BUL4321 Chapters 22, 24, 25, 26, 27, 29

A secured party perfects a claim by filing a financing statement with the debtor .

False

An agent must keep confidential any information acquired through an agency during the term of the relationship , but can disclose it after the agency ends .

False

An employer can require employees to participate in such religious activity as weekly prayer meetings with other employees.

False

Bankruptcy relief is provided under state , not federal law .

False

Ridge Bank creates a paper reproduction of customer Sophie's check with the statement "This is a legal copy of your check. You can use it in the same way you would use the original check." This is

A substitute check

On Friday morning, Geoff deposits into his account at Heartland Bank a $500 check from Imelda, who also has an account at Heartland. On that same day, this check is considered

A provisional credit

Tomas signs a check "pay to the order of University Bookstore" drawn on his account in Verity Bank to pay for his textbooks. The bookstore deposits the check in its account in West Bank. Like most checks, this check is

A special type of draft

A paper check must be presented for payment- it cannot be retained at its place of deposit, with only its image or description presented electronically.

False

A person can sign an instrument as an authorized agent of the drawer , but the instrument is not negotiable unless the drawer also signs it .

False

A person who cannot legally enter into a certain contract directly can do so indirectly through an agent.

False

A property owner who hires a realtor to sell a property thereby enters into an agency relationship with an employee for a limited time .

False

Actual authority in an agency relationship arises from what a principal makes clear to a third party.

False

Agency relationships come about by voluntary consent and agreement of the parties-consideration is required, and the agreement must be in writing.

False

An independent contractor is, by definition, an employee.

False

Apparent authority in an agency relationship arises when the principal causes the agent to reasonably believe that he or she has the authority to act.

False

Even if a customer's negligence substantially contributes to a forgery of the drawer's signature on a check , the bank is obliged to re - credit the customer's account for the amount of the check .

False

If a bank pays a stale check in good faith but without consulting the customer , the bank has no right to charge the customer's account for the amount .

False

If a check is made " payable to the order of Marcus or Nathan , " both parties ' indorsements are necessary for negotiation .

False

If any financial institution, such as a brokerage house, handles a check for payment or collection, the check is covered by UCC Article 4.

False

In an agency relationship, one party called the principal agrees to represent or act for another called the agent.

False

In the event that there is a conflicting , superior claim to an instrument , a holder in due course will not be able to collect payment .

False

Most liens have little practical use , because liens generally do not take priority over other claims to the same property .

False

Providing only a debtor's trade name in a financing statement is sufficient for perfection even if the trade name is not the legal name of the business .

False

The Americans with Disabilities Act defines disability to include a physical or mental impairment that causes "undue hardship."

False

The bank on which a check is drawn is the depositary bank.

False

The last security interest to be perfected is the first in priority over any other perfected security interests .

False

The principal is bound by the agent's unauthorized act , unless the principal negates it

False

Voluntary petitions may be filed to initiate Chapter 7 or Chapter 11 , but not Chapter 13 , bankruptcies .

False

When a co - surety pays more than his or her proportionate share on a debtor's default , he or she is entitled to recover from the debtor the excess amount paid .

False

When a customer makes a deposit into a checking account , the customer becomes a debtor , and the bank a creditor , for the amount deposited .

False

When a debtor defaults , a secured creditor can relinquish the security interest but cannot then seek a judgment on the underlying debt .

False

When an agent's acts create the appearance of an agency that does not in fact exist , the principal is estopped to deny the agency relationship .

False

When two conflicting security interests are unperfected , the last to attach has priority .

False

With a joint checking account, the bank can hold any joint-account owner liable for payment of an overdraft even if that owner did not sign the check or benefit from its proceeds.

False

Daisy signs a check "pay to the order of Ewan" drawn on Daisy's account in Finance Bank. Graham forges Ewan's indorsement. Finance Bank pays the check. Most likely​

Finance Bank will have to recredit Daisy's account

Federal law provides a minimal framework to protect debtors from losing all their income in order to pay judgment debts .

