Question 1

Identify which of the following statements is true about secured transactions in provinces having a personal property security act.

Accepted Answer

A)  This kind of transaction, which formerly was legal, is now prohibited by law in all provinces. 
B)  Various kinds of secured transactions, such as conditional sales, chattel mortgages, etc., are regulated by their own distinct statutes. 
C)  An assignment of an account receivable does not qualify as a security arrangement because no tangible property is involved. 
D)  All kinds of security arrangements involving personal property as collateral now come under one statute. 
E)  Only tangible personal property can be used as security. 
A)  This kind of transaction, which formerly was legal, is now prohibited by law in all provinces. 
B)  Various kinds of secured transactions, such as conditional sales, chattel mortgages, etc., are regulated by their own distinct statutes. 
C)  An assignment of an account receivable does not qualify as a security arrangement because no tangible property is involved. 
D)  All kinds of security arrangements involving personal property as collateral now come under one statute. 
E)  Only tangible personal property can be used as security.

Question 2

Real and personal property can be used to secure a loan.

Accepted Answer

A) True 
 B)False

Question 3

Legislation and the principles of contract and common law primarily protect the interests of the debtor in the event of a default.

Accepted Answer

A) True 
 B)False

Question 4

Discuss alternatives to bankruptcy and why these alternatives might be preferable to bankruptcy itself.

Accepted Answer

To avoid bankruptcy, students should ide

Question 5

Explain two methods for a debtor becoming bankrupt.

Accepted Answer

Voluntary assignment is where the debtor

Question 6

In a creditor/debtor transaction, explain the purpose of security and how that purpose can be realized.

Accepted Answer

This requires that students understand a

Question 7

Explain what happens when the owner of property fails to hold back the appropriate amount when making payments to the general contractor.

Accepted Answer

He can be required to pay out, in additi

Question 8

Greg told Rick that he would be willing to pay a high rate of interest for a two-month loan of $2000. Rick agreed to lend Greg this amount at an annual rate of 20%, repayable March 1, 2016. Greg agreed to these terms. Greg did not pay on March 1. Rick learned that Greg had recently completed some work for Martinson for which Greg was owed $2000. Now that Greg is in default, which of the following is false?

Accepted Answer

A)  Rick could sue Greg for breach of contract. 
B)  Rick could execute against Greg even if Rick had not obtained judgment against him. 
C)  Rick could not place Greg into bankruptcy unless Greg had committed an act of bankruptcy. 
D)  If Rick obtained a judgment against Greg, he could compel him to be examined about his income, property, and debts. 
E)  Once he has obtained judgment, Rick can garnishee the money owed to Greg by Martinson. 
A)  Rick could sue Greg for breach of contract. 
B)  Rick could execute against Greg even if Rick had not obtained judgment against him. 
C)  Rick could not place Greg into bankruptcy unless Greg had committed an act of bankruptcy. 
D)  If Rick obtained a judgment against Greg, he could compel him to be examined about his income, property, and debts. 
E)  Once he has obtained judgment, Rick can garnishee the money owed to Greg by Martinson.

Question 9

Explain how the rights of the creditors are protected under bankruptcy legislation.

Accepted Answer

A trustee in bankruptcy is appointed and

Question 10

Which of the following is false with regard to property?

Accepted Answer

A)  Both real and personal property can be given as security to a creditor that he will be repaid. 
B)  Real property consists of land but does not include the buildings on that land. 
C)  Personal property includes intangible rights. 
D)  Personal property includes chattels. 
E)  Real property includes fixtures. 
A)  Both real and personal property can be given as security to a creditor that he will be repaid. 
B)  Real property consists of land but does not include the buildings on that land. 
C)  Personal property includes intangible rights. 
D)  Personal property includes chattels. 
E)  Real property includes fixtures.

Question 11

Which one of the following is true with respect to the builder's lien acts?

Accepted Answer

A)  Various provincial statutes give suppliers of work and materials a claim for payment against the land enhanced by their services. 
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)  Compliance with the statutory holdback provisions is required, but gives an owner no protection against potential lien claims. 
D)  If a lien claimant loses the right to file a lien, he also loses the right to sue for breach of contract. 
E)  A lien claimant owed money by a general contractor can choose to pursue either the general contractor or the property owner for the full amount of the claim. 
A)  Various provincial statutes give suppliers of work and materials a claim for payment against the land enhanced by their services. 
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)  Compliance with the statutory holdback provisions is required, but gives an owner no protection against potential lien claims. 
D)  If a lien claimant loses the right to file a lien, he also loses the right to sue for breach of contract. 
E)  A lien claimant owed money by a general contractor can choose to pursue either the general contractor or the property owner for the full amount of the claim.

Question 12

You are in debt to three creditors for $200,000, and the debt is increasing because you are not able to meet your monthly financial obligations. Which of the following is false with regard to your situation?

