernie Electrician has a mechanic's lien on the home for $10,000, and the state homestead exemption is $90,000. Under these circumstances, Charles gets a. $95,000 b. $90,000 $85,000 d. $80,000 9-10. Adam and Betty are co-sureties of Danny's debt. Adam's maximum liability is $80,000, and Betty's is $40,000. The total amount remaining to be paid on Danny's debt is $10,000, and Danny is in default for that amount. Betty pays the creditor the entire $10,000 remaining on the debt. In the absence of any agreement to the contrary, Betty is entitled to recover from Adam a. $10,000 b. $7,500 $6,666 d. $5,000