Question 1

Explain the purpose of the Personal Property Security Act as used in Ontario and the western provinces.

Accepted Answer

Its purpose is to bring all of

Question 2

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 3

Explain the purpose of the bankruptcy process.

Accepted Answer

To ensure that creditors realize as much

Question 4

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

Accepted Answer

This Act prohibits the debtor

Question 5

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

Accepted Answer

A non-tangible form of persona

Question 6

Distinguish between personal and real property.

Accepted Answer

Personal includes tangible and non-tangi

Question 7

What is the result of a settlement that takes place within a year of bankruptcy?

Accepted Answer

The answer of What is the result of a settlement...

Question 8

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,

Question 9

Distinguish between a guarantee and an indemnity.

Accepted Answer

A guarantee is an agreement to pay a deb

Question 10

What alternatives are available to the bankruptcy process?

Accepted Answer

The Bankruptcy and Insolvency Act allows

Question 11

Explain two methods for a debtor becoming bankrupt.

Accepted Answer

Voluntary assignment, where the debtor c

Question 12

With regard to bankruptcy and debt collection, which of the following is false?

Accepted Answer

A)  The Bankruptcy and Insolvency Act provides for a procedure for an insolvent debtor to make a proposal to his creditors that may or may not result in bankruptcy for the debtor. 
B)  Both fraudulent conveyance and fraudulent preferences acts attempt to prohibit the debtor from delaying, hindering, or defrauding the creditor. 
C)  Any assets obtained by a discharged bankrupt can still be claimed by former creditors who placed the former bankrupt into bankruptcy. 
D)  The commission of a bankruptcy offence could prevent a bankrupt debtor from being discharged. 
E)  Corporations that go into receivership may not be involved in bankruptcy; the receivership may be based on contract. 
A)  The Bankruptcy and Insolvency Act provides for a procedure for an insolvent debtor to make a proposal to his creditors that may or may not result in bankruptcy for the debtor. 
B)  Both fraudulent conveyance and fraudulent preferences acts attempt to prohibit the debtor from delaying, hindering, or defrauding the creditor. 
C)  Any assets obtained by a discharged bankrupt can still be claimed by former creditors who placed the former bankrupt into bankruptcy. 
D)  The commission of a bankruptcy offence could prevent a bankrupt debtor from being discharged. 
E)  Corporations that go into receivership may not be involved in bankruptcy; the receivership may be based on contract.

Question 13

A continuing guarantee

Accepted Answer

A)  allows a breaching party to pay an amount specified in a contract, rather than facing a lawsuit for damages. 
B)  allows a creditor to advance further funds without affecting the obligation of the guarantor to pay in the event of default. 
C)  is a written commitment not to pursue a legal claim against another. 
D)  is an equitable principle assuring that when security is repossessed, there will be a period of time during which the debtor can still make payment. 
E)  is a primary obligation of a third party to pay a debt along with a debtor. 
A)  allows a breaching party to pay an amount specified in a contract, rather than facing a lawsuit for damages. 
B)  allows a creditor to advance further funds without affecting the obligation of the guarantor to pay in the event of default. 
C)  is a written commitment not to pursue a legal claim against another. 
D)  is an equitable principle assuring that when security is repossessed, there will be a period of time during which the debtor can still make payment. 
E)  is a primary obligation of a third party to pay a debt along with a debtor.

Question 14

What is the purpose of the Fraudulent Conveyances Act? (The name varies with the province.)

Accepted Answer

This Act is designed to prohib

Question 15

Explain how, in a creditor/debtor transaction, the exposure of a guarantor is limited and his rights protected.

Accepted Answer

A guarantor is in a unique position and

Question 16

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 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 public registry or will have actual possession of the collateral. 
B)  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. 
C)  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 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)  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. 
A)  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 public registry or will have actual possession of the collateral. 
B)  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. 
C)  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 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)  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.

Question 17

What purpose is served by requiring the creditor to register his secured transaction?

Accepted Answer

It notifies other people that the goods

Question 18

Who is responsible for repossessing the goods?

Accepted Answer

The creditor, himsel

Question 19

"Joe bought a car from Harry's Fine Cars on time under a conditional sale agreement. It ran fine for a while, then he had a series of problems with it that made Joe regret ever entering into the transaction. Joe simply stopped paying, knowing that the only thing that Harry could do was repossess the goods." Explain the accuracy of the final statement.

Accepted Answer

The statement is inaccurate. In fact, Ha

Question 20

With regard to guarantees and indemnities, which of the following is false?

Accepted Answer

A)  A guarantee cannot be enforced in court unless it satisfies the writing requirements set out in statute. 
B)  Subrogation can result in a guarantor's being able to sue successfully the very debtor whose obligation he guaranteed. 
C)  A guarantor can use any defence against the creditor that the debtor could use. 
D)  A legally enforceable guarantee must satisfy all the elements required to create a binding contract except consideration. 
E)  A legally binding promise to be primarily responsible for someone else's obligation is an indemnity. 
A)  A guarantee cannot be enforced in court unless it satisfies the writing requirements set out in statute. 
B)  Subrogation can result in a guarantor's being able to sue successfully the very debtor whose obligation he guaranteed. 
C)  A guarantor can use any defence against the creditor that the debtor could use. 
D)  A legally enforceable guarantee must satisfy all the elements required to create a binding contract except consideration. 
E)  A legally binding promise to be primarily responsible for someone else's obligation is an indemnity.

Explain the purpose of the Personal Property Security Act as used in Ontario and the western provinces.

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

Explain the purpose of the bankruptcy process.

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

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

Distinguish between personal and real property.

What is the result of a settlement that takes place within a year of bankruptcy?

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

Distinguish between a guarantee and an indemnity.

What alternatives are available to the bankruptcy process?

Explain two methods for a debtor becoming bankrupt.

With regard to bankruptcy and debt collection, which of the following is false?

A continuing guarantee

What is the purpose of the Fraudulent Conveyances Act? (The name varies with the province.)

Explain how, in a creditor/debtor transaction, the exposure of a guarantor is limited and his rights protected.

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

What purpose is served by requiring the creditor to register his secured transaction?

Who is responsible for repossessing the goods?

With regard to guarantees and indemnities, which of the following is false?

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes the Courts and Alternatives to Litigation

Intentional Torts

Negligence, Professional Liability, and Insurance Law

Formation of Contracts

Formation of Contracts Continued

Factors Affecting the Contractual Relationship

The End of the Contractual Relationship

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Exam 16: Priority of Creditors

Explain the purpose of the Personal Property Security Act as used in Ontario and the western provinces.

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

Explain the purpose of the bankruptcy process.

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

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

Distinguish between personal and real property.

What is the result of a settlement that takes place within a year of bankruptcy?

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

Distinguish between a guarantee and an indemnity.

What alternatives are available to the bankruptcy process?

Explain two methods for a debtor becoming bankrupt.

With regard to bankruptcy and debt collection, which of the following is false?

A continuing guarantee

What is the purpose of the Fraudulent Conveyances Act? (The name varies with the province.)

Explain how, in a creditor/debtor transaction, the exposure of a guarantor is limited and his rights protected.

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

What purpose is served by requiring the creditor to register his secured transaction?

Who is responsible for repossessing the goods?

With regard to guarantees and indemnities, which of the following is false?

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes the Courts and Alternatives to Litigation

Intentional Torts

Negligence, Professional Liability, and Insurance Law

Formation of Contracts

Formation of Contracts Continued

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