Quizz 4
Francois Bouchard
Hello everybody,
Here’s my Quiz 4, now I could start enjoying a bit of my holidays before starting module 9 and 10!
Francois
· Question 1
0 out of 0.5 points
| Which one of the following statements is true with regard to a conditional sale of a computer to a consumer? Answer | ||||||||
| |||||||||
· 
Question 2
0.5 out of 0.5 points
| In which situation below is the debtor giving a chose in action as collateral security to the creditor? Answer | ||||||||
| |||||||||
· Question 3
0.5 out of 0.5 points
| Which of the following statements is true under the Bankruptcy and Insolvency Act? Answer | ||||||||
| |||||||||
· Question 4
0.5 out of 0.5 points
| Angelova asks you to finance her upcoming theatre production; she needs $10,000. She does not have a car or a house, but many companies have promised to pay for the theatre tickets that she has sent them. What type of security interest would you take? Answer | ||||||||
| |||||||||
· Question 5
0.5 out of 0.5 points
| Nick has a consulting business with monthly billings of $4,000. He rents his office, hardware, and furniture, and owns few assets. Nick rents his apartment, has no car, and spends most of his income on leisure. If he came to you and asked to borrow $10,000 for the purpose of increasing his working capital, which of the following securities would you most likely request? Answer | ||||||||
| |||||||||
· Question 6
0.5 out of 0.5 points
| From which of the following borrowers would a chartered bank not be able to obtain security under section 427 of the Bank Act (1991)? Answer | ||||||||
| |||||||||
· Question 7
0.5 out of 0.5 points
| Which of the following accurately describes a means by which a security interest can be perfected? Answer | ||||||||
| |||||||||
· Question 8
0.5 out of 0.5 points
| Which one of the following is true about a pledge? Answer | ||||||||
| |||||||||
· Question 9
0.5 out of 0.5 points
| Of the preferred creditors, which of the following has the highest priority of claim? Answer | ||||||||
| |||||||||
· Question 10
0 out of 0.5 points
| In case of default by the debtor, what can a secured creditor do? Answer | ||||||||
| |||||||||
· Question 11
0.5 out of 0.5 points
| Which of the following statements correctly describes a finance lease? Answer | ||||||||
| |||||||||
· Question 12
0.5 out of 0.5 points
| Which one of the following statements is true about secured transactions in provinces having a Personal Property Security Act? Answer | ||||||||
| |||||||||
Tuesday, July 31, 2012 7:30:14 PM EDT
Maryam Jan Mohammadi
Question 1
Answer
Selected Answer: The creditor takes possession of the collateral security and holds it until repayment. The debtor keeps title to the collateral security.
Correct Answer: The creditor takes possession of the collateral security and holds it until repayment. The debtor keeps title to the collateral security.
Answer Feedback: You are correct! The creditor has possession of the goods used as security and will transfer possession to the debtor, who still has title to the goods, when he is repaid. (Topic 8.3)
0.5 out of 0.5 points
Answer
Selected Answer: The lease is meant to protect the owner’s financial investment in the chattel.
Correct Answer: The lease is meant to protect the owner’s financial investment in the chattel.
Answer Feedback: You are correct! In a security lease, a type of purchase lease, the intent is to transfer ownership to the lessee when the lease terminates. If the lessee defaults on its rental payments, the owner will be able to step in and retake possession of the chattel. So the lease protects the owner’s financial investment. (Topic 8.2)
0.5 out of 0.5 points
Answer
Selected Answer: (i) Lessor and (ii) lessee
Correct Answer: (i) Lessor and (ii) lessee
Answer Feedback: You are correct! The lessor transfers possession of the property for a period of time, and the lessee provides consideration in the form of a periodic money payment. (Topic 8.2)
0.5 out of 0.5 points
Answer
Correct Answer: Assignment of accounts receivable
0.5 out of 0.5 points
Answer
Correct Answer: A receiving order is initiated by the creditors of the debtor.
Answer Feedback: You are correct! A receiving order is initiated by the creditors of the debtor. (Topic 8.6)
0.5 out of 0.5 points
Answer
Correct Answer: A proposal allows an insolvent debtor to avoid bankruptcy.
0.5 out of 0.5 points
Answer
Selected Answer: In a chattel mortgage and in a conditional sale, the debtor has possession of the collateral security, and the creditor has title.
Correct Answer: In a chattel mortgage and in a conditional sale, the debtor has possession of the collateral security, and the creditor has title.
