ch 38, 46, and 50

International courts have authority to resolve a dispute only if the parties to the dispute accept the court's jurisdiction over the matter.

true

Legal title to property may be held by one or more persons while at the same time its use, enjoyment, and benefit belong to one or more others.

true

Legally adopted children are generally recognized as lawful heirs of their adopting parents.

true

Marriage generally revokes a will executed before the marriage, but divorce generally does not revoke a provision in the will of one party for the benefit of the other.

true

Ninety-nine percent of bankruptcy petitions are filed voluntarily.

true

The tariff is a frequently used device designed to protect domestic businesses.

true

Which of the following could be an exception to the sovereign immunity doctrine? a. The doctrine may be inapplicable to commercial activities of a foreign sovereign. b. A sovereign may waive its right to raise the doctrine as a defense. c. Either (a) or (b). d. Neither (a) nor (b), exceptions are not allowed.

c. Either (a) or (b).

Which of the following statements concerning wills and intestate succession is TRUE? a. If a person dies with a valid will, that person's estate most likely will be distributed according to the rules of intestate succession. b. Two people own a joint bank account as Joint Tenants with Right of Survivorship, the funds in the joint bank account will be distributed according to the will. c. If a person dies without a valid will, that person's estate most likely will be distributed according to the rules of intestate succession. d. None of the other answers are TRUE.

c. If a person dies without a valid will, that person's estate most likely will be distributed according to the rules of intestate succession.

Which of the following answers lists 2 items owned by a debtor either at the time of or prior to the bankruptcy filing that would most likely be included in the bankruptcy estate? a. The debtor's home and a vintage Mustang car that the debtor gave to his brother 3 weeks prior to the debtor's filing bankruptcy. b. The debtor's cash payment made to a creditor 2 years ago who would have received nothing in the bankruptcy and the debtor's furniture. c. Jewelry worth $100,000 (the amount over $25,000) and life insurance proceeds received by the debtor within 90 days after the debtor filed for bankruptcy. d. The debtor's retirement accounts and the debtor's car worth $25,000.

c. Jewelry worth $100,000 (the amount over $25,000) and life insurance proceeds received by the debtor within 90 days after the debtor filed for bankruptcy.

Which of the following will result in the revocation of a will? a. The testator is divorced after having executed the will. b. The testator executes a codicil. c. The testator marries after having executed the will. d. The testator tears the will in half thinking that it is a void "I.O.U."

c. The testator marries after having executed the will.

Which of the following is not a duty or power of a trustee under the Bankruptcy Code? a. To use, sell, or lease property of the estate b. To deposit or invest money of the estate c. To conduct the affairs of the debtor's estate for the trustee's own benefit d. To assume or reject any executory contract or unexpired lease of the debtor

c. To conduct the affairs of the debtor's estate for the trustee's own benefit

Which of the following individual debts may be discharged in bankruptcy? a. Customs duties b. Alimony and child support c. Unsecured consumer loans d. None of the above

c. Unsecured consumer loans

A __________ is an addition to or a revision of a will by a separate instrument. a. devise b. hologram c. codicil d. settlor

c. codicil

To incorporate by reference a memorandum into a will, all of the following conditions must exist except: a. it must be in writing. b. it must be in existence when the will is executed. c. it must be physically attached to the will. d. it must be adequately described in the will.

c. it must be physically attached to the will.

Under Chapter 3 of the Bankruptcy Code the filing of an involuntary petition operates as a stay against which of the following? a. Attempts by creditors to begin to recover claims against the debtor b. Attempts by creditors to continue to recover claims against the debtor c. The enforcement of judgments against the debtor d. All of the above

d. All of the above

Under Chapter 7, the court will not grant the debtor a discharge if the debtor: a. is not an individual b. has destroyed, concealed, or failed to keep records c. has transferred, removed, or concealed any of his property with intent to defraud his creditors within 12 months before the filing of the bankruptcy petition. d. In all the circumstances listed in these answers.

d. In all the circumstances listed in these answers.

Nancy has a diamond ring worth $50,000 that she inherited from her grandmother. Thinking she may need to file bankruptcy in the future, Nancy gives the ring to her brother as a gift on January 1, 2019. On June 1, 2020, Nancy files bankruptcy. Will the brother get to keep the ring? Choose the correct answer listing the correct reason. a. No, because the gift is a voidable preference. b. Yes, since Nancy gave the ring away more than a year before filing bankruptcy. c. Yes, because the ring was a gift to her brother. d. No, Nancy's gift of the ring is a fraudulent transfer.

d. No, Nancy's gift of the ring is a fraudulent transfer.

