BLAW 5

6. Under the UCC, is the payment term in a contract fully enforceable?

- As long as both parties ascertained the essential terms

22. What is the measure of damages for a seller who delivers goods to a buyer but then the buyer does not pay for them?

- Assuming the goods are as agreed upon, cancel contract and the difference in contract and current price plus extra damages

34. Under any chapter of the Bankruptcy Code, what can fail to file the necessary documents with the debtor's petition for relief result in?

- Automatic dismissal of petition

42. Under Chapter 7, what happens to the debtor's remaining debts once the proceeds of the bankruptcy have been distributed?

- Back to the debtor

39. Under Chapter 7, what may happen to a debtor who fails to appear at the creditors' meeting when required?

- Bankruptcy qualification is dismissed because it is required

49. Does Chapter 13 impose on the debtor the requirement of good faith at the time of the filing of the petition and the time of the filing of the plan?

- Both at time of filing of petition and filing plan

20. What are the options for a buyer who is notified by the seller that delivery of goods will be delayed longer than the terms in the contract?

- Buyer can reject the goods if material loss or significant delay results

15. Does the seller or buyer generally suffer the loss when goods in transit (being shipped from seller to buyer) are destroyed or ruined?

- Buyer, since most contracts are shipment contracts AND if goods made it to carrier

23. What is the measure of damages for a buyer when the seller fails to deliver goods as contracted?

- Cancel the contract, obtain goods upon insolvency, specific performance for unique goods, right to cover and get substitute goods along with difference in cost and other damages

40. For what is a bankruptcy trustee accountable?

- Collecting debtor's available estate and administering it

27. What is a writ of execution?

- Court's order to seize and sell debtor's property in court's geographic jurisdiction

43. What is a Chapter 11 reorganization?

- Creditors and debtor formulate a plan where debtor pays a portion and is discharged rest

45. Under Chapter 11, what two parties must approve a plan to conserve and administer the debtor's assets?

- Debtor in possession and creditor committee

36. Under the Bankruptcy Code, what is the means test used for?

- Determines eligibility and keeps upper-income people from abusing bankruptcy process

37. What is a court likely to do if it finds the use of Chapter 7 would constitute substantial abuse?

- Dismiss the chapter 7 voluntary petition for relief

32. What would give a lender the right to foreclose on a mortgage for which it has lent money?

- Homeowner failed to make the mortgage payment

13. What generally determines when risk or loss passes from seller to buyer?

- If it is a shipment contract- delivered to a carrier. Destination contract-delivered to buyer

31. What does the Statute of Frauds require for a mortgage involving the transfer of real property or real estate?

- Mortgage must be in writing

5. Does the UCC Article 2 apply to shares of stock?

- No, intangible property

2. Who is considered a Merchant under the UCC?

- One who deals in goods of the kind in the contract, holds themself as knowledgeable to the unique practices of goods involved (banks and universities), and one who employs a broker or agent

8. What will a court generally presume in case of a dispute if some terms in a deal are left open?

- Parties never intended to form a contract

3. What is considered a sale under the UCC?

- Passing of title for seller to buyer for a price paid in cash or other goods and services

35. What must a voluntary petition in bankruptcy include?

- Petition in bankruptcy filed by the debtor

17. What is an insurable interest?

- Potential to get goods insured as log as they retain the title

26. What is meant by pledging collateral to get a loan?

- Promising to give away specific property like a car or house to ensure repayment

1. What does UCC Article 2 cover?

- Sales contracts for the sale of goods

41. Under Chapter 7, what is the highest priority class for payment of claims?

- Secured Creditors

30. Why should a lender record a mortgage that it has given a loan on?

- Secures borrowed funds from a financial institution. Borrowers property is security for payment of the debt for the lender

16. Does the seller or buyer pay the cost of transport when the seller arranges with the buyer to transport goods as "F.O.B." (from the seller's location)?

- Seller because it is included in the price the buyer paid

14. What is a shipment contract?

- Seller ships the good by a carrier. Title then passes to buyer once in hands of carrier.

10. Recognize some examples of when identification has taken place under the UCC.

- Specific goods are designated in the contract. Existing- time of contract. Future - ships or designates goods to the receiver

21. What can a seller do when the buyer refuses delivery of goods it bought and cancels the contract?

- Sue to recover the sales price if not readily available to another customer

47. Does a Chapter 13 plan allow a debtor to retain possession of his or her assets?

- They can keep property and repay debts over time

4. What is considered a lease under the UCC?

- Transfer of the right to possess and use goods for a period of time in exchange for payment

12. When does title to goods generally pass from seller to buyer?

- Unless otherwise specified, at time and place seller delivers the goods

19. For the seller to exercise its right to cure a faulty shipment received by the buyer, how soon must the seller notify the buyer of its intent to cure?

- Usually before performance expires, unless the seller thought the non-conforming goods were acceptable.

44. What is the primary effect of a discharge under Chapter 7?

- Voids a debt and prevents collection of it

18. If A agrees to sell goods to B under a shipment contract, must A place the goods into the hands of a carrier?

- Yes

24. Under most circumstances, is a seller presumed to have warranted its title as good and valid to goods it sold to a buyer?

- Yes

7. If A orders items from B which delivers those items to A, is this considered a sale of goods?

- Yes

11. Are the concepts of identification and risk of less the main criteria for determining the rights and liabilities of the parties to a contract where the items are destroyed before they can be delivered?

- Yes the concepts of identification and risk are the main criteria

28. Is A discharged from an agreement after he co-signs B's credit application and B then agrees to a higher rate of interest without telling A?

- Yes, A is the surety and not updating the surety results in contract discharge

33. Can the homestead exemption sometimes operate to cancel out a portion of a lien on a debtor's real property?

- Yes, it exempts furniture, clothing, vehicles, animals, work equipment

48. Under Chapter 13, must a repayment plan provide for the same treatment of each claim within a particular class of claim?

- Yes, same treatment within particular class of claim

38. If a voluntary petition in bankruptcy is found to be proper, would the court's entry of an order for relief put an automatic stay into place?

- Yes, this will suspend further actions by the creditors

46. Under Chapter 11, what debtor's obligations are most likely to be discharged?

- Any claim not protected under the reorganization plan

25. What is an implied warranty of merchantability?

- Any time a merchant who deals in the goods sold makes a sale. Ski merchant sells skis.

29. What would require a president's personal guaranty to pay a loan for her business be in writing if the business defaults on the loan?

- After the president fails to pay the debt and the collector contacts the guaranty.

50. Under Chapter 13, after the completion of all payments under the plan, which debts will the court grant a discharge of?

- All debts provided in the payment plan

9. Recognize an example of an offer that is irrevocable for a stated period of time?

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