Accepted Answer

A)  It is illegal for you to transfer assets to a spouse or friend to shield them from your creditors. 
B)  If you become bankrupt, your assets are conveyed to a trustee in bankruptcy who deals with them for the benefit of your creditors. 
C)  If you become bankrupt, you are restricted from carrying on certain activities until you are discharged. 
D)  If your long-time financial well-being would be served by bankruptcy, you must ask your creditors to begin the procedure, since you cannot begin it yourself. 
E)  The Bankruptcy and Insolvency Act provides a procedure to avoid bankruptcy by making a proposal to your creditors for satisfying their claims. 
A)  It is illegal for you to transfer assets to a spouse or friend to shield them from your creditors. 
B)  If you become bankrupt, your assets are conveyed to a trustee in bankruptcy who deals with them for the benefit of your creditors. 
C)  If you become bankrupt, you are restricted from carrying on certain activities until you are discharged. 
D)  If your long-time financial well-being would be served by bankruptcy, you must ask your creditors to begin the procedure, since you cannot begin it yourself. 
E)  The Bankruptcy and Insolvency Act provides a procedure to avoid bankruptcy by making a proposal to your creditors for satisfying their claims.

Question 13

Why is the distinction between a guarantee and an indemnity important?

Accepted Answer

In some provinces, a guarantee

Question 14

Which of the following is the consequence of an unpaid subcontractor failing to file his lien on time? The owner had contracted with the general contractor who in turn had contracted with this subcontractor.

Accepted Answer

A)  He can submit documents giving his reason and he will be allowed to file the lien late. 
B)  He will lose all of his remedies. 
C)  He will lose his right to place a charge against the owner's property, but he can sue the owner directly for the amount owed him, because his work and materials went into the owner's house. 
D)  He would lose his right to place a charge against the owner's property, but he can sue the contractor on the contract. 
E)  He loses his right to claim against the building but can sue the owner of the property directly. 
A)  He can submit documents giving his reason and he will be allowed to file the lien late. 
B)  He will lose all of his remedies. 
C)  He will lose his right to place a charge against the owner's property, but he can sue the owner directly for the amount owed him, because his work and materials went into the owner's house. 
D)  He would lose his right to place a charge against the owner's property, but he can sue the contractor on the contract. 
E)  He loses his right to claim against the building but can sue the owner of the property directly.

Question 15

Consider the following statements about the use of personal property as security for a creditor in a creditor-debtor transaction. Indicate the false statement.

Accepted Answer

A)  If the transaction involves the use of consumer goods as collateral, upon default of payment by the debtor, the creditor can seize the goods and sell them, but also always retains the right to sue the debtor on his personal covenant to pay for any deficiency. 
B)  Regardless of the type of personal property involved, whether tangible or intangible, as long as it is being used as security then the transaction is governed by the Personal Property Security Act, and therefore an unpaid creditor may be able to repossess them. 
C)  Real estate professionals need to be aware of the Personal Property Security Act because items that constitute fixtures under real property law may also constitute chattel security, and thus an unpaid creditor may be able to repossess them. 
D)  Before a creditor who has been promised an interest in personal property as security can claim priority rights, two processes must have taken place: the security interest must have attached to the collateral item, and the security must have been perfected. 
E)  If the required procedures have taken place, a potential buyer from an unscrupulous debtor who has already given personal property as security will be protected; i.e., the creditor will either have registered his interest in the Personal Property Registry or will have actual possession of the collateral. 
A)  If the transaction involves the use of consumer goods as collateral, upon default of payment by the debtor, the creditor can seize the goods and sell them, but also always retains the right to sue the debtor on his personal covenant to pay for any deficiency. 
B)  Regardless of the type of personal property involved, whether tangible or intangible, as long as it is being used as security then the transaction is governed by the Personal Property Security Act, and therefore an unpaid creditor may be able to repossess them. 
C)  Real estate professionals need to be aware of the Personal Property Security Act because items that constitute fixtures under real property law may also constitute chattel security, and thus an unpaid creditor may be able to repossess them. 
D)  Before a creditor who has been promised an interest in personal property as security can claim priority rights, two processes must have taken place: the security interest must have attached to the collateral item, and the security must have been perfected. 
E)  If the required procedures have taken place, a potential buyer from an unscrupulous debtor who has already given personal property as security will be protected; i.e., the creditor will either have registered his interest in the Personal Property Registry or will have actual possession of the collateral.

Question 16

If no builders' liens are registered within the specified time, the owner gives the holdback to the general contractor.

Accepted Answer

A) True 
 B)False

Question 17

Discuss situations in which a secured creditor may opt not to seize property used as security and the rationale for taking this approach.

Accepted Answer

When a debtor defaults, a secured credit

Question 18

Explain what is meant by a "chose in action."