Chapter 7 of the Bankruptcy Code applies to which of the following debtors? a. Railroads b. Insurance companies c. Credit unions d. None of the above

d. None of the above

Almost all countries have their own immigration policies and regulations which require: a. that foreigners obtain valid passports before entering their borders. b. that their citizens have a passport to leave or reenter the country. c. that foreign citizens obtain a visa to enter the country for an identified purpose. d. all of the above.

d. all of the above.

An international contract should specify: a. what law will govern any breach or dispute. b. the official language of the contract. c. which nation's court will resolve disputes. d. all of the above.

d. all of the above.

If A executes a will leaving Blackacre to B, but then sells the land for $20,000 before he dies, on A's death, B will receive: a. Blackacre. b. $20,000. c. $20,000 and Blackacre. d. nothing.

d. nothing.

The trustee may avoid a fraudulent transfer made by the debtor on or within __________ before the date of the filing of the petition. a. 60 days b. 90 days c. 180 days d. one year

d. one year

On June 1, 2018, Aggie Corp. ("Aggie") filed Chapter 7 bankruptcy. Aggie owned two assets, an office building and inventory. Aggie has the following creditors: Aggie owes Second Bank $500,000 which is secured by a lien on the office building. Aggie owes Nomura $150,000 which is secured by a security interest on the inventory. Aggie owes the IRS $40,000 for 2018 income taxes Aggie owes one supplier $20,000 (unsecured) Aggie owes another supplier $30,000 (unsecured) The bankruptcy trustee sells the office building for $600,000 and the accounts receivable for $100,000. The administrative expenses for the bankruptcy are $10,000. Second Bank will receive $_____(1)_______ and Nomura will receive $______(2)________ under the bankruptcy. Choose the answer to correctly complete the blanks in their respective order: a. (1) $500,000 (2) $125,000 b. (1) $600,000 (2) $125,000 c. (1) $500,000 (2) $150,000 d. (1) $500,000 (2) $100,000 e. (1) $600,000 (2) $100,000

a. (1) $500,000 (2) $125,000

A Chapter 13 plan of reorganization may include all but which one of the following? a. Assets must be liquidated. b. Priority debts must be paid in full unless the debtor waives that right. c. Future wages must be controlled by the trustee. d. The rights of unsecured creditors may be modified.

a. Assets must be liquidated.

Which of the following is generally correct regarding the course of descent? a. At common law, property could not lineally ascend to one's parents. b. At common law, a stepchild was considered an heir. c. All states distribute property on a per capita basis. d. None of the above is correct.

a. At common law, property could not lineally ascend to one's parents.

Which of the following statements is TRUE regarding discharge in bankruptcy? a. In a Chapter 11 bankruptcy, the debtor receives the discharge when the plan is confirmed. b. In a Chapter 13 bankruptcy, the debtor receives the discharge when the plan is confirmed. c. In a Chapter 7 bankruptcies individuals as well as entities receive a discharge. d. In a Chapter 7 bankruptcy, the debtor receives the discharge when the plan is confirmed.

a. In a Chapter 11 bankruptcy, the debtor receives the discharge when the plan is confirmed.

Which of the following statements is TRUE? a. In a Chapter 11 or Chapter 13 bankruptcy, the debtor may remain in possession of the assets in the bankruptcy estate. b. A debtor is NOT required to attend the meeting of creditors. c. Even if a creditor does not receive notice of the bankruptcy, the creditor's claims will be subject to discharge in the bankruptcy. d. Priority Creditors are paid before Secured Creditors.

a. In a Chapter 11 or Chapter 13 bankruptcy, the debtor may remain in possession of the assets in the bankruptcy estate.

John's brother, Phil, loaned him $10,000 to start his business. John didn't do too well and planned to file for bankruptcy. In May, he gave Phil his car worth $8,000 to satisfy the debt. John filed his petition in November. After liquidation, if the car were included in John's bankruptcy estate, every unsecured debtor would have received 85% of the debt owing to him. Will the transfer of the car to Phil be a voidable preference? Choose the correct answer listing the correct reason. a. No, because Phil did not receive preferential treatment over other creditors. b. Yes, because the transfer was made within the prior year. c. Yes, since Phil is an insider. d. No, because the transfer was made more than 90 days prior to filing.

a. No, because Phil did not receive preferential treatment over other creditors.

In March, Margaret made a loan to Pete for $10,000. Three months later, she began to hear rumors about Pete's failing financial condition. When in July, Pete asked her to loan him an additional $2,000 to buy inventory, Margaret required a security interest in the inventory and also demanded that Pete secure the first loan with his personal automobile. In September, Pete filed bankruptcy. Will the security interest in the automobile be enforceable? Choose the correct answer for the correct reason. a. No, the security interest in the automobile would be a voidable preference. b. Yes, because Margaret is a secured creditor as to the automobile. c. Yes, since the security interest in the automobile was granted before the bankruptcy was filed. d. No, since the security interest in the automobile was granted before the bankruptcy was filed.

a. No, the security interest in the automobile would be a voidable preference.

