Question 1

Once the bankrupt has been discharged, explain his status.

Accepted Answer

He is free of debt and is no longer responsible for the debts and obligations he had prior to the bankruptcy process. There are exceptions (student loans, family maintenance payments).

Question 2

Holtz hires Joe, a builder, to convert his attic into an apartment so that Holtz's mother can move in. Joe employs two carpenters, an electrician, and a plumber to do the actual work. When making payments to Joe, Holtz holds back the 10% required by statute. After waiting the legislated minimum period, Holtz discovers that several liens have been registered against his property. It turns out that Joe failed to pay the various subcontractors for their work. Which one of the following statements best describes Holtz's position?

Accepted Answer

A)  Holtz has no liability to any of those involved with the job except Joe, because he has a contract only with Joe. 
B)  Holtz and Joe are equally liable to the lien claimants because of recent amendments to the builders' lien legislation. 
C)  Holtz bears the sole liability to the lien claimants for any debts arising out of their work on his property. 
D)  Holtz's mother will be liable to both Holtz and the lien claimants, as she will be taking the benefit of the renovations. 
E)  If Holtz has complied with the statutory requirements, his obligation will be limited to the amount of the holdback, even if the amount owed under the liens far greater. 
A)  Holtz has no liability to any of those involved with the job except Joe, because he has a contract only with Joe. 
B)  Holtz and Joe are equally liable to the lien claimants because of recent amendments to the builders' lien legislation. 
C)  Holtz bears the sole liability to the lien claimants for any debts arising out of their work on his property. 
D)  Holtz's mother will be liable to both Holtz and the lien claimants, as she will be taking the benefit of the renovations. 
E)  If Holtz has complied with the statutory requirements, his obligation will be limited to the amount of the holdback, even if the amount owed under the liens far greater. E

Question 3

Which one of the following is false with respect to the Builders' Lien Act?

Accepted Answer

A)  The lien claim is required to be filed at the appropriate registry in order to establish a claim against the property. 
B)  If a lien claimant files his lien within the time set, he can be assured that he will collect the full amount of his claim. 
C)  The Builders' Lien Act gives some protection for those in the building trades, and these include contractors, subcontractors, workers, and materialmen. 
D)  If a lien claimant loses the right to file a lien, he still has the right to sue the party who failed to pay him for breach of contract. 
E)  A lien claimant has a limited period of time from filing his lien within which to begin his court action. 
A)  The lien claim is required to be filed at the appropriate registry in order to establish a claim against the property. 
B)  If a lien claimant files his lien within the time set, he can be assured that he will collect the full amount of his claim. 
C)  The Builders' Lien Act gives some protection for those in the building trades, and these include contractors, subcontractors, workers, and materialmen. 
D)  If a lien claimant loses the right to file a lien, he still has the right to sue the party who failed to pay him for breach of contract. 
E)  A lien claimant has a limited period of time from filing his lien within which to begin his court action. B

Question 4

Explain the purpose of the bankruptcy process.

Accepted Answer

The bankruptcy process is intended to en

Question 5

Provide an example of legislation that gives the federal government priority over all other creditors, including secured creditors.

Accepted Answer

Examples include the Income Ta

Question 6

Distinguish between receivership and bankruptcy where corporations are concerned.

Accepted Answer

Bankruptcy is the formal process done un

Question 7

A security not fixed on any specific assets is called a security interest ________.

Accepted Answer

on all present and a

Question 8

Joe worked as a subcontractor for Harry in framing a house owned by Sam. When it became apparent to Joe that he was not going to be paid by Harry, what rights did Joe have under these circumstances?

Accepted Answer

He could file a buil

Question 9

What is the role of the Superintendent of Bankruptcy?

Accepted Answer

The Superintendent of Bankrupt

Question 10

Which one of the following actions by a debtor constitutes an act of bankruptcy?