True

Fewer records are available with electronic banking to prove or disprove that a transaction occurred.

True

Jane signs an instrument using a " J " with a swirl around it . With this mark for a signature , the instrument is

negotiable

Oliver signs an instrument that states it is being executed " as per a contract for the sale of a case of apples dated May 1. " This instrument is

negotiable

Opal signs a promissory note payable to the order of Payday Loan Company . The note states that it is payable " with interest at the legal rate . " This note is

negotiable

Vera gives Will a $ 500 check as payment for a debt . Will crudely increases the amount of the check to $ 5,000 and deposits the check in his First Bank account . Vera is liable for the payment of $ 5,000 to

no one

Under Chapter 7 , once the proceeds have been distributed , the obligations of the debtor most likely to be discharged are

none of the choices

Fred has six nieces , ages five to sixteen . He writes an order instrument for $ 50 that states " Pay to the order of my niece . " The order instrument is

nonnegotiable , because there is no specific person identified

To succeed in a suit against a potential employer for discrimination under the Americans with Disabilities Act, a job applicant must show that he or she

was not hired solely because of a disability.

Rick negotiates a bearer instrument to Shane by delivery

without more

Generally , when an indorsement is unauthorized , the burden of loss falls on the first party to take the instrument .

True

If the numerical and written amounts on a check differ , the check is payable in the written amount

True

In a Chapter 13 proceeding , the debtor retains possession of his or her assets .

True

In a Chapter 7 proceeding , the primary effect of a discharge is to void any judgment on a discharged debt and to prohibit any action to collect it .

True

In terms of requirements for holder - in - due - course ( HDC ) status , first a party must be a holder of a negotiable instrument .

True

Punitive damages may be recovered in a case of discrimination against a private employer if the employer acted with malice or reckless indifference.

True

Several documents may be considered together to comprise a security agreement .

True

The Age Discrimination in Employment Act extends to federal government employees but state employers are usually immune from age-based claims.

True

The destruction of an original check after the creation of a substitute check prevents the check from being paid twice.

True

The holder of a note who needs the funds owed on it can transfer it for cash to a third party , whom the maker must pay when the note comes due .

True

To avoid the risk of loss from theft , a holder can convert a blank indorsement to a special indorsement by writing , above the signature of the indorser , the name of the indorsee .

True

To bring a Title VII claim as a class action, employees must prove a company-wide policy of discrimination that has a common effect on all of the plaintiffs.

True

When a bank wrongfully dishonors a check, it is liable to the customer for any resulting damages.

True

When a debtor defaults , a secured creditor can take possession of the collateral without a court order and either retain or resell the collateral .

True

With an order instrument , the payee must be identified with certainty because the transfer of the instrument requires his or her signature .

True

Ken presents an instrument that states " pay to the order of Laura " to Metro Bank for payment . The most common type of negotiable instrument , this is

a check

Bayside Marina borrows funds from Credit Union secured by Bayside's interest in the marina . If Credit Union fails to perfect its claim to the collateral , the claim will be reduced to that of

an unsecured creditor

LNG LLC and Mainline Utility Corporation enter a contract for a sale of liquefied natural gas . LNG draws a draft unconditionally ordering Mainline to pay $ 50,000 to LNG's order in sixty days . Mainline signs and dates the draft . LNG can sell the draft to

any party before payment is due .

Under Chapter 7 , once the proceeds of the bankruptcy estate have been distributed , the debtor's remaining debts

are discharged

Title VIl of the Civil Rights Act applies to employers and labor unions with at least

fifteen employees or members.

Federal employment discrimination laws restrict the ability of employers to discriminate against workers on the basis of

gender.

At the time of the filing of the petition and the time of the filing of the plan , Chapter 13 imposes on the debtor the requirement of

good faith

Misha's debit card, issued by National United Bank, is stolen and used without her permission. She tells the bank within thirty days. She may be required to pay no more than ...