One precaution that can be taken by U.S. firms to avoid economic loss caused by seizure of property by a foreign government is to obtain insurance from which federal agency: a. OPIC. b. ASEAN. c. the Commerce Department. d. the U.S. State Department.

a. OPIC.

Which of the following items is NOT a requirement for a valid written will, not including a holographic will? ALERT: This question is asking which of the below is NOT a requirement. a. The Testator must have capacity when they die for the will to be valid. b. Testator must have capacity when the Testator signs the will. c. All of the items listed in the other answers are NOT required for a valid written will. d. The signature of the Testator must be attested to by that state's required number of witnesses.

a. The Testator must have capacity when they die for the will to be valid.

A farmer was working on his land when he became trapped under his tractor. The farmer knew his injuries were extensive and that he might die. In order to ensure that his wife would get his property in that event, he took out his pocketknife and scratched a statement onto his tractor's fender. It read, "In case I die in this mess I leave all to my wife. Cecil George Harris." The farmer was found about 10 hours later but died the next day from the injuries. During his attempted rescue, the tractor fender was found and was eventually presented in probate court as evidence by his wife. What is the most likely finding of the probate court? a. The court would find that Harris had created a valid holographic will. b. This would be a gift causa mortisand it could only dispose of his personal property. c. The document was a nuncupative will and required witnesses in order to be valid. d. The writing was not valid as a will since it was not created with the required formalities such as witnesses.

a. The court would find that Harris had created a valid holographic will.

Creditors entitled to priority are paid before: a. unsecured creditors who file their claims on time. b. secured creditors. c. the debtor's attorney. d. Creditors entitled to priority are paid before all of the listed creditors.

a. unsecured creditors who file their claims on time.

Your rich Aunt Lotte has never married and has no children, so she has requested that you help her in her old age. She has a history of Alzheimer's in her family, but at this time, her mental capacity is fine. Choose the answer below that best describes what documents you should ask Aunt Lotte to sign now to help you manage her financial affairs and decisions about her health prior to her death. a. Only a living will, medical directive or medical power of attorney b. Both a durable power of attorney and one of the following - a living will, medical directive or medical power of attorney. c. Only a written will d. Only a durable power of attorney

b. Both a durable power of attorney and one of the following - a living will, medical directive or medical power of attorney.

The chapter of the Bankruptcy Code containing the provisions dealing with case administration is: a. Chapter 1. b. Chapter 3. c. Chapter 4. d. Chapter 5.

b. Chapter 3.

Which of the following debts would be discharged in bankruptcy? a. Student loans. b. Consumer credit loans for a stove. c. Child support obligations. d. State and local property taxes on a beach house.

b. Consumer credit loans for a stove.

When the debtor files a voluntary bankruptcy petitions which one of the following statements is NOT CORRECT? ALERT: THIS QUESTION IS ASKING WHICH ANSWER IS NOT CORRECT!! a. The bankruptcy estate is created which includes the debtor's non-exempt property. b. The bankruptcy estate of in a Chapter 7 bankruptcy will include an individual debtor's wages earned after filing. c. The automatic stay goes into effect preventing creditors from taking action to collect debts owed by the debtor. d. The bankruptcy estate of in a Chapter 13 bankruptcy will include an individual debtor's wages earned after filing.

b. The bankruptcy estate of in a Chapter 7 bankruptcy will include an individual debtor's wages earned after filing.

In which of the following situations will a will be declared invalid? a. The testator was incompetent most of the time, but executed the will during a period of lucidity. b. The will was executed under fraudulent circumstances. c. A will is invalid in both of the above circumstances. d. A will is not invalid under either of the above circumstances.

b. The will was executed under fraudulent circumstances.

On March 18, 1938, Mexican President Lázaro Cárdenas signed an order that seized the assets of one foreign oil company operating in Mexico. When a government takes foreign-owned property or assets owned by one company for a public purpose and pays just compensation for what was taken, a/an __________________ of property has occurred. a. distribution b. expropiration c. confiscation d. deregulation

b. expropiration

Denmark seized all of the property of Chemco, Inc., an American company located in Denmark, and assumed ownership of the property for a public purpose after payment of just compensation. This is known as: a. confiscation. b. nationalization or expropriation. (since nationalization is taking all assets of an "industry" vs. one company, the answer should be expropriation) c. sovereign immunity. d. none of the above.

b. nationalization or expropriation. (since nationalization is taking all assets of an "industry" vs. one company, the answer should be expropriation)

The Foreign Corrupt Practices Act (FCPA): a. prevents 'corruption' or pollution of the environment when U.S. businesses are engaged in international commence. b. prohibits a U.S. company or its agents from offering bribes to foreign officials for the purpose of influencing the official's acts or decisions. c. ensures that international tariffs are fair and equitable among all nations. d. all of the other answers are provided for in the FCPA.

b. prohibits a U.S. company or its agents from offering bribes to foreign officials for the purpose of influencing the official's acts or decisions.

