Question 1

What happens if a debtor is successful in a legal action initiated by a creditor after a creditor attached property?

Accepted Answer

A)  The debtor can recover damages from the creditor for losses suffered while deprived of property and,if the property was wrongfully attached,may recover punitive damages.
B)  The creditor will be permitted to sell the debtor's property to satisfy the debt.
C)  The debtor's property is returned,but no damages may be obtained by either party.
D)  The debtor can recover punitive damages only.
E)  The debtor can recover actual damages only,even if the property was wrongfully attached.F) A) and E)
G) B) and D)

Question 2

If a creditor brings legal action against a surety or guarantor,the surety or guarantor has no legal defenses available.

Accepted Answer

A) True 
 B)False

Question 3

The mortgagee can seek a deficiency judgment if proceeds of the sale of real property do not cover the debt.

Accepted Answer

A) True 
 B)False

Question 4

At any time before the sale of real property subject to a mortgage,the debtor may recover the property by paying the debt along with additional costs and interest.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is true if a debtor engaged in fraud in order to convince a surety or guarantor to enter into a contract with a third party?

Accepted Answer

A)  The surety is released from liability,but the guarantor is not.
B)  Because the third party is innocent,neither the surety nor the guarantor is released from liability.
C)  Both the guarantor and the surety will likely be released from liability on interest due on the contract,but not for the principle amount.
D)  The guarantor is released from liability,but the surety is not.
E)  Both the guarantor and the surety will likely be released from liability.F) D) and E)
G) All of the above

Question 6

What is the most likely result of the dispute between Franklin and Marisa regarding the television set,assuming no exemption applies?

Accepted Answer

A)  Franklin and Marisa will be required to sell the television and split the proceeds 50-50.
B)  Marisa will win the dispute because a judicial lien is always enforced before any other type of lien,and she will be able to sell the television for amounts owed to her by Tara without sharing any of the funds with Franklin.
C)  Franklin and Marisa will be required to sell the television with Franklin,the holder of an artisan's lien,receiving only 25%,and Marisa receiving the rest.
D)  Franklin will win the dispute because he has rights to a super-priority lien,and he will be able to recover amounts to which he is due from the sale of the television before Marisa is entitled to any funds.
E)  Franklin and Marisa will be required to sell the television and split the proceeds based upon their percentage of debt.F) B) and C)
G) A) and B)

Question 7

If a surety or guarantor pays the debtor's obligation to the creditor,the surety or guarantor has a right to ,which means that the surety or guarantor is entitled to all the rights that the creditor had against the debtor.

Accepted Answer

A)  Securement
B)  Subrogation
C)  Recoupment
D)  Reimbursement
E)  ContributionF) A) and B)
G) A) and C)

Question 8

By which of the following is a mechanic's lien created?

Accepted Answer

A)  Acknowledgement
B)  Mortgage
C)  Consent
D)  Statute
E)  ForeclosureF) All of the above
G) A) and E)

Question 9

The term "super-priority liens" applies to both artisan's and mechanic's liens.

Accepted Answer

A) True 
 B)False

Question 10

What is the term for what Marisa requested when she requested that the judge have law enforcement officers seize and sell Tara's equipment?

Accepted Answer

A)  Writ of garnishment
B)  Order of law
C)  Writ of debt satisfaction
D)  Writ of execution
E)  Order of complianceF) All of the above
G) A) and E)

Question 11

An artisan's lien is a claim on what types of property?

Accepted Answer

A)  Real,personal,and movable
B)  Personal,but not movable or real
C)  Movable and real,but not personal
D)  Movable but not personal or real
E)  Personal and real,but not movableF) D) and E)
G) B) and E)

Question 12

Creating a mechanic's lien on property automatically ensures that the contractor who filed the lien will receive money.

Accepted Answer

A) True 
 B)False

Question 13

A composition agreement is a contract between creditors and a debtor in which the creditors agree to accept a lesser amount to satisfy the debts and discharge the remaining debt.

Accepted Answer

A) True 
 B)False

Question 14

After judgment is entered against Kylie in a suit for nonpayment by a creditor,the judge orders a local sheriff to seize and sell some of Kylie's valuable jewelry.This is an example of a ________.

Accepted Answer

A)  Writ of execution
B)  Order of attachment
C)  Decree of sale
D)  Writ of discharge
E)  Decree of seizureF) C) and E)
G) B) and E)

Question 15

If Paul proceeds with attempting to obtain and enforce a lien,what is the most likely result?

