Question 1

Which of the following statements is true in respect of builders' lien legislation?

Accepted Answer

A)  it obligates owners of land to pay the claims of builders 
B)  it establishes government funded insurance to protect unpaid builders 
C)  it obligates contractors to pay the claims of subcontractors 
D)  it gives a lien claimant a claim against the land on which an improvement is made 
E)  all of the above 
A)  it obligates owners of land to pay the claims of builders 
B)  it establishes government funded insurance to protect unpaid builders 
C)  it obligates contractors to pay the claims of subcontractors 
D)  it gives a lien claimant a claim against the land on which an improvement is made 
E)  all of the above

Question 2

Laura had made a commercial proposal (Division I) to her creditors. They have accepted it by a two- thirds vote. The next step is for the trustee to

Accepted Answer

A)  determine if the agreement is prejudiced against general creditors. 
B)  file the document with the Superintendent of Bankruptcy. 
C)  get the approval of the receiver in bankruptcy. 
D)  schedule a hearing in the Bankruptcy Court. 
E)  apply to the court to have the proposal declared binding upon all the creditors. 
A)  determine if the agreement is prejudiced against general creditors. 
B)  file the document with the Superintendent of Bankruptcy. 
C)  get the approval of the receiver in bankruptcy. 
D)  schedule a hearing in the Bankruptcy Court. 
E)  apply to the court to have the proposal declared binding upon all the creditors.

Question 3

The Bankruptcy and Insolvency Act provides for three different kinds of legal proceedings.

Accepted Answer

A) True 
 B)False

Question 4

For five years, Maxine had been regularly receiving the same bill for $850 from Credit Landscaping. She didn't think she should pay it because they botched up the landscaping around her house. However now, after these five years she sends them a $425 check with a note saying; "Take this- it's all you're going to get." This move by Maxine will

Accepted Answer

A)  have no effect on the limitation time period. 
B)  immediately give rise to a legal action. 
C)  get her out of the liability. 
D)  start the time all over again on the statue of limitations. 
E)  spur Credit Landscaping to turn the balance owed over to a collection agency. 
A)  have no effect on the limitation time period. 
B)  immediately give rise to a legal action. 
C)  get her out of the liability. 
D)  start the time all over again on the statue of limitations. 
E)  spur Credit Landscaping to turn the balance owed over to a collection agency.

Question 5

Name three general classes of business to which the Bankruptcy and Insolvency Act does not apply at all.

Accepted Answer

The Act does not app

Question 6

Each of the following parties has a right to file a Builder's lien EXCEPT the one that

Accepted Answer

A)  sells tools or machinery to the contractor. 
B)  delivers goods directly to the contractor's premises and can prove that the goods were used in the construction. 
C)  rents equipment for use on the contract site. 
D)  delivers goods directly to the building site. 
E)  is an architect and has prepared plans for the building. 
A)  sells tools or machinery to the contractor. 
B)  delivers goods directly to the contractor's premises and can prove that the goods were used in the construction. 
C)  rents equipment for use on the contract site. 
D)  delivers goods directly to the building site. 
E)  is an architect and has prepared plans for the building.

Question 7

Under consumer legislation, a consumer who receives unsolicited goods:

Accepted Answer

A)  must pay for the goods only if the consumer wishes to use the goods 
B)  has no obligation 
C)  must keep the goods safe for pickup by the seller for a reasonable length of time 
D)  A and D 
E)  has an obligation to notify the seller within a reasonable length of time 
A)  must pay for the goods only if the consumer wishes to use the goods 
B)  has no obligation 
C)  must keep the goods safe for pickup by the seller for a reasonable length of time 
D)  A and D 
E)  has an obligation to notify the seller within a reasonable length of time

Question 8

What is telemarketing? How does the Competition Act regulate telemarketing?

Accepted Answer

Telemarketing is the practice of using t

Question 9

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

Accepted Answer

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

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Bo Red operated a retail appliance business from premises he was leasing. He sold his complete inventory to a competitor, Mom's Appliance Warehouse Inc. for $100,000. He then carried on business from the premises devoted solely to selling compact discs, records, and cassettes. This business operation was greatly diminished from the previous appliance operation. The creditors of Bo(in relation to the appliance business) are unpaid and just now discover, two months after the sale to Mom's Appliance, that Bo is no longer in the appliance business. What remedies, if any, do Bos appliance creditors have?

Accepted Answer

The appliance creditors can bring an act

Question 12

Regarding bankruptcy, public policy would be primarily concerned with

Accepted Answer

A)  forcing reputable creditors to accept an arrangement designed to save a debt ridden company. 
B)  keeping economic initiative alive. 
C)  the punishment of honest debtors who after bankruptcy simply re- engage in the same questionable business activities. 
D)  placing some limits on who can use bankruptcy proceedings. 
E)  making it easy and inexpensive to apply for bankruptcy. 
A)  forcing reputable creditors to accept an arrangement designed to save a debt ridden company. 
B)  keeping economic initiative alive. 
C)  the punishment of honest debtors who after bankruptcy simply re- engage in the same questionable business activities. 
D)  placing some limits on who can use bankruptcy proceedings. 
E)  making it easy and inexpensive to apply for bankruptcy.

Question 13

In respect to a statute barred debt, under what circumstances is there a presumption of a new promise to pay the whole indebtedness?

Accepted Answer

The presumption of a new promi

Question 14

The following is true regarding secured creditors in bankruptcy proceedings.

