Question 1

A(n)________ is an arrangement in which a third party promises to be secondarily liable for the payment of another's debt.

Accepted Answer

The answer of A(n)________ is an arrangement in which a...

Question 2

An arrangement in which a third party promises to be primarily liable with the borrower for the payment of the borrower's debt is referred to as ________.

Accepted Answer

A surety arrangement involves a third party who agrees to be primarily liable for the debt along with the borrower, meaning the creditor can demand payment from the surety without first seeking payment from the borrower.

Question 3

Which of the following is true about the surety's liability to pay in a surety arrangement?

Accepted Answer

In a surety arrangement, the surety is primarily liable for payment, meaning the creditor can demand payment from the surety without first exhausting remedies against the principal debtor.

Question 4

The term ________ refers to a written document signed by a contractor, subcontractor, laborer, or material person, waiving his or her statutory lien against real property.

Accepted Answer

A lien release refers to a written document that waives the right of a contractor, subcontractor, laborer or material person to assert a statutory lien against real property. A garnishment refers to a legal process where a creditor collects a debt owed by a debtor by collecting money directly from the debtor's wages or bank account. An accommodation refers to an arrangement where a person provides assistance or lodging to another. A notice of lien refers to a written notice filed by a creditor to claim an interest in real property as security for a debt owed by the property owner.

Question 5

The term ________ refers to a contractor's, laborer's, and material person's statutory lien that makes the real property to which services or materials have been provided security for the payment of the services and materials.

Accepted Answer

The description provided in the question refers to a mechanic's lien. This type of lien is filed by contractors, laborers, and material persons who have supplied services or materials for a construction project and have not been paid. The lien gives them a legal claim to the property as security for the payment of the outstanding balance.

Question 6

Creditors that violate the Consumer Lease Act are subject to the civil and criminal penalties provided in the ________ Act.

Accepted Answer

The Consumer Lease Act is part of the Truth-in-Lending Act, so it makes sense that creditors violating the Consumer Lease Act would be subject to penalties under the Truth-in-Lending Act.

Question 7

Stanley lost a court case against Wade and was ordered to pay $50, 000 in compensation to Wade.But the day after the judgment, Stanley went missing, leaving Wade with no direct contact to recover the money.Wade then obtained a writ that allowed the government to order the bank in which Stanley had his savings to pay Wade.Which of the following writ did Wade motion to obtain the payment order?

Accepted Answer

Wade motioned for a writ of garnishment, which allows for the garnishing of funds from a bank account in order to recover a debt owed.

Question 8

Which of the following federal statutes requires creditors to disclose finance charge, including interest, points, and other fees paid for the extension of credit to debtors?

Accepted Answer

The Truth-in-Lending Act (TILA) requires creditors to disclose finance charges, including interest, points, and other fees paid for the extension of credit to debtors. TILA ensures that consumers receive accurate and uniform information about the costs of credit, which helps them make informed decisions.

Question 9

Gunther wins a $25, 000 judgment against Krissa.Krissa refuses to pay the amount of the judgment to Gunther.Krissa works for Iniversal Electronics.Gunther obtains a postjudgment writ of garnishment from the court whereby the court orders Iniversal Electronics to pay 25 percent of Krissa's weekly disposable earnings directly to Gunther.However, Gunther is not satisfied with the verdict and tries to motion the court to increase Krissa's pay deduction to 50 percent, but his request is denied.Which federal Act allows Krissa to retain 75 percent or more of her earnings in a writ of garnishment?

Accepted Answer

Title III of the Consumer Credit Protection Act limits the amount of money that can be garnished for unpaid debts, including judgments. It states that a person cannot be garnished for more than the lesser of 25 percent of their disposable earnings or the amount by which their earnings exceed 30 times the federal minimum wage. Therefore, Krissa can retain at least 75 percent of her earnings in the writ of garnishment. The other options listed (A, B, and D) do not pertain to wage garnishment limitations.

Question 10

The ________ is a postjudgment court order that permits the seizure of the debtor's property that is in the possession of the debtor.

Accepted Answer

A writ of execution is a court order that allows for the seizure of a debtor's property to satisfy a judgment.

Question 11

Regulation Z is an administrative agency regulation that sets forth detailed rules for compliance with the ________ Act.

Accepted Answer

Regulation Z is also known as the Truth-in-Lending regulation. It was issued under the authority of the Truth-in-Lending Act (TILA) and sets forth requirements for creditors in their dealings with consumers in connection with consumer credit transactions.

Question 12

Which of the following Acts protects debtors who are subject to writ of garnishment from excessive action?