$500

Gillis writes a check to Harley as payment for a game player but soon discovers it is broken. He goes to the drawee bank and orally authorizes Ilene, a bank officer, to stop payment on the check. This order is valid for​

14 days

Dona, a fifty-five-year-old member of a racial minority with a disability, believes that she is a victim of employment discrimination. Potentially the most widespread form of discrimination is based on

Age

A buyer in the ordinary course of business takes goods subject to any security interest created by the seller because otherwise the free flow of credit would be hindered .

False

A check " payable to the order of Bethany " is indorsed in blank if Bethany simply delivers it without signing it .

False

A court cannot dismiss a debtor's petition under Chapter 13 even if the circumstances indicate bad faith

False

A debtor cannot defend against an involuntary bankruptcy petition because that would be contrary to the definition of involuntary

False

Kyla replaces Lomax in his job at Motor Corporation. Lomax believes that he has been discriminated against on the basis of his age. For the Age Discrimination in Employment Act to apply

Lomax must be forty years of age or older.

Miklos employs Nathalie to handle a list of financial transactions on Miklos's behalf. This power will terminate on

Miklos's death or incapacity

Shane issues a check drawn on Thrifty Bank to Farm Supply Store to pay for a rototiller. Later, Shane discovers a defect in the device and orders Thrifty to stop payment on the check. Shane does not renew the order, and the bank clears the check eight months later. The bank​...

Need not recredit Shane's account

A business necessity is a defense against employment discrimination based on the genuine requirements of a business.

True

A secured party may be liable to a debtor for failing to comply with the debtor's request for confirmation of the amount of the unpaid debt .

True

A truck driver who drives a company truck on a regular basis is most likely an employee.

True

A worker who is dissuaded from filing a charge of discrimination by an employer's threat to change the benefits of the job has a basis for a claim of retaliation.

True

An employer may be able to avoid liability for sexual harassment by taking prompt remedial action.

True

Any instrument that orders the drawee to pay a certain sum of money is a draft .

True

Any person can be an agent, regardless of whether he or she has the capacity to contract.

True

Any transaction in which the payment of a debt is guaranteed by personal property owned or held by the debtor is a secured transaction .

True

Checks received after a certain time can be deferred for posting until the next banking day.

True

Finance Bank receives a check drawn on the account of Enterprise Industries, Inc., one of the bank's customers, at 3 P.M. Friday. Dora, the presenter of the check, is not one of the bank's customers. The bank uses deferred posting with a 2 P.M. cutoff hour. If it decides to dishonor the check, it must do so by midnight.

Tuesday

Ann files a petition in bankruptcy under Chapter 7. Brian takes control over her property and reduces it to money for distribution . Brian is

a bankruptcy trustee

Pipeline Corporation requires its employees to have a high school diploma. In a suit against Pipeline under the Civil Rights Act, the employer shows a connection between a high school education and job performance. Most likely, this is

a business necessity defense.

Cady files an employment discrimination suit against Durable Goods Corporation under the Civil Rights Act. If Cady shows that Durable Goods acted with malice or reckless indifference, she may recover

a limited amount of compensatory and punitive damages.

A voluntary petition in bankruptcy must include

a list of the debtor's creditors and the amount of the debt owed to each

Diamonds & Gold LLC hires Elle to buy gems and precious metals from various sources on its behalf. In this relationship, Diamonds is

a principal

Qin applies for a job at Rocket Science Inc. He passes a test to determine which applicants are eligible for hiring, but Rocket discards the results, and Qin is rejected. To support a claim for discrimination against the employer under Title VII of the Civil Rights Act, Qin must be a member of

a protected class

Construction Inc. wants to agree with its creditors on a plan under which it pays a portion of its debt and is discharged of the rest . To accomplish this goal , the corporation should file a petition in bankruptcy under Chapter 11 for relief through

a reorganization

Baby Day Care , a sole proprietorship , wants to pay as many of its obligations as reasonably possible , and be discharged of the rest . To accomplish this goal , the proprietorship should file a petition in bankruptcy under Chapter 13 for relief through

a repayment plan .

