Question 1

Liquidated debts are debts that are indefinite, or not fixed, in amount.

Accepted Answer

A) True 
 B)False

Question 2

Sasha's debt to Tully is past due. Tully brings a legal action against Sasha to collect the debt. To ensure that a judgment in Tully's favor will be collectible, he asks the court to order the seizure of Sasha's property. This is a request for​

Accepted Answer

A)  ​a contract of suretyship. 
B)  ​an order that would violate most state laws. 
C)  ​a writ of attachment. 
D)  ​an order of receivership. 
A)  ​a contract of suretyship. 
B)  ​an order that would violate most state laws. 
C)  ​a writ of attachment. 
D)  ​an order of receivership.

Question 3

Denise borrows $90,000 from Clear Lake Credit Union to buy a home. Denise loses her job and fails to make payments on the mortgage, but assures Clear Lake Credit that she will soon secure a new job. The lender agrees to postpone the payments. This is​

Accepted Answer

A)  ​a right of redemption. 
B)  ​a forbearance. 
C)  ​a short sale. 
D)  ​a workout agreement. 
A)  ​a right of redemption. 
B)  ​a forbearance. 
C)  ​a short sale. 
D)  ​a workout agreement.

Question 4

Fact Pattern 19-1
Petro Oil Refinery asks Quality Bank for a loan to increase its oil inventory. Quality requires Robin, Petro's president, sign a personal guaranty to pay the debt if Petro defaults. Meanwhile, to sell fifty barrels of refined oil to Slick Lubricants, Inc., Petro asks its outside accountant Tina to co-sign a credit application.
-Refer to Fact Pattern 19-1.If Tina signs the application but fails to condition her signature on Petro's agreement to pursue its legal remedies against Slick before looking to her, then Tina is​

Accepted Answer

A)  ​a surety. 
B)  ​a lienor. 
C)  ​a guarantor. 
D)  ​a creditor. 
A)  ​a surety. 
B)  ​a lienor. 
C)  ​a guarantor. 
D)  ​a creditor.

Question 5

A debtor's vehicle is never exempt from satisfaction of a judgment debt.

Accepted Answer

A) True 
 B)False

Question 6

A default occurs when a debtor fails to pay a creditor as promised.

Accepted Answer

A) True 
 B)False

Question 7

Raoul is a surety for Suzie's loan from Turnkey Credit, Inc. Raoul's right to "step into the shoes" of Turnkey, after paying Suzie's debt, and exercise any of the Turnkey's rights against Suzie is the right of​

Accepted Answer

A)  ​contribution. 
B)  ​redemption. 
C)  ​reimbursement. 
D)  ​subrogation. 
A)  ​contribution. 
B)  ​redemption. 
C)  ​reimbursement. 
D)  ​subrogation.

Question 8

Loni delivers her Mazda to be repaired at Nile's Body Shop. Loni agrees to pay cash. Nile performs, but Loni does not pay. Nile tells Loni that he will keep the car until she pays. This is​

Accepted Answer

A)  ​a judicial lien. 
B)  ​a mechanic's lien. 
C)  ​an artisan's lien. 
D)  ​a violation of most states' laws. 
A)  ​a judicial lien. 
B)  ​a mechanic's lien. 
C)  ​an artisan's lien. 
D)  ​a violation of most states' laws.

Question 9

An attachment is a court-ordered seizure and taking into custody of property before a judgment is obtained on a past-due debt.

Accepted Answer

A) True 
 B)False

Question 10

No state allows a defaulting debtor to redeem the property before a foreclosure sale.

Accepted Answer

A) True 
 B)False

Question 11

A creditor's surrender of collateral to a debtor without the guarantor's consent can reduce the guarantor's obligation.

Accepted Answer

A) True 
 B)False

Question 12

Personal property that is most often exempt from satisfaction of judgment debts does not include equipment that the debtor uses in a business or trade.

Accepted Answer

A) True 
 B)False

Exam 19: Creditors Rights and Remedies

Liquidated debts are debts that are indefinite, or not fixed, in amount.

Sasha's debt to Tully is past due. Tully brings a legal action against Sasha to collect the debt. To ensure that a judgment in Tully's favor will be collectible, he asks the court to order the seizure of Sasha's property. This is a request for​

Denise borrows $90,000 from Clear Lake Credit Union to buy a home. Denise loses her job and fails to make payments on the mortgage, but assures Clear Lake Credit that she will soon secure a new job. The lender agrees to postpone the payments. This is​

A debtor's vehicle is never exempt from satisfaction of a judgment debt.

A default occurs when a debtor fails to pay a creditor as promised.

Raoul is a surety for Suzie's loan from Turnkey Credit, Inc. Raoul's right to "step into the shoes" of Turnkey, after paying Suzie's debt, and exercise any of the Turnkey's rights against Suzie is the right of​

Loni delivers her Mazda to be repaired at Nile's Body Shop. Loni agrees to pay cash. Nile performs, but Loni does not pay. Nile tells Loni that he will keep the car until she pays. This is​

An attachment is a court-ordered seizure and taking into custody of property before a judgment is obtained on a past-due debt.

No state allows a defaulting debtor to redeem the property before a foreclosure sale.

A creditor's surrender of collateral to a debtor without the guarantor's consent can reduce the guarantor's obligation.

Personal property that is most often exempt from satisfaction of judgment debts does not include equipment that the debtor uses in a business or trade.

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Digital Update:the Exploding World of Digital Property

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Sasha's debt to Tully is past due. Tully brings a legal action against Sasha to collect the debt. To ensure that a judgment in Tully's favor will be collectible, he asks the court to order the seizure of Sasha's property. This is a request for

Denise borrows $90,000 from Clear Lake Credit Union to buy a home. Denise loses her job and fails to make payments on the mortgage, but assures Clear Lake Credit that she will soon secure a new job. The lender agrees to postpone the payments. This is

Raoul is a surety for Suzie's loan from Turnkey Credit, Inc. Raoul's right to "step into the shoes" of Turnkey, after paying Suzie's debt, and exercise any of the Turnkey's rights against Suzie is the right of

Loni delivers her Mazda to be repaired at Nile's Body Shop. Loni agrees to pay cash. Nile performs, but Loni does not pay. Nile tells Loni that he will keep the car until she pays. This is