Accepted Answer

Title III of the Consumer Credit Protection Act, also known as the Consumer Wage Garnishment Protection Act, protects debtors from having too much of their wages garnished. It limits the amount that can be garnished from a person's paycheck and provides other protections for debtors. The other options listed do not specifically address garnishment protections.

Question 13

Which of the following writs is a prejudgment writ?

Accepted Answer

A writ of attachment is a prejudgment writ that allows a party to seize property before a judgment is entered. The purpose of this writ is to ensure that the property will still be available to satisfy a judgment if the party is successful in their claim. The other options, writ of garnishment and writ of execution, are post-judgment writs used to collect on a judgment that has already been entered. Writ of exigent is not a recognized legal term.

Question 14

A postjudgment court order that permits the seizure of a debtor's property that is in the possession of third parties is known to as the ________.

Accepted Answer

A writ of garnishment is a postjudgment court order that permits the seizure of a debtor's property in the possession of third parties, such as a bank account or wages from an employer. A writ of attachment is a pre-judgment order that permits the seizure of a debtor's assets to ensure satisfaction of a debt if the debtor loses the lawsuit. A writ of prohibition is an order that prohibits a lower court from continuing to hear a case, and a writ of exigent is not a recognized legal term.

Question 15

Alan wins a $50, 000 judgment against Henderson.But Henderson refuses to pay the amount of the judgment to Alan.To counter Henderson, Alan obtained a postjudgment writ from the court whereby the court directs the town sheriff to seize Henderson's automobile and other property and have them publicly auctioned off to satisfy the judgment he owes Alan.Which of the following writs did Alan motion the court to seize Henderson's property?

Accepted Answer

A writ of execution is a court order that empowers a sheriff or other official to enforce a judgment by seizing property belonging to the debtor and selling it. In this case, Alan obtained a postjudgment writ of execution to seize Henderson's property and satisfy the judgment he owes. A writ of attachment is a court order that permits the seizure of property to secure a potential judgment in a later legal proceeding; a writ of garnishment directs a third party to pay debts owed to the debtor directly to the creditor; and a writ of exigent refers to an emergency situation that justifies a warrantless search or seizure by law enforcement.

Question 16

The ________ Act of 2010 is a federal statute that requires increased disclosure of credit information and terms to consumers and regulates consumer credit providers and others.

Accepted Answer

The Consumer Financial Protection Act of 2010 created the Consumer Financial Protection Bureau and established new requirements and standards for consumer credit providers and financial institutions. It aims to protect consumers from unfair, deceptive, or abusive practices in the financial industry.

Question 17

A prejudgment court order that permits the seizure of a debtor's property while a lawsuit is pending is known as the ________.

Accepted Answer

A writ of attachment is a court order that allows for the seizure of a debtor's property while a lawsuit is pending. It is used to secure assets that may be used to satisfy a judgment if the plaintiff is successful in their case. The other options, such as a writ of exigent, writ of execution, and writ of garnishment, do not typically involve the seizure of property while a lawsuit is pending.

Question 18

Tara lost a large sum of money to Judy when she invested in what she alleged was a fraudulent investment scheme run by Judy.So Tara sued Judy for fraud.However, as it would take more than a year before the case was heard, Tara was afraid that Judy would transfer any money or property she had to avoid having to pay a judgment if she lost at trial.Which of the following writ motions would help Tara stop Judy from doing so?

Accepted Answer

A writ of attachment would allow Tara to have a court order to seize and hold onto any of Judy's property or assets until the outcome of the trial. This would prevent Judy from transferring or hiding her assets to avoid paying a judgment. Option B) writ of execution is used after a judgment has been entered to collect the money owed by a debtor. Option C) writ of garnishment is used to collect a debt owed to the defendant by a third party, such as a bank or employer. Option D) writ of exigent is not a commonly used legal term.

Question 19

Which of the following Acts is particularly designed to regulate the home loan market, and put the burden on lenders to verify that a borrower can afford to repay the loan for which he or she has applied?

Accepted Answer

The Mortgage Reform and Anti-Predatory Lending Act is specifically aimed at regulating the home loan market and protecting borrowers from predatory lending practices. The act places responsibility on lenders to verify that a borrower can afford to repay the loan they are applying for, thereby preventing loans from being given to individuals who cannot afford to repay them.

Question 20

Which of the following is true of a guarantor in a guaranty arrangement?

Accepted Answer

The answer of Which of the following is true of...

Quiz 26: Credit,Mortgages,and Debtor's Rights

A(n) ________ is an arrangement in which a third party promises to be secondarily liable for the payment of another's debt.