Accepted Answer

A)  A fraudulent conveyance of liabilities to one of the creditors 
B)  A fraudulent transfer of money or assets 
C)  Assignment of liabilities to a trustee 
D)  Having more debts than assets 
E)  Generally meeting liabilities as they become due 
A)  A fraudulent conveyance of liabilities to one of the creditors 
B)  A fraudulent transfer of money or assets 
C)  Assignment of liabilities to a trustee 
D)  Having more debts than assets 
E)  Generally meeting liabilities as they become due

Question 11

A Division I proposal is available only to consumer debtors with less than $75,000 in claims against them.

Accepted Answer

A) True 
 B)False

Question 12

If you want to buy a car from a private party (other than a dealer), which of the following is false?

Accepted Answer

A)  If you request a search and the Personal Property Registry states that the car is free and clear of liens and encumbrances, then title is clear. 
B)  If the seller tells you that the car is free and clear, and two months later a holder of a properly perfected and attached security interest claims a right to the car, you could lose the car. 
C)  Even if both the seller and the Personal Property Registry indicate to you that the car's title is clear, you could still lose it to a third party. 
D)  If the seller indicates to you that the title is clear, but after the sale the car is seized by someone with the legal right to do so, you could still sue the seller. 
E)  If the seller makes no representations whatsoever about the car and the car is seized by a creditor, you can still sue the seller because he had an obligation to deliver good title. 
A)  If you request a search and the Personal Property Registry states that the car is free and clear of liens and encumbrances, then title is clear. 
B)  If the seller tells you that the car is free and clear, and two months later a holder of a properly perfected and attached security interest claims a right to the car, you could lose the car. 
C)  Even if both the seller and the Personal Property Registry indicate to you that the car's title is clear, you could still lose it to a third party. 
D)  If the seller indicates to you that the title is clear, but after the sale the car is seized by someone with the legal right to do so, you could still sue the seller. 
E)  If the seller makes no representations whatsoever about the car and the car is seized by a creditor, you can still sue the seller because he had an obligation to deliver good title.

Question 13

Bret decided to enlarge the fishpond in his backyard. He contracted with a general contractor, Conan. Conan subcontracted with Darson to do the excavation and with Ericson to do the plumbing. Conan's own workers did the masonry work. Bret made "progress payments" to Conan, since Conan said such payments were necessary to pay his workers and subcontractors. Bret learned that the workers and subcontractors had not been paid and Conan had used the payments to pay debts unrelated to the job on Bret's pond. Which of the following best describes Bret's position?

Accepted Answer

A)  Because of the doctrine of privity of contract, Bret will not face any liability whatsoever. 
B)  If Bret held back the 10% required by statute from his payments to Conan, but then later paid it out despite liens having been filed against his property, Bret would still face no liability as he technically complied with the legislation. 
C)  Bret will be liable for all unpaid amounts because the work was on his land and for his benefit. 
D)  If Bret held back the 10% required by statute from his payments to Conan, his obligation would generally be limited to the amount of that holdback. 
E)  Bret had no obligation to hold back any amount of the payments made to Conan as the hold back requirement doesn't apply to progress payments. 
A)  Because of the doctrine of privity of contract, Bret will not face any liability whatsoever. 
B)  If Bret held back the 10% required by statute from his payments to Conan, but then later paid it out despite liens having been filed against his property, Bret would still face no liability as he technically complied with the legislation. 
C)  Bret will be liable for all unpaid amounts because the work was on his land and for his benefit. 
D)  If Bret held back the 10% required by statute from his payments to Conan, his obligation would generally be limited to the amount of that holdback. 
E)  Bret had no obligation to hold back any amount of the payments made to Conan as the hold back requirement doesn't apply to progress payments.

Question 14

The debtor usually retains possession of the goods used to secure a debt while the creditor has the right to seize them for default.

Accepted Answer

A) True 
 B)False

Question 15

Discuss the bankruptcy and insolvency process from the point of view of the creditor, indicating how that creditor's interests are or are not protected.

