Question 1

Which of the following is NOT true when a judge orders a writ of execution?

Accepted Answer

A)   A local law officer can seize and sell a debtor's non-exempt real or personal property.
B)   Some states allow a debtor to designate which property will be seized under the writ of execution.
C)   If a debtor refuses to designate property for seizure and sale, the law officer can take any non-exempt property.
D)   Any and all of a debtor's property can be seized to satisfy an obligation.
E)   The writ of execution allows seizure of a debtor's property only after the entry of judgment in the underlying case.F) A) and E)
G) B) and C)

Question 2

A consummate lien is the lien of the judgment creditor that arises when

Accepted Answer

A)   an attorney fails to appear to defend the debtor.
B)   a consumer is the third party creditor.
C)   the creditor has lost possession of the property.
D)   a motion for a new trial has been denied.
E)   the judge grants a motion for a new trail.F) B) and D)
G) A) and E)

Question 3

Kyla hires a contractor to remodel her home. She does not agree to a lien or sign any documentation giving the contractor a lien. He claims a lien on the house anyway. What type of lien does he have?

Accepted Answer

A)   Statutory
B)   Consensual
C)   Judgment
D)   Approved
E)   EvaluatedF) B) and E)
G) B) and C)

Question 4

[Bad Hair Day] Tara started a new hair salon and leased space for the salon from Marisa. Unfortunately, Tara's styling caused some problems for customers. One customer's hair turned green from Tara's bleaching process, and Tara burned another customer with a curling iron. Not surprisingly, Tara had little business and was unable to pay her lease payments as they came due. Marisa filed a lawsuit against Tara and obtained a judgment against Tara for $7,000 in past due rent. Marisa asked for a court-ordered judgment permitting the sheriff to seize and sell Tara's equipment, including her hair-dryers, pedicure chair, nail polish, and other items. The judge refused her request. Marisa did, however, obtain an order allowing her to seize $3,000 held in Tara's bank account to partially satisfy the debt. Marisa also discovered that Tara had, for her personal use, a wide-screen television set worth approximately $1,000 which was being held by Franklin, a television repairer, for the costs of repair. Marisa asked him to turn over the television because her lien had priority, but Franklin refused.
-Marisa was allowed to seize money from Tara's bank account with what type of order?

Accepted Answer

A)   Attachment
B)   Garnishment
C)   Relinquishment
D)   Foreclosure
E)   ConsolidationF) A) and B)
G) A) and C)

Question 5

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 6

Which of the following is a transfer or assignment by a debtor of title to property to a trustee or an assignee who sells the property with the proceeds of the sale going to pay creditors on a pro rata basis?

Accepted Answer

A)   An assignment for the benefit of creditors
B)   A composition agreement
C)   A sale and transfer agreement
D)   A pro rata agreement
E)   A termination agreementF) A) and E)
G) A) and B)

Question 7

A statutory lien is a lien created solely through statute, regardless of whether the debtor wishes the lien to be created.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is true regarding types of liens?

Accepted Answer

A)   Types of liens include consensual, statutory, and judgment, but not approved or evaluated.
B)   Types of liens include consensual and statutory, but not judgment, approved, or evaluated.
C)   Types of liens include consensual and judgment, but not statutory, approved, or evaluated.
D)   Types of liens include judgment, statutory, approved, and evaluated but not consensual.
E)   Types of liens include consensual, statutory, judgment, approved, and evaluated.F) D) and E)
G) B) and C)

Question 9

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

Question 10

[Rough Start] Allison, who just graduated from college, wanted to buy a new car. However, she did not have much of a credit history, and the bank would not give her a loan unless she had a cosigner who agreed to be liable on the loan along with Allison. Allison's father cosigned with Allison on her loan at the bank. Allison also wanted to start a real estate business. She needed funds with which to do so. Her boyfriend, Sean, promised the bank, in writing that he would pay Allison's start-up loan for the real estate business if Allison did not do so. Unfortunately, Allison did not make any money in the real estate business. She went bankrupt along with Sean, who had been acting as her receptionist.
-The agreement entered into between Allison's father and the bank is called what?

Accepted Answer

A)   A suretyship
B)   A guaranty
C)   A certified agreement
D)   An acknowledged agreement
E)   An executory promiseF) C) and D)
G) A) and C)

Exam 31: Other Creditors Remedies and Suretyship

Which of the following is true regarding types of liens?

Correct Answer
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Which of the following is a transfer or assignment by a debtor of title to property to a trustee or an assignee who sells the property with the proceeds of the sale going to pay creditors on a pro rata basis?

Correct Answer
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Which of the following is NOT true when a judge orders a writ of execution?

Correct Answer
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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 Answer
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A consummate lien is the lien of the judgment creditor that arises when

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

Correct Answer
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A statutory lien is a lien created solely through statute, regardless of whether the debtor wishes the lien to be created.

Correct Answer
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Kyla hires a contractor to remodel her home. She does not agree to a lien or sign any documentation giving the contractor a lien. He claims a lien on the house anyway. What type of lien does he have?

Correct Answer
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Exam 31: Other Creditors Remedies and Suretyship

Which of the following is true regarding types of liens?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is a transfer or assignment by a debtor of title to property to a trustee or an assignee who sells the property with the proceeds of the sale going to pay creditors on a pro rata basis?

Correct AnswerverifiedShow Answer

Which of the following is NOT true when a judge orders a writ of execution?

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

A consummate lien is the lien of the judgment creditor that arises when

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A statutory lien is a lien created solely through statute, regardless of whether the debtor wishes the lien to be created.

Correct AnswerverifiedShow Answer

Kyla hires a contractor to remodel her home. She does not agree to a lien or sign any documentation giving the contractor a lien. He claims a lien on the house anyway. What type of lien does he have?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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