Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

A mechanic's lien can be enforced to recover payment from a debtor for labor and materials in the repair of personal property.

Accepted Answer

A) True 
 B)False

Question 3

Federal law governs garnishment actions.

Accepted Answer

A) True 
 B)False

Question 4

In a suretyship relationship,a third person's credit becomes the security for a debt.

Accepted Answer

A) True 
 B)False

Question 5

Sydney borrows money from Rite Now Loan Company.For Rite Now to obtain a writ of execu?tion,Sydney must

Accepted Answer

A) be unable or refuse to pay the amount of a judgment. 
B) be unable to redeem Sydney's exempt property. 
C) notify Rite Now in writing (in a "writ")of his intent. 
D) surrender possession of his property to a court. 
A) be unable or refuse to pay the amount of a judgment. 
B) be unable to redeem Sydney's exempt property. 
C) notify Rite Now in writing (in a "writ")of his intent. 
D) surrender possession of his property to a court.

Question 6

All of a debtor's pay can be gar?nished.

Accepted Answer

A) True 
 B)False

Question 7

Fact Pattern 28-1A
Dollar Value Motors asks Estimable Bank for a loan to increase its vehicle inventory.Estimable requires Flair,Dollar Value's president,sign a personal guaranty to pay the debt if Dollar Value defaults.Meanwhile,to buy a pick-up truck from Dollar Value,Gina asks Harper to co-sign a credit application.
-Refer to Fact Pattern 28-1A.If Flair is a guarantor,then the guaranty is re?quired to be in writing because of

Accepted Answer

A) the debtor's right of redemption. 
B) the co-signer's right of contribution. 
C) the creditor's transfer of possession. 
D) the Statute of Frauds. 
A) the debtor's right of redemption. 
B) the co-signer's right of contribution. 
C) the creditor's transfer of possession. 
D) the Statute of Frauds.

Question 8

Kyla's debt to Lark is past due.Lark obtains an order of garnishment to require Kyla's employer My Pi Pizza Restaurant to pay part of Kyla's paycheck to Lark.The law

Accepted Answer

A) limits the amount that can be taken from Kyla's take-home pay. 
B) permits My Pi to dismiss Kyla because her wages are garnished. 
C) practically does not allow Lark to collect the awarded amount. 
D) requires My Pi to retain Kyla as an employee until the debt is paid. 
A) limits the amount that can be taken from Kyla's take-home pay. 
B) permits My Pi to dismiss Kyla because her wages are garnished. 
C) practically does not allow Lark to collect the awarded amount. 
D) requires My Pi to retain Kyla as an employee until the debt is paid.

Question 9

A guarantor can be required to pay an obligation only after the principal debtor defaults.

Accepted Answer

A) True 
 B)False

Question 10

Ping's debt to Oak Furniture Warehouse is past due.Oak obtains a judgment against Ping,but Ping refuses to pay it.Oak asks the court for an order that directs the sheriff to seize and sell any of Ping's nonexempt real or personal property that is within the court's geographic jurisdiction.This is a request for

Accepted Answer

A) a writ of execution. 
B) a composition agreement. 
C) an order that would violate most state laws. 
D) an order of garnishment. 
A) a writ of execution. 
B) a composition agreement. 
C) an order that would violate most state laws. 
D) an order of garnishment.

Question 11

Rita is a surety for Serena's loan from Title Lenders,Inc.Rita's right to "step into the shoes" of Title Lenders,after paying Serena's debt,and ex?er?cise any of the Title Lenders's rights against Serena is the right of

Accepted Answer

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

Question 12

The distinctions between a surety and a guarantor have been abolished in all states.

Accepted Answer

A) True 
 B)False

Question 13

Flip's debt to George is past due.George brings a legal action against Flip to collect the debt.George asks the court to order Home Bank,in which Flip has an account,to pay a portion of the funds to George.This is a request for

Accepted Answer

A) a writ of execution. 
B) an order of garnishment. 
C) an order that would violate most state laws. 
D) an artisan's lien. 
A) a writ of execution. 
B) an order of garnishment. 
C) an order that would violate most state laws. 
D) an artisan's lien.

Question 14

An attachment is a court-ordered seizure and taking into custody of prop?erty prior to the securing of a judgment for a past-due debt.

Accepted Answer

A) True 
 B)False

Question 15

Pruit performs a contract with Quint to reshingle the roof on Quint's house,but Quint does not pay.Pruit notifies Quint that the property will be sold to satisfy the debt.This is

Accepted Answer

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

Question 16

Liu and Midge-Nero's creditors-contract with Nero for the discharge of Nero's liquidated debts on payment of a lesser sum.This is

Accepted Answer

A) a composition agreement. 
B) a subrogation. 
C) a suretyship agreement. 
D) in violation of most states' laws. 
A) a composition agreement. 
B) a subrogation. 
C) a suretyship agreement. 
D) in violation of most states' laws.

