Question 1

Provincial legislation regarding fraudulent transfers goes further than the Bankruptcy and Insolvency Act.Explain.

Accepted Answer

While the federal Act applies only to a

Question 2

What conditions must be satisfied by the seller of unpaid goods in order to repossess them from a bankrupt business?

Accepted Answer

The creditor must demand the return with

Question 3

A commercial proposal made by an insolvent person is an offer made by the debtor to its creditors

Accepted Answer

A) to not resist a receiving order. 
B) whereby the debtor agrees to file for bankruptcy. 
C) to make an assignment of all assets. 
D) for providing an orderly repayment of its debts (or some part of its debt)over a period of time. 
E) to reorganize its business and straighten out its affairs. 
A) to not resist a receiving order. 
B) whereby the debtor agrees to file for bankruptcy. 
C) to make an assignment of all assets. 
D) for providing an orderly repayment of its debts (or some part of its debt)over a period of time. 
E) to reorganize its business and straighten out its affairs.

Question 4

Regarding bankruptcy,what does it mean not to be dealing at "arm's length" with another party? When might this occur?

Accepted Answer

This refers to transactions where a cred

Question 5

What is the difference between a bankrupt person and an insolvent person?

Accepted Answer

A bankrupt person is a person against wh

Question 6

A plaintiff must start court proceedings within two years of the date of any breach or the contract claim is lost forever and may never be revived.

Accepted Answer

A) True 
 B)False

Question 7

When is an undischarged bankrupt liable to a fine or imprisonment?

Accepted Answer

A bankrupt is liable to both imprisonmen

Question 8

A secured creditor does not have to prove its debt before its debt ranks as a claim against the bankrupt's estate.

Accepted Answer

A) True 
 B)False

Question 9

From a creditor's perspective,briefly identify possible strategies that businesses should adopt before extending credit to customers.

Accepted Answer

One of the strategies a prudent business

Question 10

The RRSPs of a bankrupt are exempt from seizure.

Accepted Answer

A) True 
 B)False

Question 11

Of the preferred creditors,the highest priority of claim is

Accepted Answer

A) up to $2000 arrears in wages per employee. 
B) up to three months of rent due to the landlord. 
C) expenses and fees of the trustee in bankruptcy. 
D) up to two years of municipal taxes. 
E) the amount required by government to be deducted from employees' salaries. 
A) up to $2000 arrears in wages per employee. 
B) up to three months of rent due to the landlord. 
C) expenses and fees of the trustee in bankruptcy. 
D) up to two years of municipal taxes. 
E) the amount required by government to be deducted from employees' salaries.

Question 12

One method available to corporations to avoid liquidation is by entering into the following agreement with creditors

Accepted Answer

A) a preference. 
B) a deferred creditor arrangement. 
C) a compromise and arrangement. 
D) a Chapter 11 protection. 
E) an Employment Standards Act stay. 
A) a preference. 
B) a deferred creditor arrangement. 
C) a compromise and arrangement. 
D) a Chapter 11 protection. 
E) an Employment Standards Act stay.

Question 13

Robert Badger operated a hardware business as a sole proprietorship and owed $200 000 to creditors.On June 1,1998,he transferred $20 000 of inventory to Smith Supplies Inc.to pay in full the indebtedness he owed that company.At the time he was not paying his debts as they became due.Instead he paid some money towards accounts when pressed,or he negotiated with them to give him more time to pay.On July 15,he transferred a truck used in the business for one dollar to his cousin.On July 20,a creditor obtained a default judgment and the sheriff seized goods on July 28 in relation to that judgment.The goods were later sold in a judicial sale.On July 29,he purchased on credit $15 000 worth of new inventory.On August 14,a creditor petitioned him into bankruptcy.List each incident where there is an act of bankruptcy.Discuss Robert's situation in relation to the provisions of the Bankruptcy and Insolvency Act.

Accepted Answer

Robert Badger has committed the followin

Question 14

In a bankruptcy proceeding,the creditors can,if they wish,appoint

Accepted Answer

A) any number of inspectors. 
B) a substitute trustee. 
C) the court of jurisdiction. 
D) an official judicial observer. 
E) the official receiver in bankruptcy. 
A) any number of inspectors. 
B) a substitute trustee. 
C) the court of jurisdiction. 
D) an official judicial observer. 
E) the official receiver in bankruptcy.

Question 15

The Bankruptcy and Insolvency Act distinguishes between three classes of debtors.