Answer Feedback: You are correct! In a chattel mortgage and in a conditional sale, the debtor has possession of the collateral security, and the creditor has title. (Topic 8.3)
0.5 out of 0.5 points
Answer
Correct Answer: Repossess the secured goods and sell them
Answer Feedback: You are correct! The creditor can repossess the secured goods and sell them when the debtor defaults. (Topic 8.3)
0.5 out of 0.5 points
Answer
Selected Answer: The seller transfers title in the goods once the last payment has been made.
Correct Answer: The seller transfers title in the goods once the last payment has been made.
Answer Feedback: You are correct! In a conditional sale, the seller retains title or property in the goods sold but possession of the property is transferred to the buyer who will pay the purchase price in a series of instalments. Title is transferred to the buyer once the last payment has been made. (Topic 8.3)
Question 10
Answer
Selected Answer: It is incidental to the main contract.
Correct Answer: It is incidental to the main contract.
Answer Feedback: You are correct! Collateral security is property pledged by the promisor as a guarantee that it will perform its obligation. It is collateral or incidental to the main purpose of the contract between the parties. (Topic 8.3)
0.5 out of 0.5 points
Answer
Selected Answer: Promissory notes, drafts, and cheques
Correct Answer: Promissory notes, drafts, and cheques
Answer Feedback: You are correct! A negotiable instrument is a written document, a chose in action such as a bill of exchange (or a bank draft), a promissory note, or a cheque, which is evidence of a promise, express or implied, to pay a specific sum of money to the order of a specific person or to a bearer. (Topic 8.1)
0.5 out of 0.5 points
Answer
Selected Answer: Assignment of accounts receivable
Correct Answer: Assignment of accounts receivable
Answer Feedback: You are correct! Accounts receivable are choses in action. (Topic 8.3)
Source: Ruth Yates, Business Law in Canada: Test Item File, 6th edition (Prentice Hall, 2002), Question 44, page 359. ISBN: 0-13-088202-X
-----Original Message-----
From: lw1-s...@googlegroups.com on behalf of Francois Bouchard
Sent: Tue 7/31/2012 7:36 PM
To: lw1-s...@googlegroups.com
Subject: {LW1 Summer} Quizz 4
Hello everybody,
Here's my Quiz 4, now I could start enjoying a bit of my holidays before
starting module 9 and 10!
Francois
0 out of 0.5 points
Which one of the following statements is true with regard to a conditional
sale of a computer to a consumer?
Answer
Selected Answer:
The conditional seller could sell the computer and keep all the proceeds of
that sale, even if they were greater than the debt and costs.
Correct Answer:
In a conditional sales contract, the result of satisfying the condition is
that the lien or charge will be removed from the goods used as security.
Answer Feedback:
Incorrect. The debtor has the right to any surplus over and above what is
realized from the sale. The correct answer is, title is transferred to the
buyer once the last payment has been made. (Topic 8.3)
Source: Ruth Yates, Business Law in Canada: Test Item File, 6th edition
(Prentice Hall, 2002), Question 25, page 352. ISBN: 0-13-088202-X
http://www.mycgaonline.org/images/ci/icons/generic_updown.gifQuestion 2
0.5 out of 0.5 points
In which situation below is the debtor giving a chose in action as
collateral security to the creditor?
Answer
Selected Answer:
A student pledges her Canada Savings Bonds to the bank for a loan to
purchase a computer.
Correct Answer:
A student pledges her Canada Savings Bonds to the bank for a loan to
purchase a computer.
Answer Feedback:
You are correct! Bonds are choses in action. A bond, like a cheque or a
promissory note, is paper that represents an obligation to pay. (Topic 8.3)
http://www.mycgaonline.org/images/ci/icons/generic_updown.gifQuestion 3
0.5 out of 0.5 points
Which of the following statements is true under the Bankruptcy and
Insolvency Act?
Answer
Selected Answer:
A proposal allows an insolvent debtor to avoid bankruptcy.
Correct Answer:
A proposal allows an insolvent debtor to avoid bankruptcy.
Answer Feedback:
You are correct! A proposal is an arrangement between the debtor and its
creditors that allows an insolvent debtor to avoid bankruptcy. (Topic 8.6)
http://www.mycgaonline.org/images/ci/icons/generic_updown.gifQuestion 4
0.5 out of 0.5 points
Angelova asks you to finance her upcoming theatre production; she needs
$10,000. She does not have a car or a house, but many companies have
promised to pay for the theatre tickets that she has sent them. What type of
security interest would you take?
Answer
Selected Answer:
Assignment of accounts receivable
Correct Answer:
Assignment of accounts receivable
Answer Feedback:
You are correct! The creditor is given the right to collect money owed to
the business in the event of a default. (Topic 8.3)
http://www.mycgaonline.org/images/ci/icons/generic_updown.gifQuestion 5
0.5 out of 0.5 points
Nick has a consulting business with monthly billings of $4,000. He rents his
office, hardware, and furniture, and owns few assets. Nick rents his
apartment, has no car, and spends most of his income on leisure. If he came
to you and asked to borrow $10,000 for the purpose of increasing his working
capital, which of the following securities would you most likely request?
