BLAW ch 14,15,16

TRUE

Improper filing of a financing statement can render a security interest unperfected. T/F

true

A bank may contractually shift to its customer the risk of forged checks created electronically or otherwise by the use of non-manual signatures t/f

false

T/F....To qualify for a Chapter 7 bankruptcy, a debtor must complete a means test to determine whether the debtor has been living within his or her means.

TRUE

A check may fall under Uniform Commercial Code Article 3 as a negotiable instrument and be subject to UCC Article 4 in the course of collection. T/F

true

A check may fall under Uniform Commercial Code Article 3 as a negotiable instrument and be subject to UCC Article 4 in the course of collection.t/f

false

A gratuitous agent can be liable to a principal for breach of contract, even in the absence of a contract, but not liable for the negligent performance of the deal. t/f

false

Agency relationships cannot exist outside an employment, so agency law has a narrower reach than employment law. t/f

false

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

FALSE

An independent contractor is, by definition, an employee. T/F

false

An independent contractor is, by definition, an employee. t/f

true

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

false

Any person—including individuals, but not partnerships or corporations—may be a debtor under Chapter 7.

can be held to guarantee payment of the debt

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.....

TRUE

Because checks serve as a substitute for cash, they can facilitate financial record keeping. T/F

true

Because the speed of check-processing time is increasing, to avoid overdrafts, an account-holder needs to verify that funds are available to cover a check when it is written. t/f

the degree of the employer's control over the details of the work

Bread Company hires Craig to sell the company's products in a certain area. Bread agrees to pay Craig a salary, plus commission, for a trial period. They also agree that he can sell using any methods and during any hours that seem appropriate. The key factor in whether Craig is Bread's employee is.....

writ of execution

Brewery Company's debt to Credit Service is past due. Credit obtains a judgment against Brewery, but the firm refuses to pay. Credit asks the court to order the seizure of Brewery's property. This is a request for...

a. a writ of execution

Brewery Company's debt to Credit Service is past due. Credit obtains a judgment against Brewery, but the firm refuses to pay. Credit asks the court to order the seizure of Brewery's property. This is a request for... a. a writ of execution b. an artisan's lien c. a mechanic's lien d. a writ of attachment

c. can be held to guarantee payment of the debt

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.. a. must be sold to provide payment b. none of the choices c. can be held to guarantee payment d. must be returned to the debtor within a certain period of time

d. writ of attachment

Business Sales Inc.'s debt to Cartage Company is past due. Cartage brings a legal action against Business Sales to collect. To ensure that a judgment in the creditor's favor will be collectible, Cartage asks the court to order the seizure of the debtor's property. This is a request for.. a. a mechanic's lien b. a writ of execution c. an artisan's lien d. a writ of attachment

a writ of attachment

Business Sales Inc.'s debt to Cartage Company is past due. Cartage brings a legal action against Business Sales to collect. To ensure that a judgment in the creditor's favor will be collectible, Cartage asks the court to order the seizure of the debtor's property. This is a request for....

TRUE

Business as we know it could not exist without secured transactions because otherwise sellers and lenders would be less likely to sell and lend on credit. T/F

a cashiers check

Elmore pays Fidelity Bank $1,000 plus a service fee to draw a check on itself made payable to Go Delivery Service. This is a.....

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. t/f

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. t/f

false

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

c. agreement

Ingmar asks Jess to contract with Kay's Lawn Service to maintain Ingmar's lawn. Jess orally agrees to do so. This is an agency by A. operation of law b. estoppel c. agreement d. none of the choices

a. none

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 a. none b. an agent c. an agent and principal d. a principal

false

Once a bankruptcy petition is properly filed, creditors can commence or continue most legal actions against the debtor to recover claims. T/F

false

Once a bankruptcy petition is properly filed, creditors can commence or continue most legal actions against the debtor to recover claims. t/f

one of the requirements

Owen is given value by Payday Sales Company in the form of a commitment to sell goods on credit. In terms of creating an enforceable security interest, this is

an employee

Ray is a delivery driver for Sicilian Pasta Company. Ray does exactly what the company tells him. Ray is...

C. an order of garnishment

Refresh Inc.'s debt to Spring Water Company is past due. Spring brings a legal action against Refresh to collect the debt. Spring asks the court to order Tempo Bank, in which Refresh has an account, to pay a portion of the funds to Spring. This is a request for... a. an artisan's lien b. a writ of execution c. an order of garnishment d. an order that would violate state laws

An order of garnishment

Refresh Inc.'s debt to Spring Water Company is past due. Spring brings a legal action against Refresh to collect the debt. Spring asks the court to order Tempo Bank, in which Refresh has an account, to pay a portion of the funds to Spring. This is a request for....

c. disposing of the collateral in any commercially reasonable manner

Ron borrows funds from Suburban Bank secured by Ron's house. Ron defaults on the debt. The bank's options include... a. retaining he security interest & pursuing a judicial remedy b. destroying the collateral and collecting the unpaid debt from Ron c. disposing of the collateral in any commercially reasonable manner d. repossessing the collateral and disavowing the security interest

false

T/F ....Any person—including individuals, but not partnerships or corporations—may be a debtor under Chapter 7.

false

T/F ...To qualify for a Chapter 7 bankruptcy, a debtor must complete a means test to determine whether the debtor has been living within his or her means.

false

T/F The duties that an agent owes a principal must be set forth in the agency agreement because they do not arise by operation of law.

true

T/F.....When an agent, acting within the scope of his or her authority, contracts with a third party, a disclosed principal is liable to the third party.

false

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

FALSE

T/F....The duties that an agent owes a principal must be set forth in the agency agreement because they do not arise by operation of law.

true

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

false

The principal is bound by the agent's unauthorized act, unless the principal negates it. t/f

true

To avoid liability for negligence, a customer must examine monthly bank statements and canceled checks promptly and with reasonable care, and report any forged signatures to the bank.

true

To avoid liability for negligence, a customer must examine monthly bank statements and canceled checks promptly and with reasonable care, and report any forged signatures to the bank. t/f

true

Under the principles of agency law, any sale of goods by a salesperson in a store to a customer can be binding on the owner of the store. t/f

c. vista estate's other creditors

United Contractors Inc. holds a lien on Vista Estate's real property. This property can be sold to satisfy the debt if, before the sale, notice is given to.. a. the state in which the property is located b. the general public c. Vista Estate's other creditors d. vista estate

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. t/f