Ken loaned Barbara $8,000 and secured payment of that loan by taking a security interest in Barbara's car. If Barbara files for bankruptcy when the value of the car is $4,500, what is Ken's status? He has a (n): Assume no interest was charged on the loan and that Barbara made no payments on the loan before filing for bankruptcy. a. secured claim for $8,000. b. secured claim for $4,500 and an unsecured claim for $3,500. c. unsecured claim for $8,000. d. secured claim for $3,500 and an unsecured claim for $4,500.

b. secured claim for $4,500 and an unsecured claim for $3,500.

Thomas dies intestate, leaving two surviving children, Colton, and Carolyn, and two grandchildren, Grant, and Grace, who are the children of Thomas' predeceased (died before Thomas) child, Cookie. Under the laws of intestate succession, Thomas' estate will go one-third to Colton one-third to Carolyn, and one-sixth each to Grant and Grace, Thomas' grandchildren, who divide equally (split or share) the one-third which would have gone to their mother. This is known as _____________________ distribution. Choose the answer that correctly completes the blank. a. testamentary b. per capita c. administrative d. per stirpes

d. per stirpes

An international contract should specify: a. What law will govern any breach or dispute. b. Provide for an easily enforceable method of payment. c. The official or governing language of the contract. d. Provide for arbitration and where that arbitration will be held. e. An international contract should specify all of the items listed in the other answers.

e. An international contract should specify all of the items listed in the other answers.

Which of the following statements is FALSE? ALERT: THIS QUESTION IS ASKING WHICH ANSWER IS FALSE!! a. A debt is an obligation to pay money owed by a debtor to a creditor. b. Individual debtors must receive credit counseling before filing a bankruptcy petition under most circumstances. c. The Bankruptcy Code grants to U.S. District Courts original and exclusive jurisdiction over all bankruptcy cases. d. A trustee in bankruptcy under Chapter 7 may sell property included in the debtor's estate. e. Any person eligible to be a debtor under a given bankruptcy proceeding may file a voluntary petition, but must be insolvent to do so.

e. Any person eligible to be a debtor under a given bankruptcy proceeding may file a voluntary petition, but must be insolvent to do so.

Which of the following statements is TRUE regarding the different bankruptcy chapters? a. In Chapter 13 the bankruptcy estate ONLY includes the debtor's property at the commencement of the bankruptcy proceeding. b. Bankruptcy under Chapter 13 may be filed by both individuals and entities. c. In Chapter 7 the bankruptcy estate ONLY includes the debtor's property at the commencement of the bankruptcy proceeding. d. Chapter 7 is normally the type of bankruptcy filed by individuals and entities with a regular income or cash flow. e. None of the other listed answers are TRUE.

e. None of the other listed answers are TRUE.

A plan of reorganization under Chapter 11 need not be confirmed by the court to be binding on the parties.

false

A secured creditor's claim is secured to the extent of the allowed amount of his claim, even if that amount exceeds the value of his interest in the debtor's property.

false

Federal bankruptcy law is generally superseded by state insolvency laws.

false

In certain circumstances, a testator may execute an irrevocable will.

false

The debtor's estate in bankruptcy includes any property received by the debtor by inheritance or as a beneficiary of a life insurance policy within one year after commencement of the case.

false

The rules of descent are uniform throughout the United States.

false

A discharge of a debt voids any judgment obtained at any time concerning that debt.

true

A plan under Chapter 13 will not be confirmed by the bankruptcy court if the value of the property to be distributed to unsecured creditors under the plan is less than they would receive under Chapter 7.

true

A valid will requires the testator to have mental capacity and be free from the undue influence of others.

true

A witness to a will must not have any interest under the will.

true

After creditors with secured claims and creditors with claims having a priority have been satisfied, creditors with allowed, unsecured claims share proportionately in any remaining assets.

true

Any person who may be a debtor under Chapter 7 (except stockbrokers and commodity brokers), and railroads may be a debtor under Chapter 11.

true

As the representative of the estate, the trustee in bankruptcy has the capacity to sue or to be sued.

true

Filing of a voluntary or involuntary petition prevents enforcement of judgments against a debtor.

true

The European Community has the power to make rules which are binding on member nations and which preempt its members' domestic laws.

true

The jurisdiction of the bankruptcy court and the operation of the bankruptcy laws are commenced by the filing of a voluntary or involuntary petition.

true

U.S. laws protecting intellectual property do not apply to transactions in other countries.

true

Under Chapter 11, the debtor will remain in possession of and management of the property of the estate unless the court appoints a trustee, who then may operate the debtor's business.

true

A codicil must be executed with all of the formal requirements of a will.

truee