BLAW FINAL
The title to land is:
-a covenant running with the land -a right to use some land some time, for a limited purpose -non-transferable -the government's right to restrict the use of privately held land -NONE OF THE ABOVE
The most common way in which to transfer ownership interests in property is through a legal document known as:
-a device -a will -easements appurtenant -tenancies in the extremity -NONE OF THE ABOVE
Which of the following debts are not extinguished by a Chapter 7 bankruptcy?
-alimony and child support payments -back taxes -debts incurred by fraud against creditors -fined owed to the government -ALL OF THE ABOVE
Furniture, since it is movable, is an example of:
-fake property -intangible property -taxless property -real property -NONE OF THE ABOVE
One who possesses lands by any right or title is referred to as a:
-holder -possessor -lord -private property owner -NONE OF THE ABOVE
Deeds do which of the following:
-identify the original owner -describe the land -identify the new owner -state that ownership is being transferred -ALL THE ABOVE
Once bankruptcy proceedings are finished, the consumer's credit record:
-is wiped clean -may not mention the first bankruptcy a person has had -may note the bankruptcy for up to seven years -may always show that the person went through a bankruptcy -NONE OF THE ABOVE
Which of the following is not a characteristic of adverse possession?
-it is hostile use of another person's land -the adverse user has no legal right to occupy the land -the use of land is exclusive -the possession of the land is continuous -ALL OF THE ABOVE ARE CHARACTERISTICS
Which of the following is not real property
-land -minerals -buildings -trees -ALL ARE REAL PROPERTY
If there are "defects" found in a title during a title search the title is said to be
-misty -opaque -misunderstood -misdeed -NONE OF THE ABOVE
Real property includes which of the following:
-oil -land -trees -buildings -ALL OF THE ABOVE
Which of the following is an example of personal property:
-patents -land -buildings -trees -NONE OF THE ABOVE
Which of the following is an example of a form of tenancy:
-tenancy in common -joint tenancy -tenancy by the entirety -ALL OF THE ABOVE
A profit is:
-the right of first refusal when an estate is sold -the right to go on to an estate -the right to sell an estate -the right to buy an estate -NONE OF THE ABOVE
A life estate grants a person:
-the right to live on a property even if it is sold to another party -the right to be a tenant for up to 60 years -the right to be a tenant until retirement -exemption from property taxes -NONE OF THE ABOVE
The primary objective of the trustee is:
-to deplete the debtor's estate -to protect general creditors first -to ensure that the debtor's exempt property is liquidated -to maximize the amount of the debtor's assets that the trustee is paid -NONE OF THE ABOVE
Negotiable instruments are important to business because they allow for the orderly creation and transfer of rights to the payment of money.
True
A quitclaim deed is:
a deed of conveyance that passes whatever interests the grantor had in the property
A warranty deed is:
a deed that promises that a good, clear title to the property is being conveyed by the grantor
A special warranty deed is:
a deed that warrants that the buyer has received title and that the property was not encumbered during the ownership by the grantor
Which of the following is not a servitude:
a life estate
Title recordings provide:
a public record of who owns what and of limitations or claims on titles
An easement is:
a right to enter land owned by another and make certain use of it
Which of the following debts are not extinguished by a Chapter 7 bankruptcy?
alimony
Title insurance:
binds the title company to insure that the title is as declared in the conveyance from the grantor to the grantee
The final stage of bankruptcy is known as:
discharge in bankruptcy
A burden on another person's estate is a(n):
easement
A balloon note has one large payment up front then a series of smaller payments over time.
false
A debtor filing for Chapter 7 bankruptcy must provide a list of all immediate family members because persons such as spouses may be liable for the bankrupt person's debts.
false
A negotiable instrument is a promise by one party to pay an undefined sum of money to another party. There are two parties: the maker and the payee. While the amount to be paid may vary, the date of payment must be set at a specific time in the future.
false
A note involves two parties, the maker and the payee. Payment must be on demand.
false
A suretyship is a guarantee by the debtor that he will repay his loans.
false
Certificates of deposit are not negotiable because they are specific contracts between banks and payees.
false
Collateral is the one term in a debt instrument that always must be specified.
false
In a bankruptcy proceeding, all creditors must be paid an equal share of the assets available, according to the amount of debt owed.
false
Negotiable instruments payable "to bearer" are considered the safest form.
false
Once a bankruptcy is finished, bankrupts are relieved of paying all debts.
false
Orders to pay include notes and certificates of deposit.
false
Promises to pay include drafts and checks.
false
The drawer owes money to the drawee in a negotiable instrument.
false
The final stage of bankruptcy is the dissolution stage.
false
The most common bankruptcy proceeding is known as adjustment of debt.
false
The party who agrees to make a payment to another party, based on a document presented to it, such as a bank, is called the drawer.