Auto Sales & Finance wants to get paid for its goods and services , so it will not sell goods or lend funds unless payment is guaranteed . This is the concept of

a secured transaction

A bankruptcy trustee is accountable for

administering the debtor's estate

Under the Equal Pay Act, an employer can legitimately pay different wages to male and female employees on the basis of

all of the choices.

Motor Parts Sales Inc. hires Nolly to work on its shipping dock, accepting deliveries, and dispatching trucks, and dealing with customers and drivers. With respect to Motor Parts, Nolly is most likely

an agent.

Nora works at Oil & Gas Inc. She is a sales representative who works with Oil & Gas customers. The company closely supervises its sales reps, and dictates their schedules. With respect to third parties, Nora is

an employee and agent

Lisa brings a successful suit against her employer Mold & Die Corporation for employment discrimination. Lisa may be awarded

back pay, retroactive promotions, and damages.

Darla serves in a representative capacity for Ellen's Botanicals. To accomplish the objectives of this relationship, Darla's authority can be implied by

by custom.

Building Company adds a shipping dock to the property of Corporate Complex , but the owner does not pay . Building files a lien on Corporate's property . The property

can be held to guarantee payment of the debt .

Barth borrows funds from City Bank to pay his tuition . His mother Debi co - signs the credit application . After the loan agreement is signed , Barth agrees to a higher rate of interest without telling Debi . She is

discharged from the agreement

Giso applies for a job with Hobby Company. The employer does not hire him because of his ethnicity, or national origin. This is

disparate-treatment discrimination.

With respect to creditors , the main goal of bankruptcy law is to

ensure equitable treatment in the competition for debtor assets

Kelly's Autos Inc. borrows funds from Loan Company under a security agreement . Later , Kelly's buys new vehicles to add to its inventory . Loan Company has a security interest in the new vehicles

if the security agreement included an after - acquired property clause .

Jon contracts with Kino to buy a certain number of sheep for Kino's Animal Farm . Jon makes a deal with Lila for the sheep , but neither Jon nor Kino pays the price . Lila sues Jon for breach . Jon's right to hold Kino liable for any damages is the right to

indemnification

Raul wants to transfer a check to Schmidt . The check is defective if it

is clearly stamped " insufficient funds."

Under the Bankruptcy Code , the means test is used to

keep higher - income people from abusing the bankruptcy process .

Rubin writes a check drawn on his account at Clearwater Bank and payable to the order of Gwyn . The bank does not pay the check . Rubin is

liable to Gwyn for the amount of the check

Chapter 7 of the Bankruptcy Code provides for

liquidation proceedings

Under Chapter 13 , after the completion of all payments under the plan , the court will grant a discharge of

only the debts provided for by the plan

With respect to debtors , the main goal of bankruptcy law is to

provide a new start without creditors ' claims

Inez files an employment discrimination suit against Jiffy Delivery Inc. under the Civil Rights Act, based on Jiffy's discharge of Inez. Possible relief includes

reinstatement.

Bonds Bank assigns to Capital Invest the bank's security interest in certain real property owned by Developer Inc. Capital Invest becomes the secured party of record . The bank's security interest in the collateral is

terminated

Fara hires Gil, a real estate broker, to act as her agent to sell her land for $150,000. Before the land is sold at the stated price, oil is discovered beneath it, causing its market value to increase considerably. The agreement between Fara and Gil is likely

terminated by operation of law.

Larry is an agent for Mary. She gives him clear instructions to enter into contracts on her behalf only on Mondays, Wednesdays, or Fridays. He enters into a contract on her behalf on Tuesday. Larry has breached

the duty of obedience.

Under Chapter 13 , a repayment plan must provide for

the same treatment of each claim within a particular class of claim

Under Chapter 13 , a repayment plan must provide for

the same treatment of each claim within a particular class of claim .

Loan Company has a security interest against Manufacturing Inc. that is enforceable . In other words with respect to the collateral , Loan's rights are said to

attach