Bus Law Test 3

brandon files for a chapter 11 bankruptcy on behalf of his company, Brandon's BBQ the company is allowed to continue its operations during this period. Brandon is

- the debtor in possession -a trustee

a mortgage will typically contain

-a description of the property -the amount of the debt involved

In a sole proprietorship, profits are taxed to the

Individual owner of the proprietorship

Len agrees to sell Doug some choice ocean-front property. If Len later refuses to convey the land, Doug may sue for

Specific performance

In many states, a mortgagor has the right to redeem the property by paying the debt within: a. the statutory redemption period

a "reasonable" period

partners in a partnership owe each other

a fiduciary duty

A creditor who obtains an interest in the property of a debtor without the debtor's express agreement may obtain

a lien

a sole proprietorship comes into existence when

a person begins to do business for herself

which of the following items are not distinguished by a chapter 7 bankruptcy

alimony

unless otherwise stated by contract, the law of partnership presumes which of the following not to be true?

all of the above are true -each partner has an equal voice in partnership management - a majority vote controls ordinary business decisions - profits are to be divided among the partners -regardless of the amount invested in the partnership, each partner has an equal vote

Which of the following are necessary for a security interest to attach

all of the other specific choices are correct

Chapter 11 bankruptcies, which are filed by businesses

allow a business to keep operating under reorganization of its activities and its debts

chapter 11 bankruptcy's, which are filed by businesses

allow a business to keep operating under reorganization of its activities and its debts

voluntary chapter 13 bankruptcies

apply to individuals only

a secured creditor is one who

can take a debtor's property to try to satisfy the debt

the final stage of bankruptcy is known as

discharging bankruptcy

when a business lends another business money, it should perfect its security interest by

filing its financing statement with the state secretary of state

when a business lends another business money, it should perfect its security interest by

filling its financing statement with the state secretary of state

bankruptcy law

is federal statutory law

the law of mortgages comes from

state real estate law

in general, if a partnership agreement does not specify what happens in case of the death or departure of a partner, one looks to

uniform partnership act

unless otherwise stated by contract, the law presumes which of the following out to be true

-each partner has an equal voice and partnership management - a majority vote controlled ordinary business decisions -profits are to be divided among the partners -regardless of the amount that's in the partnership, each partner has an equal vote

the owner of a sole proprietorship

-is legally the same as the business -is taxed same as the business -may hire any number of employees

a written partnership agreement typically specifies the following except

-the ownership interest of the partners -the method of accounting to be used -the name of the partnership business - the procedures for dissolution of the partnership

If the borrower is unable to pay the mortgage, the mortgagee has the right to

fore-close on the property

in a ___, the debit or make same monthly payment and more that can be added to the amount of overtime

installment account

a certification of incorporation from the government

is necessary for a corporation to be recognize legally

the primary distinction in secured credit transaction is whether the property

is real or personal

a creditor is a person or business who

lends money to someone

a creditor is a person or business who

lends money to someone else

the business organization that has a least one general partner and other investors who have limited liability is a

limited partnership

under chapter 13, which kind of that is subject to a different repayment schedule

long term, secure debt

don borrows 90,000 to buy a home. His mortgage is with Western Bank. Don is unable to make his mortgage payments. Western forecloses on DOn's house and sells it in a judicial sale. The bank gets $95,000 for the house. In this case, it

must return the extra $5,000 to Don

under a floating lien

new inventory is used to replace old collateral

if a debtor refuses to pay an unsecured creditor, and the debtor in insolvent, unsecured creditor collects

nothing

if a debtor refuses to pay an unsecured creditor, and the debtor is insolvent, the insolvent, the unsecured creditor collects

nothing

a ___ is an association of two or more persons to carry on a business as co-owners for profit

partnership

In order to establish a superior right, a creditor must

perfect the security interest

to create a legally valid security interest, a business must ensure that the interest is

perfected

in order to establish a superior right, a creditor must

prohibit default or

in a (an), the debtor makes a minimum monthly payment and more debt can be added to the account overtime

revolving account

in the case of bankruptcy, which of the following classes of creditors have highest priority

secured creditors

the board of directors of the corporation are elected by

shareholders

candy bought a sofa from max on credit. she is to make 5 monthly payments of $200 each. after one month cady stops making payments. Max is a secured creditor; he may

take steps to repossess the sofa from candy

An attached interest means

the customer has transferable rights in the collateral and has signed the debt instrument

Lisa goes to the local appliance store and buys an oven on credit. The store extends her credit. The store's security interest in the oven perfects when

the store files the financing statement with the Secretary of State

billy wants to borrow $10,000 to start a male belly dancing business. Creditors are not anxious to lend him the funds. Billy convinces Gary to back up his credit. Gary is

the surety

The Lanham Act provides for

the use by government of all patents

A creditor can obtain the property of a debtor

through operation of law and if the debtor enters into such an arrangement

tiny borrows $2000 from First Bank. Mike is the surety on the lawn. Tiny defaults and first requires Mike to pay the balance of the loan. In this case, Mike may sue

tiny for reimbursed or exonerated him