Accepted Answer

A chose in action is a non-tan

Question 19

In Re Fancy, a businessman knew that he was facing substantial losses from pending litigation. Shortly before declaring bankruptcy, he transferred his interest in the matrimonial home to his wife. What was the result?

Accepted Answer

A)  The Court reversed the transfer, because it was unnecessary: The wife would automatically receive the matrimonial home once the bankruptcy took effect. 
B)  The Court allowed the transfer, determining the wife was not a co-conspirator. 
C)  The Court allowed the transfer, because transfers between spouses are exempt under the Bankruptcy and Insolvency Act. 
D)  The Court reversed the transfer, determining it was a prohibited settlement under the Bankruptcy and Insolvency Act. 
E)  The Court declined to exercise jurisdiction because a bankrupt has no status to appear in court. 
A)  The Court reversed the transfer, because it was unnecessary: The wife would automatically receive the matrimonial home once the bankruptcy took effect. 
B)  The Court allowed the transfer, determining the wife was not a co-conspirator. 
C)  The Court allowed the transfer, because transfers between spouses are exempt under the Bankruptcy and Insolvency Act. 
D)  The Court reversed the transfer, determining it was a prohibited settlement under the Bankruptcy and Insolvency Act. 
E)  The Court declined to exercise jurisdiction because a bankrupt has no status to appear in court.

Question 20

Explain the purpose of the Fraudulent Preferences Act (name will vary from province to province).

Accepted Answer

This act prohibits the debtor

Identify which of the following statements is true about secured transactions in provinces having a personal property security act.

Real and personal property can be used to secure a loan.

Legislation and the principles of contract and common law primarily protect the interests of the debtor in the event of a default.

Discuss alternatives to bankruptcy and why these alternatives might be preferable to bankruptcy itself.

Explain two methods for a debtor becoming bankrupt.

In a creditor/debtor transaction, explain the purpose of security and how that purpose can be realized.

Explain what happens when the owner of property fails to hold back the appropriate amount when making payments to the general contractor.

Explain how the rights of the creditors are protected under bankruptcy legislation.

Which of the following is false with regard to property?

Which one of the following is true with respect to the builder's lien acts?

You are in debt to three creditors for $200,000, and the debt is increasing because you are not able to meet your monthly financial obligations. Which of the following is false with regard to your situation?

Why is the distinction between a guarantee and an indemnity important?

Which of the following is the consequence of an unpaid subcontractor failing to file his lien on time? The owner had contracted with the general contractor who in turn had contracted with this subcontractor.

Consider the following statements about the use of personal property as security for a creditor in a creditor-debtor transaction. Indicate the false statement.

If no builders' liens are registered within the specified time, the owner gives the holdback to the general contractor.

Discuss situations in which a secured creditor may opt not to seize property used as security and the rationale for taking this approach.

Explain what is meant by a "chose in action."

In Re Fancy, a businessman knew that he was facing substantial losses from pending litigation. Shortly before declaring bankruptcy, he transferred his interest in the matrimonial home to his wife. What was the result?

Explain the purpose of the Fraudulent Preferences Act (name will vary from province to province).

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

Identify which of the following statements is true about secured transactions in provinces having a personal property security act.

Real and personal property can be used to secure a loan.

Legislation and the principles of contract and common law primarily protect the interests of the debtor in the event of a default.

Discuss alternatives to bankruptcy and why these alternatives might be preferable to bankruptcy itself.

Explain two methods for a debtor becoming bankrupt.

In a creditor/debtor transaction, explain the purpose of security and how that purpose can be realized.

Explain what happens when the owner of property fails to hold back the appropriate amount when making payments to the general contractor.

Explain how the rights of the creditors are protected under bankruptcy legislation.

Which of the following is false with regard to property?

Which one of the following is true with respect to the builder's lien acts?

You are in debt to three creditors for $200,000, and the debt is increasing because you are not able to meet your monthly financial obligations. Which of the following is false with regard to your situation?

Why is the distinction between a guarantee and an indemnity important?

Which of the following is the consequence of an unpaid subcontractor failing to file his lien on time? The owner had contracted with the general contractor who in turn had contracted with this subcontractor.

Consider the following statements about the use of personal property as security for a creditor in a creditor-debtor transaction. Indicate the false statement.

If no builders' liens are registered within the specified time, the owner gives the holdback to the general contractor.

Discuss situations in which a secured creditor may opt not to seize property used as security and the rationale for taking this approach.

Explain what is meant by a "chose in action."

In Re Fancy, a businessman knew that he was facing substantial losses from pending litigation. Shortly before declaring bankruptcy, he transferred his interest in the matrimonial home to his wife. What was the result?

Explain the purpose of the Fraudulent Preferences Act (name will vary from province to province).

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