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

If a creditor obtains a judgment against a debtor and the debtor cannot or will not pay the judgment,the dispute is at an end.

Accepted Answer

A) True 
 B)False

Question 19

Wanda owes Xtra Credit Company $5,000 but refuses to pay.Xtra Credit ob?tains a garnishment order and serves it on Wanda's employer,Young Nursery & Garden,Inc.If Young complies with the order and Wanda stays on the job,is one order enough to garnish all of Wanda's wages for each pay period until the debt is paid?

Accepted Answer

No.In some states,a creditor such as Xtr

Question 20

A guaranty contract must be in writing to be enforceable.

Accepted Answer

A) True 
 B)False

Exam 28: B: Creditors Rights and Remedies

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

A mechanic's lien can be enforced to recover payment from a debtor for labor and materials in the repair of personal property.

Federal law governs garnishment actions.

In a suretyship relationship,a third person's credit becomes the security for a debt.

Sydney borrows money from Rite Now Loan Company.For Rite Now to obtain a writ of execu?tion,Sydney must

All of a debtor's pay can be gar?nished.

Kyla's debt to Lark is past due.Lark obtains an order of garnishment to require Kyla's employer My Pi Pizza Restaurant to pay part of Kyla's paycheck to Lark.The law

A guarantor can be required to pay an obligation only after the principal debtor defaults.

Rita is a surety for Serena's loan from Title Lenders,Inc.Rita's right to "step into the shoes" of Title Lenders,after paying Serena's debt,and ex?er?cise any of the Title Lenders's rights against Serena is the right of

The distinctions between a surety and a guarantor have been abolished in all states.

Flip's debt to George is past due.George brings a legal action against Flip to collect the debt.George asks the court to order Home Bank,in which Flip has an account,to pay a portion of the funds to George.This is a request for

An attachment is a court-ordered seizure and taking into custody of prop?erty prior to the securing of a judgment for a past-due debt.

Pruit performs a contract with Quint to reshingle the roof on Quint's house,but Quint does not pay.Pruit notifies Quint that the property will be sold to satisfy the debt.This is

Liu and Midge-Nero's creditors-contract with Nero for the discharge of Nero's liquidated debts on payment of a lesser sum.This is

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

If a creditor obtains a judgment against a debtor and the debtor cannot or will not pay the judgment,the dispute is at an end.

A guaranty contract must be in writing to be enforceable.

A: Introduction to Law and Legal Reasoning

B: Introduction to Law and Legal Reasoning

C: Introduction to Law and Legal Reasoning

D: Introduction to Law and Legal Reasoning

A: Courts and Alternative Dispute Resolution

B: Courts and Alternative Dispute Resolution

A: Court Procedures

B: Court Procedures

A: Constitutional Authority to Regulate Business

B: Constitutional Authority to Regulate Business

A: Ethics and Business Decision Making

B: Ethics and Business Decision Making

A: Intentional Torts and Privacy

B: Intentional Torts and Privacy

A: Negligence and Strict Liability

B: Negligence and Strict Liability

C: Negligence and Strict Liability

D: Negligence and Strict Liability

A: Intellectual Property and Internet Law

B: Intellectual Property and Internet Law

A: Criminal Law and Cyber Crimes

B: Criminal Law and Cyber Crime

A: Nature and Terminology

B: Nature and Terminology

C: Nature and Terminology

D: Nature and Terminology

A: Agreement in Traditional and E-Contracts

B: Agreement in Traditional and E-Contracts

A: Consideration

B: Consideration

A: Capacity and Legality

B: Capacity and Legality

A: Mistakes,fraud,and Voluntary Consent

B: Mistakes,fraud,and Voluntary Consent

A: The Statute of Frauds

B: The Statute of Frauds

A: Third Party Rights

B: Third Party Rights

A: Performance and Discharge

B: Performance and Discharge

A: Breach of Contract and Remedies

B: Breach of Contract and Remedies

A: The Formation of Sales and Lease Contracts

B: The Formation of Sales and Lease Contracts

C: The Formation of Sales and Lease Contracts

D: The Formation of Sales and Lease Contracts

A: Title,risk,and Insurable Interest

B: Title,risk,and Insurable Interest

A: Performance Breach of Sales Lease Contracts

B: Performance Breach of Sales Lease Contracts

A: Warranties and Product Liability

B: Warranties and Product Liability

A: International Law in a Global Economy

B: International Law in a Global Economy

A: The Function Creation of Negotiable Instruments

B: The Function Creation of Negotiable Instruments

C: The Function Creation of Negotiable Instruments

D: The Function Creation of Negotiable Instruments

A: Transferability and Holder in Due Course

B: Transferability and Holder in Due Course

A: Liability,defenses,and Discharge

B: Liability,defenses,and Discharge