Test 2

Question 1

Obligation of applicant seeking insurance coverage to insurance company

Answer 1

Must act under good faith, otherwise the insurance policy is void (must answer questions truthfully)

Question 2

obligation of insurance company in drafting an insurance policy for an applicant

Answer 2

Must outline what is and isn’t covered by the policy, company is liable for ambiguity. (Insurance is to determine whether something caused the damage

Question 3

Requirement for beneficiary to collect on damage done to property

Answer 3

Must have equitable interest, if sold on credit then it may happen (can claim if does not own property)

Question 4

Requirement for beneficiary to collect on injury or illness on themselves or other persons

Answer 4

Must have insurable interest in that individual at the time they acquired the insurance

Question 5

Requirements for enforceable holographic will

Answer 5

Written in the will makers handwriting, will makers signature, mental capacity, distribution of things, (does not need a witness).

Question 6

Requirements of a trust

Answer 6

Intent for settlor to create a trust, Existing income producing property (res), definite language as to who is the beneficiary, trustee independently manages the res

Question 7

Duties of the trustee

Answer 7

no conflict of interest, safe and under control, understand terms,

Question 8

General rule regarding revocability of trust by settlor

Answer 8

not revocable, however, in Texas it is allowed

Question 9

Elements of Environmental Impact Statement

Answer 9

National Environmental Policy Act

obligation that any government interaction give a detailed statement that looks at the environmental impact (includes anyone that receives federal funding)

must be realistic alternatives stated

Question 10

Bases for standing to challenge an action that will have or having an environmental impact

Answer 10

Standing is KEY DEFENSE

indirect impacts

aesthetic impacts

recreational impacts

enjoyability impact

CAN’T BE ASPIRATIONAL IMPACT

Question 11

Liability of co-signer for debt of debtor if guarantor v. surety

Answer 11

Guarantor- their obligation to pay the bill of a debtor only arises if there is a judgement against the debtor

surety- can be gone after without judgement

can argue not to pay for the same reason the debtor didn’t pay

Question 12

Violations under the Fair Debt Collection Practices Act

Answer 12

can’t discuss debts with third persons other than spouse

misrepresent themselves as attorney or law enforcement

communicate with people with known attorney

communicating at place of employment

repeated continuous calls

outside of 8am to 9pm

Question 13

Artisan v. mechanic’s lien: priority over all other conflicting security interests and
difference/distinction between both

Answer 13

Artisans lean is on personal property. they get first priority

mechanics lien on land

if item brought in for repair is sold, only liable for value not sentimental value

Question 14

Requirements of a security agreement

Answer 14

Agreement is written

debtor has equitable interest in the secured collateral

recognition of security interest generally signed or agreed to by debtor

general description of secured collateral

Question 15

Requirements for repossession and sale of repossessed collateral

Answer 15

needs a security agreement

creditors must try and get the best price possible

creditors are given their dues

the surplus is returned back to the debtor

Question 16

Requirements of a financing statement

Answer 16

debtors information

secured party’s information

collateral description

GIVES PERFECTION

Question 17

Duration of a financing statement and requisites for enforceable continuation statement

Answer 17

Only lasts for 5 years, but me renewed within 6 months before expiration

Question 18

Criteria for/impact of ‘automatic’ v. ‘super’ perfection of consumer good

Answer 18

automatic perfection- where a business is selling consumer to the debtor must have item in their inventory

super perfection- only applies to consumer goods

Question 19

Perfection of PMSI in inventory

Answer 19

automatic perfection dealing with inventory. Receive secured interest in inventory

Question 20

Perfection of PMSI in equipment

Answer 20

automatic perfection in equipment, secured on the equipment over creditors, reposes equipment

Question 21

Buyer in the ordinary course of business v. good faith purchaser

Answer 21

Buyer in ordinary course of business- purchases an item in a normal business setting, collateral is the item, if the business goes bankrupt and balance is owed, they just pay it off

Good faith purchaser - next door neighbor, neighbor keeps what they bought

Question 22

Bulk sales law requirements

Answer 22

protects creditors from companies selling their assets to avoid paying debts

Question 23

Treatment/consequences of fraudulent transfer v. preferential transfer of asset

Answer 23

A fraudulent transfer occurs when a debtor intentionally or constructively transfers an asset to hinder, delay, or defraud creditors.

Can go back at least 2 years

must be returned to bankruptcy estate

A preferential transfer occurs when a debtor pays certain creditors within a specific period before filing for bankruptcy. The goal is to ensure equitable distribution of assets among creditors.

90 day period

return payment to estate

Question 24

What is property Insurance for

Answer 24

risk shifting not prevention

Question 25

can creditors take from trusts

Answer 25

no, unless they are in Texas

Question 26

CERCLA

Answer 26

Comprehensive environmental response compensation liability act.

requires anybody who is in the chain of title with regard of property to share in cleanup of property where there is hazardous waste

executives can be charged as well

every state needs to identify 10 hazardous waste sites to EPA

Question 27

RCRA

Answer 27

Resource conservation and recovery act

deals with future

requires EPA to provide standards for future storage of waste

Question 28

what is perfection

Answer 28

top of the list

Question 29

Requriements of a will

Answer 29

testamentary capacity, at least 2 witnesses that aren’t receiving anything,

Question 30

how is property distributed

Answer 30

personal property 1/3 to spouse
2/3 to children
wife gets life estate

Question 31

What is the order of property distribution

Answer 31

descendants, ascenders collaterals

Question 32

Codicil

Answer 32

adds or takes away from the will

Question 33

What would make a codicil void

Answer 33

if a kid takes care of mom/dad and gets more of the property there would be undue influence

Question 34

CIRCLA must identify—- and does not—-

Answer 34

all hazardous waste sites and does not have to wait for an accident to occur

Question 35

RICRA deals with —- and requires EPA to—–

Answer 35

future and requires EPA to provide standards of future storage of waste

Question 36

Garnishment of wages

Answer 36

court will allow a person to take a certain percentage of a person’s wages

if it hinders a person’s ability to live life with necessities then we are subject to treble damages

Question 37

super perfection

Answer 37

only applies to consumer goods

Question 38

PMSI and financing statements

Answer 38

must file within 20 days of delivering goods if they want to have a claim on what they delivered for inventory

and must file before 20 days after for equipment

Question 39

laughin heir stature

Answer 39

distantly related rando gets the shit