Mod 23-32 Quiz

Question 1

In most states, when a principal is partially disclosed, the agent is…2

Answer 1

1 Also treated as a party to contract and can be held liable for
Contractual nonperformance

2 principal is also liable

Question 2

A Reaffirmation agreement would be enforceable only if…

Answer 2

It was not rescinded before discharge

Question 3

Reaffirmation agreements 2

Answer 3

1 Agreements made by debtor to pay certain debts

2 even while obtaining discharge in bankruptcy

Question 4

Some debtors will do reaffirmation agreements in order to…

Answer 4

Maintain trade credit relationships to permit them to start a
New business

Question 5

Reaffirmation agreements have to be filed with…

Answer 5

The bankruptcy court prior to discharge

Question 6

For reaffirmation agreements, unless the court objects…

Answer 6

They are automatically approved

Question 7

There is no limitation on…

Answer 7

The type of debt a debtor may reaffirm

Question 8

The UCC authorizes that a carrier can limit their liability by…2

Answer 8

Contractually stating a dollar limit on such risks

2) this may require high insurance costs to the shipper

Question 9

The release of one co-surety without the knowledge and consent of the debtor and other co-surety generally…

Answer 9

Releases the other co-surety to the extent of the proportionate responsibility of cosurety who was released

Question 10

When 2 sureties are equally responsible for the debt, the release of one will…

Answer 10

Have the effect of releasing the other for 50% of the debt

Question 11

Normally if the co-surety could or would not pay, the other co-surety would be…2

Answer 11

1 responsible to the creditor for the entire obligation and

2 assume the right of Subrogation against both the debtor and defaulting co-surety

Question 12

The filing of a financing statement only…

Answer 12

Only gives public notice of security interest

Question 13

A financing statement is…2

Answer 13

1 effective for 5 years

2 but can be continued with a continuation statement filing

Question 14

With a financing statement, since a continuation statement can be filed indefinitely…

Answer 14

Is makes a financing statement effective indefinitely

Question 15

Under the UCC, a sale or return contract is a conditional sale where…3

Answer 15

1 title

2 possession and

3 risk of loss pass from seller to buyer

Question 16

Under UCC sale or return contract the buyer retains the option to…

Answer 16

1 Return some or all of the goods at the buyers expense and risk of
Loss

2 during the specified period even though the goods conform to
The contract

Question 17

The Uniform Partnership Act presumes that profits and losses are…2

Answer 17

1 Distributed equally among the partners

2 unless the partnership agreement provides to the contrary

Question 18

When a partnership agreement only specifies the division of losses, profits are…

Answer 18

Divided equally among partners

Question 19

If a surety agreement is elicited by fraud on part of the debtor, the surety remains liable unless…

Answer 19

The surety can show that the creditor was aware of the fraud committed by the debtor

Question 20

Security interest has priority when one creditor…

Answer 20

Perfects before the other

Question 21

Upon dissolution of a partnership, what is the order of payment 4

Answer 21

1 creditors are paid first
2 loans to partners are repaid second
3 return of capital contributions is paid third
4 profit or loss is distributed according to the terms of the
partnership

Question 22

Partially disclosed principal

Answer 22

Party whose existence, but not specific identity is known to third
Party at time of contracting