Question

1. Ms. Douglas, owner of a small advertising firm, wants to borrow $15,000 from Mr. Caster, a wealthy, retired real estate agent. Ms. Douglas wants to buy a laser printer and a computer program for desktop publishing which will make her firm more productive. Ms. Douglas has monthly billings of $4,000, owns two computers and a car but rents her office and other equipment. Her husband, Frank, is an accountant employed by another company and does not work for the company owned by Ms. Douglas. Which of the following would be the least likely type of security requested by Mr. Caster to secure repayment of the debt? a. Guarantee b. Chattel mortgage under the Personal Property Security Act c. Assignment of book accounts under the Personal Property Security Act d. Security under the federal Bank Act over inventory. 2. Which of the following is correct with respect to the meaning of an insurable interest? a. The insurance company must have received a premium before it can be said to have an interest in the agreement and be bound to pay when a claim is made. b. This term describes when a person has taken out insurance on something. c. The person taking out the insurance contract must be in a position that he will suffer a loss equal to the amount claimed if the insured-against event occurs. d. An insurable interest means that the person causing the loss is required to show enough interest in what he is doing to be careful. e. The beneficiary or person receiving payment must have an ownership interest in the thing being insured. 3. An owner had contracted with a general contractor who in turn had contracted with Jim, a subcontractor, for work on a construction site. If Jim is not paid, which of the following is false? a. Jim can file a builders lien against the owner’s property for the amount unpaid, as long as the time limit for filing a lien has not expired. b. Jim can sue the contractor for breach of contract. c. Jim cannot file a builders lien against the owner's property but he can sue the owner directly for the amount owed him because his work and materials went into the owner's house. d. To provide for the possibility of builders liens being filed, the owner is required to hold back 10% of the contract price from the contractor for a period of time.

I need the answer in an hour

Answer 1

1.a) Guarantee

The guarantee is a legal term more comprehensive and of higher import than either warranty or "security". It most commonly designates a private transaction utilizing which one person, to obtain some trust, confidence, or credit for another, engages to be answerable for him. It is to be differentiated from the colloquial "personal guarantee" in that a Guarantee is a legal concept that produces an economic effect.

2.c)The person taking out of the insurance contract must be in a position that he will suffer a loss if the insured against the event occurs.

In case of insurance, the policyholder must be negatively affected by the loss-making it an insurable interest to avoid which he/she has taken the insurance

3.c)Jim cannot file a builder lien against the owner's property but he can sue the owner directly for the amount owed him because his work and materials went into the owner's house.

a builder or contractor can sue against the house owner in case of nonpayment because the subcontractor has the legal right.