Accepted Answer

Bankruptcy involves the assets of the de

Question 16

Explain the purpose of the Personal Property Security Act.

Accepted Answer

Its purpose is to bring all of

Question 17

Distinguish between attachment and perfection under the Personal Property Security Act.

Accepted Answer

The creditor's rights under the Personal

Question 18

What is a bankruptcy offence? Give an example.

Accepted Answer

A bankruptcy offence is some act on the

Question 19

What is the effect of a payment made in preference to one creditor over another?

Accepted Answer

The answer of What is the effect of a payment...

Question 20

Both a chattel and a chose in action can be used to secure a debt.

Accepted Answer

A) True 
 B)False

Once the bankrupt has been discharged, explain his status.

Which one of the following is false with respect to the Builders' Lien Act?

Explain the purpose of the bankruptcy process.

Provide an example of legislation that gives the federal government priority over all other creditors, including secured creditors.

Distinguish between receivership and bankruptcy where corporations are concerned.

A security not fixed on any specific assets is called a security interest ________.

Joe worked as a subcontractor for Harry in framing a house owned by Sam. When it became apparent to Joe that he was not going to be paid by Harry, what rights did Joe have under these circumstances?

What is the role of the Superintendent of Bankruptcy?

Which one of the following actions by a debtor constitutes an act of bankruptcy?

A Division I proposal is available only to consumer debtors with less than $75,000 in claims against them.

If you want to buy a car from a private party (other than a dealer), which of the following is false?

The debtor usually retains possession of the goods used to secure a debt while the creditor has the right to seize them for default.

Discuss the bankruptcy and insolvency process from the point of view of the creditor, indicating how that creditor's interests are or are not protected.

Explain the purpose of the Personal Property Security Act.

Distinguish between attachment and perfection under the Personal Property Security Act.

What is a bankruptcy offence? Give an example.

What is the effect of a payment made in preference to one creditor over another?

Both a chattel and a chose in action can be used to secure a debt.

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes: the Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contract: Consensus and Consideration

The Elements of a Contract: Capacity, Legality, and Intention

Factors Affecting the Contractual Relationship

The End of the Contractual Relationship

Agency and Partnership

Corporations

Employment

Intellectual Property

Real and Personal Property and Protection of the Environment

Sales and Consumer Protection

Filters

Exam 15: Priority of Creditors

Once the bankrupt has been discharged, explain his status.

Which one of the following is false with respect to the Builders' Lien Act?

Explain the purpose of the bankruptcy process.

Provide an example of legislation that gives the federal government priority over all other creditors, including secured creditors.

Distinguish between receivership and bankruptcy where corporations are concerned.

A security not fixed on any specific assets is called a security interest ________.

Joe worked as a subcontractor for Harry in framing a house owned by Sam. When it became apparent to Joe that he was not going to be paid by Harry, what rights did Joe have under these circumstances?

What is the role of the Superintendent of Bankruptcy?

Which one of the following actions by a debtor constitutes an act of bankruptcy?

A Division I proposal is available only to consumer debtors with less than $75,000 in claims against them.

If you want to buy a car from a private party (other than a dealer), which of the following is false?

The debtor usually retains possession of the goods used to secure a debt while the creditor has the right to seize them for default.

Discuss the bankruptcy and insolvency process from the point of view of the creditor, indicating how that creditor's interests are or are not protected.

Explain the purpose of the Personal Property Security Act.

Distinguish between attachment and perfection under the Personal Property Security Act.

What is a bankruptcy offence? Give an example.

What is the effect of a payment made in preference to one creditor over another?

Both a chattel and a chose in action can be used to secure a debt.

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes: the Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contract: Consensus and Consideration

The Elements of a Contract: Capacity, Legality, and Intention

Factors Affecting the Contractual Relationship

The End of the Contractual Relationship

Agency and Partnership

Corporations

Employment

Intellectual Property

Real and Personal Property and Protection of the Environment

Sales and Consumer Protection

Filters