Question 1

What is the effect if a debtor fraudulently transfers property to a bona fide purchaser for value?

Accepted Answer

The transa

Question 2

Once the bankrupt has been discharged,explain his status.

Accepted Answer

He is free of debt and is no l

Question 3

Which of the following describes the Bankruptcy and Insolvency Act?

Accepted Answer

A)  Determines process by which debtors convey their assets to a trustee in bankruptcy who distributes them to the creditors. 
B)  Provides alternative to criminal charges. 
C)  Allow persons with impossible burdens of debt to discharge all of their debts. 
D)  Protects the interests of debtors. 
E)  Helps incorporated companies after discharge to carry on without the same burden of debt 
A)  Determines process by which debtors convey their assets to a trustee in bankruptcy who distributes them to the creditors. 
B)  Provides alternative to criminal charges. 
C)  Allow persons with impossible burdens of debt to discharge all of their debts. 
D)  Protects the interests of debtors. 
E)  Helps incorporated companies after discharge to carry on without the same burden of debt

Question 4

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 5

In secured transactions-type legislation,such as a Conditional Sale Act,the Bills of Sale Act,the Personal Property Security Act,etc.,what is the purpose of a registration?

Accepted Answer

The purpose of registration is to notify

Question 6

In Re Fancy,a businessperson 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 7

Here comes your neighbour Max,who wants to ask you more questions about buying an Apple computer for use at home under a conditional sales contract.Which one of the following statements told to him at work is true?

Accepted Answer

A)  If Max has paid two-thirds of the amount owing under the conditional sale contract, the conditional seller could never seize the computer, even if Max were in default. 
B)  If Max is in default and the conditional seller seizes the computer, the relevant statute provides that it can be sold immediately with no further notice to Max. 
C)  Max's rights would be much greater and his obligations fewer if he bought it under a chattel mortgage rather than a conditional sales contract. 
D)  If Max were in default, the conditional seller could sell the computer and keep all the proceeds of that sale, even if they were greater than the debt and costs. 
E)  In a conditional sales contract, the result of satisfying the condition is that the lien or charge will be removed from the goods used as security. 
A)  If Max has paid two-thirds of the amount owing under the conditional sale contract, the conditional seller could never seize the computer, even if Max were in default. 
B)  If Max is in default and the conditional seller seizes the computer, the relevant statute provides that it can be sold immediately with no further notice to Max. 
C)  Max's rights would be much greater and his obligations fewer if he bought it under a chattel mortgage rather than a conditional sales contract. 
D)  If Max were in default, the conditional seller could sell the computer and keep all the proceeds of that sale, even if they were greater than the debt and costs. 
E)  In a conditional sales contract, the result of satisfying the condition is that the lien or charge will be removed from the goods used as security.

Question 8

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 9

When a mortgage is taken on personal property in a PPSA jurisdiction,the borrower temporarily transfers title to the lender.

Accepted Answer

A) True 
 B)False

Question 10

A company named Printers World Ltd.bought a $9000 plotter under a conditional sale contract and,because of business reverses,is unable to make the payments.Which of the following is accurate with respect to the legal position of the parties?

Accepted Answer

A)  The seller could seize the goods only if it obtained a court order. 
B)  The seller could seize the goods without a court order only if it had properly registered the conditional sale contract. 
C)  The seller could seize the goods but, before resale can take place, the debtor must be given notice and an opportunity to redeem. 
D)  The seller could only seize the goods, and could not instead opt to sue the company. 
E)  The seller could seize and sell the same day because it had already waited three months after default before taking any action. 
A)  The seller could seize the goods only if it obtained a court order. 
B)  The seller could seize the goods without a court order only if it had properly registered the conditional sale contract. 
C)  The seller could seize the goods but, before resale can take place, the debtor must be given notice and an opportunity to redeem. 
D)  The seller could only seize the goods, and could not instead opt to sue the company. 
E)  The seller could seize and sell the same day because it had already waited three months after default before taking any action.

Question 11

Compare assignment of contractual rights with negotiation of a negotiable instrument,indicating the advantages and disadvantages of each.

