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
