Question

9.      Chapter 13 bankruptcy

a. is available to corporations.

b. is available to partnerships.

c. permit a business to reorganize while paying its debts.

d. is available to individuals.

e. a and c.

10.    A secured creditor is one who

a. does not back a loan with the debtor’s property.

b. has the ability to take the debtor’s property to satisfy the debt.

c. does not have the ability to take the debtor’s property to satisfy the debt.

d. uses collateral to obtain a loan.

e. is typically insolvent.

11.    By definition, a sale under Article 2 of the UCC requires that

a. both parties involved be merchants.

b. contracts be for goods or services; that the sale be between merchants; and that the sale take place in the normal course of commerce

c. the transaction not be classified as a bailment.

d. title to the goods pass from the seller to the buyer, which would include gifts.

e. title to the goods pass from the seller to the buyer and that a price be paid for the good.

12.    A debtor is said to be in _________ if they cannot make payments when they are due.

a. relapse.

b. expire.

c. attach.

d. default

e. the process of perfecting its claim.

Answer 1

Answer 9 - Option d ) is available to individuals

Explanation : Chapter 13 enables individuals with regular income to develop a plan to repay all or part of their debts.

Answer 10 - Option d) uses collateral to obtain a loan

Explanation : A secured creditor is one who uses credit product backed by a collateral..

Answer 11 - Option e) title to the goods pass from the seller to the buyer and that a price be paid for the good.

Explanation : By definition a sale under Article 2 of the UCC requires that title to the goods pass from the seller to the buyer and that a price be paid for the good.

Answer 12 - Option d) default

Explanation : A defaulter debtor is the one who can not make the payments when they are due.