Accepted Answer

This can be a relatively short response,

Question 12

Elizabeth gave a guarantee to the Bank in support of a loan to Tomasz.Over the next few years,the Bank and Tomasz made a number of alterations to the loan agreement.The effect of these changes was to significantly increase the amount owing to the Bank.Elizabeth had no notice or knowledge of these changes,nor she did not consent to any such changes.What is the likely result?

Accepted Answer

A)  Elizabeth is bound by the changes to the loan, because guarantees are, by their nature, continuing. 
B)  Guarantees are a mere formality; only Tomasz has obligations to the Bank. 
C)  The guarantees are likely to be invalid and unenforceable against Elizabeth. 
D)  A guarantee is executed under seal, therefore it will be presumed valid regardless of defect. 
E)  The failure to notify Elizabeth would release both Elizabeth and Tomasz from their obligations. 
A)  Elizabeth is bound by the changes to the loan, because guarantees are, by their nature, continuing. 
B)  Guarantees are a mere formality; only Tomasz has obligations to the Bank. 
C)  The guarantees are likely to be invalid and unenforceable against Elizabeth. 
D)  A guarantee is executed under seal, therefore it will be presumed valid regardless of defect. 
E)  The failure to notify Elizabeth would release both Elizabeth and Tomasz from their obligations.

Question 13

Owen bought a car from Ace Fancy Cars Ltd.,on time.The salesman claimed that it had a new engine and new transmission.Security was registered against the vehicle under the Personal Property Security Act,and Owen's father was required to sign a guarantee to support the debt.Two months later,the car broke down,and upon inspection,it was discovered that,in fact,a used motor and transmission had been installed,not a new one.Owen refused to make any further payments and demanded his money back.The car dealership ignored its right to repossess the vehicle and demanded payment from Owen's father.Explain Owen's father's rights in these circumstances.

Accepted Answer

Owen's father has the same defences avai

Question 14

Which of the following is governed by federal statute and thus has rules common to all of Canada?

Accepted Answer

A)  conditional sale contracts 
B)  chattel mortgages 
C)  bankruptcy 
D)  assignments of accounts receivable 
E)  builder's liens 
A)  conditional sale contracts 
B)  chattel mortgages 
C)  bankruptcy 
D)  assignments of accounts receivable 
E)  builder's liens

Question 15

If a fraudulent transfer is made to a bona fide purchaser for value,the transaction can still be reversed for a period of one year.

Accepted Answer

A) True 
 B)False

Question 16

Amy Jones looked at a 2011 Ford being sold by a private party who told Jones that the car was free and clear of all encumbrances.Jones had the Ford inspected by Automobile Association,which reported it to be in good condition.Jones bought the Ford for $8000.Two months later,the car was seized by a chattel mortgagee bank that had properly registered its claim in the registry within the time allowed by the act governing chattel mortgages.Given these facts,which of the following is true?

Accepted Answer

A)  Jones would be able to keep the Ford because the seller had represented that the Ford was free and clear of encumbrances. 
B)  Jones would be able to keep the Ford because she was an innocent purchaser without notice of any lien or charge. 
C)  The chattel mortgagee would get the Ford because it had title to it as security, and it could claim its right to title whether it registered the chattel mortgage or not. 
D)  The chattel mortgagee would get the Ford because it properly registered its chattel mortgage on time. 
E)  Jones will lose the car and has no recourse against anyone. She should have checked the registry. 
A)  Jones would be able to keep the Ford because the seller had represented that the Ford was free and clear of encumbrances. 
B)  Jones would be able to keep the Ford because she was an innocent purchaser without notice of any lien or charge. 
C)  The chattel mortgagee would get the Ford because it had title to it as security, and it could claim its right to title whether it registered the chattel mortgage or not. 
D)  The chattel mortgagee would get the Ford because it properly registered its chattel mortgage on time. 
E)  Jones will lose the car and has no recourse against anyone. She should have checked the registry.

Question 17

What is the role of the Superintendent of Bankruptcy?

Accepted Answer

The Superintendent of Bankrupt

Question 18

Which one of the following statements about bankruptcy is false?

