The bankruptcy trustee in a Chapter 7 proceeding is accountable for administering the debtor’s estate.

Choose the right answer!

Business Law, Text and exercise

Question 11 pts

A mortgage is a security interest in a debtor’s real property.

TRUE

FALSE

Flag this Question Question 21 pts

Mortgage insurance compensates a debtor for losses due to a default on a mortgage loan.

TRUE

FALSE

Flag this Question Question 31 pts

The bankruptcy trustee in a Chapter 7 proceeding is accountable for administering the debtor’s estate.

TRUE

FALSE

Flag this Question Question 41 pts

In a Chapter 7 proceeding, unsecured creditors’ claims are subordinate to the claims of securedcreditors.

TRUE

FALSE

Flag this QuestionQuestion 51 pts

In a Chapter 11 proceeding, a debtor corporation and its creditors agree on a plan under which the corporation pays a portion of its debt.

TRUE

FALSE

Flag this Question Question 61 pts

Under Chapter 13, all debts are dischargeable.

TRUE

FALSE

Flag this QuestionQuestion 71 pts

An insurable interest in property need not exist when a policy insuring against its damage or loss is purchased.

TRUE

FALSE

Flag this QuestionQuestion 81 pts

Misstatements in an insurance application can void a policy.

TRUE

FALSE

Flag this QuestionQuestion 91 pts

Bram applies for a homeowners’ insurance policy with Castle Insurance Inc. through Dian, an agent. In this transaction, Dian is

AN AGENT FOR BOTH PARTIES.

BRAM’S AGENT, NOT CASTLE’S AGENT.

CASTLE’S AGENT, NOT BRAM’S AGENT.

AN AGENT FOR NEITHER PARTY.

Flag this QuestionQuestion 101 pts

Construction Cranes LLC wants to insure the equipment that it leases to its customers. To obtain insurance, the company must have an insurable interest in the property

AT THE TIME A PREMIUM IS PAID.

AT THE TIME A LOSS OCCURS.

AT THE TIME A POLICY IS OBTAINED.

CONTINUOUSLY FROM THE TIME A POLICY IS OBTAINED TO THE TIME A LOSS OCCURS.

Flag this QuestionQuestion 111 pts

Essentially, real property is moveable, while personal property is not.

TRUE

FALSE

Flag this QuestionQuestion 121 pts

Persons who share ownership rights simultaneously in particular property are concurrent owners.

TRUE

FALSE

Flag this QuestionQuestion 131 pts

When one tenant in common dies, that party’s interest in the property automatically passes to the surviving owners.

TRUE

FALSE

Flag this QuestionQuestion 141 pts

Frank owns a collection of rare musical instruments. His ownership includes the rights to use, sell, or give away the property, On Frank’s death, his interest in the collection will pass to

THE NEAREST REPOSITORY OF RARE MUSICAL INSTRUMENTS.

THE STATE.

FRANK’S HEIRS.

NONE OF THE CHOICES.

Flag this QuestionQuestion 151 pts

To create a bailment, the property must be delivered to the bailor.

TRUE

FALSE

Flag this QuestionQuestion 161 pts

If the property is stolen, the bailee forfeits the right to its possession.

TRUE

FALSE

Flag this QuestionQuestion 171 pts

A bailee has a right to the reimbursement of costs incurred in keeping the bailed property.

TRUE

FALSE

Flag this QuestionQuestion 181 pts

After agreeing to rent a car from Drive-a-Round Inc., Eden is given the keys to one of the agency’s cars by Fess, a Drive-a-Round employee. With respect to the bailed property, this is

A PHYSICAL DELIVERY.

A CONSTRUCTIVE DELIVERY.

AN INVOLUNTARY DELIVERY.

NOT A DELIVERY.

Flag this QuestionQuestion 191 pts

Real property consists of land, and does not include anything attached to it.

TRUE

FALSE

Flag this QuestionQuestion 201 pts

Tile and carpeting permanently attached to the floor of a house are most likely intended to be fixtures.

TRUE

FALSE