Quiz Mods 23-34 Flashcards
In most instance the insurable interest requirement is…2
1 satisfied by ownership
2 but not always the case
Example when insurable interest is satisfied without ownership
Long term lessee may have insurable interest
Common law requires that the insurable interest in property exist at…
Time loss occurs
Non-notification of the surety by the creditor of the release of collateral will…2
1 Release surety to extent it was damaged by non-notification
2 Which will likely be entire amount
When the surety has assumed that the creditor had possession of collateral that could pay off the debt and was not notified by creditor of the change this would…
Adversely affect the risk of the surety
When the creditor failed to notify the surety of partial surrender of debtor’s collateral, the surety may have estimated…2
1 A much smaller potential financial risk and
2 the risk has changed without the knowledge of the surety
Fraudulent transfer 2
1 transfer made by debtor within 2 years prior to date of bankruptcy
2 debtor did not receive FV in exchange for asset
Copyrights are…
Personal property
Copyrights are personal property as they are the…
result of individual effort and initiative
Copyrights are not…
Not real property
Plumbing fixture, while at one time personal property, when the fixtures were in the hardware store are transmuted into fixtures when they are permanently built into the building making them…
Real property
Common law considers air rights to be…
Realty
Realty generally includes the surface estate and estates below (mineral) and above the land (air rights) unless…
They’ve been severed
Example of estates have been severed
2) what are they still considered?
Oiled and gas rights have been sold
2) still considered real property
An endorsement that reads “Leo Gottlieb, without recourse, for collection only” is what kind of endorsement? Why?
Restrictive endorsement
Because it limits the rights of the next holder
An endorsement that reads “Leo Gottlieb, without recourse” is what kind of endorsement?
Qualified endorsement
When a mortgagor records the mortgage, that gives them rights against the…
Claims of subsequent bona Fide purchasers for value
Once of the defenses available to a responsible party under CERCLA is that…
2) what is this known as?
The occurrence was an act or omission of a Third Party
2) Third Party Defense
To make use of the Third-Party Defense, the responsible party must show that the…3
1 third party was solely responsible for hazardous condition
2 third party was not their employee
3 no contractual relationship exists with the third party
Constructive trust, define 2
1 equitable device that calls for agent to be trustee of ill gotten
goods or
2 income for the principal
Composition agreement AKA Composition of creditors 2
1 debtor enters into agreement with creditors, where debtor agrees
To pay creditors fraction of debt
2 agreement discharges debtor once debt is actually paid
Assignment for benefit of creditors 2
1 transfer by debtor of all his assets to trustee
2 with assigned funds used to pay off outstanding debts
Assignment for benefit of creditors does not have…
Does not have Effect of releasing debtor from debts
Under the Bankruptcy Reform Act of 2005, a debtor is entitled to a homestead exemption of…
$21,625 indexed for inflation
Voidable preference is…
A transfer made by debtor to creditor before debtor declared
Bankruptcy
Voidable preference gives the creditor advantage…
Over other creditors
When voidable preference occurs, the Federal Bankruptcy Code allows for…2
1 The trustee to set aside the security interest
2 which secures payment of obligation
If a party creates and patents a new process and another party develops the same process independently without knowledge of the patent…
The first party to create the process will prevail
BACT is the emission limitation that achieves maximum reduction of pollutants considering…3
1 energy
2 environmental
3 economic factors
Absent Fraud by bankrupt debtor, the failure to list a creditor would…
Not revoke a debtor’s general discharge
The debt owed to one creditor not listed will…
Not be discharged
Contract rights which are personal to the individual…
Cannot be assigned
OSHA may make an on-site inspection of a workplace at…
The request of employees
An OSHA on-site inspection must be done either under…
1 authority of search warrant or
2 with consent of employer
An OSHA search warrant may be issued as a result of…2
1 routine investigation
2 it need not be based on probable cause
A security agreement must be in writing unless…
Unless the secured party has possession of the collateral
If the secured party has possession of the collateral, she must…
Exercise reasonable care to preserve the collateral
The secured party is also responsible to…2
1 send termination statement once debt is paid
2 communicate amount of unpaid debt at debtor’s request
When a contract is assigned one party transfers rights under the contract to…
Another person who was not a party to the original contract
Assigning a security interest to another person would…
Prevent the original secured party from collecting the debt owed
When it comes to a Secured party assigning a security interest to another party…
The debtor cannot make this request
The holder’s oral renunciation of that prior party’s liability does not…
Doesn’t discharge a prior party to a commercial instrument
Cancellation of a prior party’s endorsement…
Does discharge prior party to the instrument
Under the UCC Sales Article, the warranty of title may be excluded by the seller’s statement that…
It is selling only such right or title that it has
The use of “as is”
Disclaimer designed to exclude implied warranty of merchantability
The insurable interest doctrine has been developed to…
Prevent individuals from purchasing insurance in hopes that insured property has been damaged or destroyed