false
The party who issues or creates a document that requests payment, probably from a bank, is called the drawee.
false
The role of the trustee is to minimize the amount of the debtor's assets available for distribution to creditors.
false
To attach a security interest, the agreement must be signed by the debtor.
false
Under Article 3 of the UCC, a draft is a conditional promise to pay that involves three parties in distinct capacities: drawer, drawee, and payee.
false
When real estate is used to back up a note, it is called a collateral note.
false
When the maker of a note promises to repay the note in specific installments over time, it is a balloon note.
false
The framers of the Constitution specifically made bankruptcy a matter of:
federal law
The most common form of real property ownership is:
fee simple
Real property differs from personal property in that real property:
is immovable while personal property is movable
Unlike real property, personal property:
is movable
Filing for bankruptcy under Chapter 7 of the bankruptcy code results in ____ of debts.
liquidation
A clear title means that:
no other person can claim valid ownership of the property
Land, since it is immovable, is an example of:
real property
Filing for bankruptcy under Chapter 13 of the bankruptcy code results in ____ of debts.
reorganization
Bankruptcy discharge is:
the final stage of the bankruptcy proceeding for individuals
The right of possession of the property and the right to exclude others from the use of the property are two examples of rights normally possessed by:
the holder of title to the property
Unlike in most countries, subsurface mineral rights in the United States often belong to:
the landowner
Property is:
the legally protected expectation of being able to use a thing for one's advantage
A deed is:
the means by which the owner of property has legal possession of the property
Fee simple is:
the most common form of real property ownership
The formal right of ownership of property is:
the title
Property interests are people's right:
to deny others the use of "things" in which there is a legal interest
The primary objective of the trustee is:
to maximize the amount of the debtor's assets available for distribution to creditors
A cashier's check is a form of check in which the bank is both the drawer and the drawee
true
A check is a draft drawn on a bank and payable on demand.
true
A guarantor is the same as a surety.
true
A negotiable instrument may be transferred in two basic ways. If the instrument is made "to the order" of the payee, the payee must (1) endorse the instrument and (2) deliver the instrument to a third party. If the instrument is made "to bearer," the party in possession of the instrument is required only to deliver it to transfer it.
true
A person who files bankruptcy may not file again for another eight years.
true
Although commercial paper may be negotiable or non-negotiable, a dispute could be resolved differently depending on whether the instrument is categorized as negotiable or non-negotiable.
true
For a check, the bank is the drawee
true
If a draft is sold to another party before it comes due, it is discounted.
true
If you sign a personal promissory note to cover debts owed by your business and the business fails, you will be held personally liable on the debt.
true
In a draft, the drawee is the party ordered to pay a certain sum of money to a third party.
true
In a suretyship arrangement, the person borrowing the money is known as the principal.
true
Negotiable instruments began many years ago as a written promise or order to pay a certain sum of money.
true
Not all promises to pay are negotiable instruments.
true
Once issued, a negotiable instrument can be transferred by assignment or by negotiation to another party.
true
One of the most common defenses a surety may raise is that material changes were made to the debt contract, thus releasing the surety
true
Orders to pay include drafts and checks.
true
Promises to pay include notes and certificates of deposit.
true
The amount of money owed in a debt is called the principal.
true
The debts owed to secured creditors have the greatest protection in bankruptcy proceedings.
true
The law governing bankruptcy is federal statutory law.
true
The maker or the drawer may create a bearer instrument by using the following language: "to bearer" or "to the order of bearer."
true
The party to receive a payment from a negotiable instrument is called the payee.
true
The party who agrees to make a payment to another party, based on a document presented to it, such as a bank, is called the drawee.
true
The party who borrows money (gets credit) is called the creditor.
true
The party who issues or creates a document that requests payment, probably from a bank, is called the drawer.
true
Under Article 3 of the UCC, a check is an unconditional written order to pay that involves three parties in distinct capacities: drawer, drawee, and payee. The drawee must be a bank. Payment must be "on demand."
true
Under Article 3 of the UCC, a note is a promise by one party to pay a certain sum of money to another party. Two parties are involved: the maker and the payee. Payment may be set at some time in the future.
true
When personal property is used to back up a note, it is called a collateral note.
true
When the maker of a note promises to repay the note at specific dates over time, it is called an installment note.
true
he drawee owes money to the drawer in a negotiable instrument.
true
A tenancy in common is one in which:
two or more persons have equal interests in the property with no right of survivorship
A joint tenancy is one in which:
two or more persons have equal interests in the property with rights of joint survivorship
Bankruptcy proceedings hold that transfers of debtor's property ____to the bankruptcy filing are void.
up to 90 days prior
A deed in which the seller or grantor warrants that the property is free of any liens or encumbrances unless they are revealed in the title is a(n):
warranty deed