Accepted Answer

A) True 
 B)False

Question 16

In most Canadian jurisdictions,a plaintiff must start court proceedings within a two-year period.Limitation periods are justified on any of the following grounds EXCEPT that

Accepted Answer

A) a person who fails to pursue a claim leaves the other party in a state of uncertainty that ought not to continue permanently. 
B) as time passes,it becomes more difficult to produce the evidence concerning the facts of the case. 
C) memories fade over time. 
D) any unreasonable delay provides defendants with an opportunity to hide assets or become judgment proof. 
E) witnesses move away or die. 
A) a person who fails to pursue a claim leaves the other party in a state of uncertainty that ought not to continue permanently. 
B) as time passes,it becomes more difficult to produce the evidence concerning the facts of the case. 
C) memories fade over time. 
D) any unreasonable delay provides defendants with an opportunity to hide assets or become judgment proof. 
E) witnesses move away or die.

Question 17

The Superintendent of Bankruptcy has the power to

Accepted Answer

A) investigate where a bankruptcy offence may have been committed. 
B) issue directives to trustees or receivers. 
C) intervene in any bankruptcy court proceeding. 
D) suspend or cancel a trustee's license. 
E) all of the above 
A) investigate where a bankruptcy offence may have been committed. 
B) issue directives to trustees or receivers. 
C) intervene in any bankruptcy court proceeding. 
D) suspend or cancel a trustee's license. 
E) all of the above

Question 18

When a debtor makes an assignment is bankruptcy,the court will discharge the person from obligations to creditors.

Accepted Answer

A) True 
 B)False

Question 19

Where,just before declaring bankruptcy,a person transfers title of real property to his children telling them that he wants to protect the property from bankruptcy,the transfer is a fraudulent conveyance or transfer.

Accepted Answer

A) True 
 B)False

Question 20

An assignment in bankruptcy is a procedure under which a person voluntarily declares bankruptcy.

Accepted Answer

A) True 
 B)False

Exam 29: Creditors Rights

Provincial legislation regarding fraudulent transfers goes further than the Bankruptcy and Insolvency Act.Explain.

What conditions must be satisfied by the seller of unpaid goods in order to repossess them from a bankrupt business?

A commercial proposal made by an insolvent person is an offer made by the debtor to its creditors

Regarding bankruptcy,what does it mean not to be dealing at "arm's length" with another party? When might this occur?

What is the difference between a bankrupt person and an insolvent person?

A plaintiff must start court proceedings within two years of the date of any breach or the contract claim is lost forever and may never be revived.

When is an undischarged bankrupt liable to a fine or imprisonment?

A secured creditor does not have to prove its debt before its debt ranks as a claim against the bankrupt's estate.

From a creditor's perspective,briefly identify possible strategies that businesses should adopt before extending credit to customers.

The RRSPs of a bankrupt are exempt from seizure.

Of the preferred creditors,the highest priority of claim is

One method available to corporations to avoid liquidation is by entering into the following agreement with creditors

In a bankruptcy proceeding,the creditors can,if they wish,appoint

The Bankruptcy and Insolvency Act distinguishes between three classes of debtors.

In most Canadian jurisdictions,a plaintiff must start court proceedings within a two-year period.Limitation periods are justified on any of the following grounds EXCEPT that

The Superintendent of Bankruptcy has the power to

When a debtor makes an assignment is bankruptcy,the court will discharge the person from obligations to creditors.

Where,just before declaring bankruptcy,a person transfers title of real property to his children telling them that he wants to protect the property from bankruptcy,the transfer is a fraudulent conveyance or transfer.

An assignment in bankruptcy is a procedure under which a person voluntarily declares bankruptcy.

Law, society, and Business

The Machinery of Justice

Government Regulation of Business

The Law of Torts

Professional Liability: the Legal Challenges

Formation of a Contract: Offer and Acceptance

Formation of a Contract: Consideration and Intention

Formation of a Contract: Capacity to Contract and Legality of Object

Grounds Upon Which a Contract May Be Set Aside: Mistake and Misrepresentation

Writing and Interpretation

Privity of Contract and the Assignment of Contractual Rights

The Discharge of Contracts

Breach of Contract and Its Remedies

Sale of Goods and Consumer Contracts

Bailment and Leasing

Insurance and Guarantee

Agency and Franchising

The Contract of Employment

Negotiable Instruments

Intellectual Property

Interests in Land and Their Transfer

Landlord and Tenant

Mortgages of Land and Real Estate Transactions

Sole Proprietorships and Partnerships

The Nature of a Corporation and Its Formation

Corporate Governance: the Internal Affairs of Corporations

Corporate Governance: External Responsibilities

Secured Transactions

International Business Transactions

Electronic Commerce

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