Accepted Answer

A)  Through agreement, they may accept the security itself in settlement of their account. 
B)  They immediately follow the preferred creditors in ranking of priority. 
C)  They must pay the other secured creditors any surplus in the value of their security. 
D)  Any deficit in the value of the secured property is directly made- up by the general creditors. 
E)  They are not governed by the Bankruptcy and Solvency Act. 
A)  Through agreement, they may accept the security itself in settlement of their account. 
B)  They immediately follow the preferred creditors in ranking of priority. 
C)  They must pay the other secured creditors any surplus in the value of their security. 
D)  Any deficit in the value of the secured property is directly made- up by the general creditors. 
E)  They are not governed by the Bankruptcy and Solvency Act.

Question 15

Danny is thinking of bankruptcy for his business but so far has not made an assignment nor is the business subject to a receiving order. Yet, because Danny meets all the requirements of bankruptcy, the Bankruptcy and Insolvency Act refers to Daniel as

Accepted Answer

A)  an applicant for bankruptcy. 
B)  a candidate for bankruptcy. 
C)  an insolvent person. 
D)  being bankrupt. 
E)  a consumer debtor. 
A)  an applicant for bankruptcy. 
B)  a candidate for bankruptcy. 
C)  an insolvent person. 
D)  being bankrupt. 
E)  a consumer debtor.

Question 16

The Steamboat Co. is Charlie's sole creditor. He owes them $6500 from his sign painting business. In order to obtain a receiving order, Steamboat must

Accepted Answer

A)  make sure the debtor has committed an act of bankruptcy within the previous six months. 
B)  prove the facts alleged by any other petitioning creditor. 
C)  file a petition with the court in his (the creditor's) judicial district. 
D)  provide the court with the name of the appointed trustee. 
E)  comply with all formalities required by the federal Bank Act. 
A)  make sure the debtor has committed an act of bankruptcy within the previous six months. 
B)  prove the facts alleged by any other petitioning creditor. 
C)  file a petition with the court in his (the creditor's) judicial district. 
D)  provide the court with the name of the appointed trustee. 
E)  comply with all formalities required by the federal Bank Act.

Question 17

Of the preferred creditors, the highest priority of claim is

Accepted Answer

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

Question 18

A bulk sale, as defined by provincial statutes, is a sale

Accepted Answer

A)  of essentially all the stock- in- trade, fixtures, and chattels of a business. 
B)  whose purpose is to deprive creditors of their equitable share in the assets of the company. 
C)  of all goods in process and semi- finished inventories. 
D)  of such a large portion of the assets that the business will cease to operate. 
E)  governed by the federal Bulk Sales Act. 
A)  of essentially all the stock- in- trade, fixtures, and chattels of a business. 
B)  whose purpose is to deprive creditors of their equitable share in the assets of the company. 
C)  of all goods in process and semi- finished inventories. 
D)  of such a large portion of the assets that the business will cease to operate. 
E)  governed by the federal Bulk Sales Act.

Question 19

Bankruptcy falls within the jurisdiction of the provinces in Canada.

Accepted Answer

A) True 
 B)False

Question 20

What is a "vulture fund"? What role can a vulture fund play in helping creditors who are involved in bankruptcy proceedings?

Accepted Answer

A vulture fund involves investors who ar

Exam 31: Creditors Rights

Which of the following statements is true in respect of builders' lien legislation?

Laura had made a commercial proposal (Division I) to her creditors. They have accepted it by a two- thirds vote. The next step is for the trustee to

The Bankruptcy and Insolvency Act provides for three different kinds of legal proceedings.

Name three general classes of business to which the Bankruptcy and Insolvency Act does not apply at all.

Each of the following parties has a right to file a Builder's lien EXCEPT the one that

Under consumer legislation, a consumer who receives unsolicited goods:

What is telemarketing? How does the Competition Act regulate telemarketing?

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

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

Regarding bankruptcy, public policy would be primarily concerned with

In respect to a statute barred debt, under what circumstances is there a presumption of a new promise to pay the whole indebtedness?

The following is true regarding secured creditors in bankruptcy proceedings.

Danny is thinking of bankruptcy for his business but so far has not made an assignment nor is the business subject to a receiving order. Yet, because Danny meets all the requirements of bankruptcy, the Bankruptcy and Insolvency Act refers to Daniel as

The Steamboat Co. is Charlie's sole creditor. He owes them $6500 from his sign painting business. In order to obtain a receiving order, Steamboat must

Of the preferred creditors, the highest priority of claim is

A bulk sale, as defined by provincial statutes, is a sale

Bankruptcy falls within the jurisdiction of the provinces in Canada.

What is a "vulture fund"? What role can a vulture fund play in helping creditors who are involved in bankruptcy proceedings?

Law and Society

The Machinery of Justice

The Law of Torts

Professional Liability

Formation of a Contract: Offer and Acceptance

Formation of a Contract: Consideration, and Intention to Create Legal Relations

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

Grounds Upon Which a Contract May Be Impeached: Mistake

Grounds Upon Which a Contract May Be Impeached: Misrepresentation, Undue Influence, and Duress

The Requirement of Writing

The Interpretation of Contracts

Privity of Contract and the Assignment of Contractual Rights

The Discharge of Contracts

The Effect of Breach

Remedies for Breach

Sale of Goods

Leasing and Bailment

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

The Internal Affairs of Corporations

The External Responsibilities of a Corporation

Secured Transactions

Government Regulation of Business

International Business Transactions

Electronic Commerce

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