Accepted Answer

A)  Paul will lose because he performed deficient work.
B)  Paul will win if he proves that he had never had a problem installing windows before.
C)  Paul will receive only half of his bill because he performed deficient work.
D)  Paul will lose unless he already paid Good Windows for the windows,in which case he would win.
E)  Paul will win unless Cecelia has a writing signed by him in which he agrees that he will not seek a lien in the case of deficient work.F) A) and C)
G) A) and B)

Question 16

A debtor is permitted to retain all or a portion of the family home so that the family will retain some form of shelter through which of the following exemptions?

Accepted Answer

A)  Personal estate
B)  Shelter
C)  Real
D)  Real estate
E)  HomesteadF) A) and B)
G) C) and E)

Question 17

Regarding the amount that may be garnished from a pay check,what is the rule established by the Federal Consumer Credit Protection Act?

Accepted Answer

The act states that a debtor must be abl...

Question 18

A judicial order authorizing a local law officer to seize and sell any of the debtor's real or personal nonexempt property is known as which of the following?

Accepted Answer

A)  A writ of attachment
B)  A writ of foreclosure
C)  A writ of execution
D)  A writ of garnishment
E)  A writ of mortgageF) D) and E)
G) A) and E)

Question 19

When a creditor,through legal action,seizes a debtor's property to satisfy the debt,the creditor has a judicial lien.

Accepted Answer

A) True 
 B)False

Question 20

A person who holds a lien is called a[n] ________.

Accepted Answer

A)  Agreement holder
B)  Property acknowledgement holder
C)  Consenting agent
D)  Charger
E)  LienholderF) A) and D)
G) A) and C)

Exam 31: Other Creditors Remedies and Suretyship

If Paul proceeds with attempting to obtain and enforce a lien,what is the most likely result?

Correct AnswerverifiedShow Answer

A debtor is permitted to retain all or a portion of the family home so that the family will retain some form of shelter through which of the following exemptions?

Correct AnswerverifiedShow Answer

An artisan's lien is a claim on what types of property?

Correct AnswerverifiedShow Answer

When a creditor,through legal action,seizes a debtor's property to satisfy the debt,the creditor has a judicial lien.

Correct AnswerverifiedShow Answer

Creating a mechanic's lien on property automatically ensures that the contractor who filed the lien will receive money.

Correct AnswerverifiedShow Answer

A person who holds a lien is called a[n] ________.

Correct AnswerverifiedShow Answer

What is the term for what Marisa requested when she requested that the judge have law enforcement officers seize and sell Tara's equipment?

Correct AnswerverifiedShow Answer

What happens if a debtor is successful in a legal action initiated by a creditor after a creditor attached property?

Correct AnswerverifiedShow Answer

At any time before the sale of real property subject to a mortgage,the debtor may recover the property by paying the debt along with additional costs and interest.

Correct AnswerverifiedShow Answer

What is the most likely result of the dispute between Franklin and Marisa regarding the television set,assuming no exemption applies?

Correct AnswerverifiedShow Answer

Regarding the amount that may be garnished from a pay check,what is the rule established by the Federal Consumer Credit Protection Act?

Correct AnswerverifiedThe act states that a debtor must be abl...View AnswerShow Answer

The mortgagee can seek a deficiency judgment if proceeds of the sale of real property do not cover the debt.

Correct AnswerverifiedShow Answer

The term "super-priority liens" applies to both artisan's and mechanic's liens.

Correct AnswerverifiedShow Answer

Which of the following is true if a debtor engaged in fraud in order to convince a surety or guarantor to enter into a contract with a third party?

Correct AnswerverifiedShow Answer

By which of the following is a mechanic's lien created?

Correct AnswerverifiedShow Answer

If a creditor brings legal action against a surety or guarantor,the surety or guarantor has no legal defenses available.

Correct AnswerverifiedShow Answer

After judgment is entered against Kylie in a suit for nonpayment by a creditor,the judge orders a local sheriff to seize and sell some of Kylie's valuable jewelry.This is an example of a ________.

Correct AnswerverifiedShow Answer

A judicial order authorizing a local law officer to seize and sell any of the debtor's real or personal nonexempt property is known as which of the following?

Correct AnswerverifiedShow Answer

If a surety or guarantor pays the debtor's obligation to the creditor,the surety or guarantor has a right to ,which means that the surety or guarantor is entitled to all the rights that the creditor had against the debtor.

Correct AnswerverifiedShow Answer

A composition agreement is a contract between creditors and a debtor in which the creditors agree to accept a lesser amount to satisfy the debts and discharge the remaining debt.

Correct AnswerverifiedShow Answer

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The act states that a debtor must be abl...
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