Exam 16: Priority of Creditors

Because of the special nature of a guarantee, there is no requirement for consideration. SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

Joe worked as a subcontractor for Harry in framing a house owned by Sam. When it became apparent to Joe that he was not going to be paid by Harry, what rights did Joe have under these circumstances?

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

Your brother wants to borrow $8,000 from the Bank of Britannia and has asked if you would guarantee the loan. You have been told the following with regard to guarantees. Which of the following statements is false?

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

Amy Carr looked at a 2011 Ford being sold by a private party who told Carr that the car was free and clear of all encumbrances. Carr had the Ford inspected by Automobile Association, which reported it to be in good condition. Carr bought the Ford for $8,000. 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. On these facts, which of the following is true?

Identify which of the following statements is true about secured transactions in provinces not having a personal property security act.

Which one of the following is false with respect to the Builders' Lien Act?

The Bankruptcy and Insolvency Act allows a supplier of goods to a bankrupt to seek return of those goods.

Which of the following debts continue even after a bankrupt has been discharged?

The assignment of book accounts is the conditional right to collect on outstanding accounts in the event of default.

Identify which of the following statements best describes the legal position of a conditional seller.

In the event of a default, if the creditor elects to repossess and resell the goods, how does he protect his right to claim for deficit?

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

If a bank as chattel mortgagee fails to register the mortgage of a car, which of the following is false?

Student loans survive bankruptcy and remain payable for up to 10 after the debtor ceases to be a student.

Distinguish between a conditional sale and a chattel mortgage.

What is the primary remedy available when goods have been used to secure a loan which has been defaulted?

What is the effect on a corporation when it goes bankrupt?

What significant amendment was made to the Bills of Exchange Act in 1970?