Accepted Answer

A)  Bankruptcy law is identical in every province. 
B)  "Bankruptcy" refers to a situation in which a debtor who cannot pay debts transfers his assets to a trustee who acts on behalf of creditors 
C)  Bankruptcy law may allow a debtor to escape from having to pay his debts. 
D)  All creditors of a bankrupt debtor are treated equally and will receive shares of the assets directly in proportion to how much is owed to each of them. 
E)  A debtor who has been discharged from bankruptcy is released from his previous financial obligations. 
A)  Bankruptcy law is identical in every province. 
B)  "Bankruptcy" refers to a situation in which a debtor who cannot pay debts transfers his assets to a trustee who acts on behalf of creditors 
C)  Bankruptcy law may allow a debtor to escape from having to pay his debts. 
D)  All creditors of a bankrupt debtor are treated equally and will receive shares of the assets directly in proportion to how much is owed to each of them. 
E)  A debtor who has been discharged from bankruptcy is released from his previous financial obligations.

Question 19

When a tenant fails to pay rent on a leased commercial property,the common law right of distress is available to the landlord.

Accepted Answer

A) True 
 B)False

Question 20

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

What is the effect if a debtor fraudulently transfers property to a bona fide purchaser for value?

Once the bankrupt has been discharged,explain his status.

Which of the following describes the Bankruptcy and Insolvency Act?

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

In secured transactions-type legislation,such as a Conditional Sale Act,the Bills of Sale Act,the Personal Property Security Act,etc.,what is the purpose of a registration?

In Re Fancy,a businessperson 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?

Here comes your neighbour Max,who wants to ask you more questions about buying an Apple computer for use at home under a conditional sales contract.Which one of the following statements told to him at work is true?

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

When a mortgage is taken on personal property in a PPSA jurisdiction,the borrower temporarily transfers title to the lender.

A company named Printers World Ltd.bought a $9000 plotter under a conditional sale contract and,because of business reverses,is unable to make the payments.Which of the following is accurate with respect to the legal position of the parties?

Compare assignment of contractual rights with negotiation of a negotiable instrument,indicating the advantages and disadvantages of each.

Which of the following is governed by federal statute and thus has rules common to all of Canada?

If a fraudulent transfer is made to a bona fide purchaser for value,the transaction can still be reversed for a period of one year.

What is the role of the Superintendent of Bankruptcy?

Which one of the following statements about bankruptcy is false?

When a tenant fails to pay rent on a leased commercial property,the common law right of distress is available to the landlord.

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

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputesthe Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contractconsensus and Consideration

The Elements of a Contract capacity, Legality, and Intention

Factors Affecting the Contractual Relationship

The End of the Contractual Relationship

Employment

Agency and Partnership

Corporations

Real, Personal, and Intellectual Property

Information Technology and the Internet

Sales and Consumer Protection

Filters

Exam 16: Priority of Creditors

What is the effect if a debtor fraudulently transfers property to a bona fide purchaser for value?

Once the bankrupt has been discharged,explain his status.

Which of the following describes the Bankruptcy and Insolvency Act?

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

In secured transactions-type legislation,such as a Conditional Sale Act,the Bills of Sale Act,the Personal Property Security Act,etc.,what is the purpose of a registration?

In Re Fancy,a businessperson 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?

Here comes your neighbour Max,who wants to ask you more questions about buying an Apple computer for use at home under a conditional sales contract.Which one of the following statements told to him at work is true?

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

When a mortgage is taken on personal property in a PPSA jurisdiction,the borrower temporarily transfers title to the lender.

A company named Printers World Ltd.bought a $9000 plotter under a conditional sale contract and,because of business reverses,is unable to make the payments.Which of the following is accurate with respect to the legal position of the parties?

Compare assignment of contractual rights with negotiation of a negotiable instrument,indicating the advantages and disadvantages of each.

Which of the following is governed by federal statute and thus has rules common to all of Canada?

If a fraudulent transfer is made to a bona fide purchaser for value,the transaction can still be reversed for a period of one year.

What is the role of the Superintendent of Bankruptcy?

Which one of the following statements about bankruptcy is false?

When a tenant fails to pay rent on a leased commercial property,the common law right of distress is available to the landlord.

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

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputesthe Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contractconsensus and Consideration

The Elements of a Contract capacity, Legality, and Intention

Factors Affecting the Contractual Relationship

The End of the Contractual Relationship

Employment

Agency and Partnership

Corporations

Real, Personal, and Intellectual Property

Information Technology and the Internet

Sales and Consumer Protection

Filters