Answer
Selected Answer:
Assignment of accounts receivable
Correct Answer:
Assignment of accounts receivable
Answer Feedback:
You are correct! The creditor is given the right to collect money owed to
the business in the event of a default. (Topic 8.3)
Source: Ruth Yates, Business Law in Canada: Test Item File, 6th edition
(Prentice Hall, 2002), Question 32, page 354. ISBN: 0-13-088202-X
http://www.mycgaonline.org/images/ci/icons/generic_updown.gifQuestion 6
0.5 out of 0.5 points
From which of the following borrowers would a chartered bank not be able to
obtain security under section 427 of the Bank Act (1991)?
Answer
Selected Answer:
A builder
Answer Feedback:
You are correct! Fishermen, manufacturers, and farmers are all specified
types of borrowers mentioned in section 427 of the Bank Act. Builders are
not. (Topic 8.5)
http://www.mycgaonline.org/images/ci/icons/generic_updown.gifQuestion 7
0.5 out of 0.5 points
Which of the following accurately describes a means by which a security
interest can be perfected?
Answer
Selected Answer:
The creditor takes possession of the asset given in security.
Correct Answer:
The creditor takes possession of the asset given in security.
Answer Feedback:
You are correct! Perfection occurs when a creditor takes possession of the
assets given in a security. (Topic 8.4)
http://www.mycgaonline.org/images/ci/icons/generic_updown.gifQuestion 8
0.5 out of 0.5 points
Which one of the following is true about a pledge?
Answer
Selected Answer:
The creditor transfers possession in the goods once the last payment has
been made.
Correct Answer:
The creditor transfers possession in the goods once the last payment has
been made.
Answer Feedback:
You are correct! In a pledge or pawn, a creditor (pawnbroker) takes
possession of the goods as security, but the debtor retains title.
Possession will be transferred back to the debtor when the loan has been
repaid. (Topic 8.3)
http://www.mycgaonline.org/images/ci/icons/generic_updown.gifQuestion 9
0.5 out of 0.5 points
Of the preferred creditors, which of the following has the highest priority
of claim?
Answer
Selected Answer:
Expenses and fees of the trustee in bankruptcy
Correct Answer:
Expenses and fees of the trustee in bankruptcy
Answer Feedback:
You are correct! The expenses and fees of the trustee in bankruptcy rank
highest in priority of claim among the list of preferred creditors provided.
(Topic 8.7)
http://www.mycgaonline.org/images/ci/icons/generic_updown.gifQuestion 10
0 out of 0.5 points
In case of default by the debtor, what can a secured creditor do?
Answer
Selected Answer:
Repossess the secured goods, sell them and keep any surplus from the sale of
the secured goods
Correct Answer:
Repossess the secured goods and sell them
Answer Feedback:
Incorrect. When the creditor sells the secured goods, any surplus must be
remitted to the debtor. The correct answer is, the creditor can repossess
the secured goods and sell them when the debtor defaults. (Topic 8.3)
http://www.mycgaonline.org/images/ci/icons/generic_updown.gifQuestion 11
0.5 out of 0.5 points
Which of the following statements correctly describes a finance lease?
Answer
Selected Answer:
The lease is meant to protect the third party's financial investment in the
chattel.
Correct Answer:
The lease is meant to protect the third party's financial investment in the
chattel.
Answer Feedback:
You are correct! In a finance lease, a third party advances the funds to the
owner/vendor, takes title (ownership) to the chattel, and transfers
possession to the lessee. If the lessee defaults on its rental payments, the
third party will be able to step in and retake possession of the chattel.
(Topic 8.2)
http://www.mycgaonline.org/images/ci/icons/generic_updown.gifQuestion 12
0.5 out of 0.5 points
Which one of the following statements is true about secured transactions in
provinces having a Personal Property Security Act?
Answer
Selected Answer:
All kinds of security arrangements involving personal property as collateral
now come under one statute.
Correct Answer:
All kinds of security arrangements involving personal property as collateral
now come under one statute.
Answer Feedback:
You are correct! A single Act, the Personal Property Security Act, governs
all transactions where personal property is taken as security. (Topic 8.4)
Source: Ruth Yates, Business Law in Canada: Test Item File, 6th edition
(Prentice Hall, 2002), Question 39, page 357. ISBN: 0-13-088202-X
Tuesday, July 31, 2012 7:30:14 PM EDT
11930_1&course_id=_544_1&nolaunch_after_review=true');> OK
--
