PURDUE MGMT 455 EXAMS SCRIPT UPDATED
QUESTIONS AND ANSWERS SURE A+
✔✔The Indiana Lemon Law states that a person who purchased a vehicle covered by
the law must allow the dealer 4 attempts to fix the vehicle. If the dealer is unable to fix,
the purchaser has the RIGHT to demand either the return of his money & some other
expenses, or a car of comparable value to replace the "lemon". - ✔✔True
✔✔The Security Deposit Law does apply to university housing or sororities/fraternities
along with private landlords. - ✔✔False:
only private landlords
✔✔A landlord may legally lockout a tenant if the tenant is behind on rent. - ✔✔False:
may NOT legally lockout a tenant.
Landlord must pursue any legal remedies in court.
✔✔If the landlord converts the tenant's property to their own use, the tenant is entitled
to sue the landlord for conversion & request a judgement for 3x the value of the items
plus attorney fees. - ✔✔True
✔✔Unless a landlord has agreed to make needed and essential repairs and fails to do
so & the tenant makes the repairs himself, then the tenant may deduct the cost of the
repairs from the next month's rent. - ✔✔True
✔✔The Innkeeper's Lien Law only applies to transient tenants that don't pay their rent
when due. It does NOT apply to long term tenants. - ✔✔True
✔✔The Security Deposit Law requires the landlord to reimburse the tenant for any
portion of the unused security deposit within 60 days of the end of the lease following
the tenant providing a written forwarding address and turned in key to landlord. -
✔✔False:
45 days
✔✔The primary limiting factor deals with the amount of control a principal is asserting
over a person. An employee has more control, and an independent contractor has less
control. - ✔✔True
✔✔Independent contractors are NOT liable for their own contracts and torts. - ✔✔False:
they ARE liable for own contracts & torts
✔✔A Mechanic's lien is a security interest in the title to property for the benefit of those
who have supplied labor or materials that improve the property. The lien exists for both
real property and personal property. - ✔✔True
, ✔✔A contractor can not put a lien on the property of the owner that they did the work
for. - ✔✔False:
the contractor can put a lien on the property
✔✔If a contractor/subcontractor/supplier of material to a jobsite is not paid, then they
can file a mechanic's lien against the property of which work was done. - ✔✔True
✔✔If a mechanic's lien is foreclosed, the homeowner may have their home sold to pay
the bill, which includes attorney fees incurred by the supplier/contractor/subcontractor. -
✔✔True
✔✔If an employee is not paid their wages owed accrued from normal hours or overtime,
they have a right to sue for double the wages plus attorney's fees. - ✔✔True
✔✔Chapter 7 is where the debtor will not pay any money to creditors & will lose all
property that is in excess of exemptions to the trustee. - ✔✔True
✔✔Chapter 13 is where the debtor, who has a regular income, will pay something to all
creditors and the debtor will keep their property after a plan must be presented which
calls for payment of his disposable income each month to the Trustee. - ✔✔True
✔✔Chapter 9 is where a municipality will file bankruptcy and present a plan by which it
will restructure its debts. - ✔✔True
✔✔A person may have part of their bankruptcy thrown out of court if they have
concealed assets, lied in court or filed a chapter 7 within the past 8 years. - ✔✔False:
entire bankruptcy thrown out
✔✔Some debts will be discharged in a Chapter 7: malicious injury to property, child
support or alimony, court fines, and property settlement debts. - ✔✔False:
will NOT be discharged
✔✔In Chapter 13 bankruptcy, "disposable earnings" means the gross amount of money
earned by a debtor each month minus income taxes & minus living expenses. - ✔✔True
✔✔Disposable earning/income is paid to the trustee to pay out to creditors who file
claims in the proceedings. - ✔✔True
✔✔In a Chapter 13 bankruptcy, after a debtor successfully pays all the money proposed
in the plan, any balance still owed to creditors by the end of the plan will still need to be
paid. - ✔✔False:
any balance owed to creditors by end of the plan will be considered paid in full
QUESTIONS AND ANSWERS SURE A+
✔✔The Indiana Lemon Law states that a person who purchased a vehicle covered by
the law must allow the dealer 4 attempts to fix the vehicle. If the dealer is unable to fix,
the purchaser has the RIGHT to demand either the return of his money & some other
expenses, or a car of comparable value to replace the "lemon". - ✔✔True
✔✔The Security Deposit Law does apply to university housing or sororities/fraternities
along with private landlords. - ✔✔False:
only private landlords
✔✔A landlord may legally lockout a tenant if the tenant is behind on rent. - ✔✔False:
may NOT legally lockout a tenant.
Landlord must pursue any legal remedies in court.
✔✔If the landlord converts the tenant's property to their own use, the tenant is entitled
to sue the landlord for conversion & request a judgement for 3x the value of the items
plus attorney fees. - ✔✔True
✔✔Unless a landlord has agreed to make needed and essential repairs and fails to do
so & the tenant makes the repairs himself, then the tenant may deduct the cost of the
repairs from the next month's rent. - ✔✔True
✔✔The Innkeeper's Lien Law only applies to transient tenants that don't pay their rent
when due. It does NOT apply to long term tenants. - ✔✔True
✔✔The Security Deposit Law requires the landlord to reimburse the tenant for any
portion of the unused security deposit within 60 days of the end of the lease following
the tenant providing a written forwarding address and turned in key to landlord. -
✔✔False:
45 days
✔✔The primary limiting factor deals with the amount of control a principal is asserting
over a person. An employee has more control, and an independent contractor has less
control. - ✔✔True
✔✔Independent contractors are NOT liable for their own contracts and torts. - ✔✔False:
they ARE liable for own contracts & torts
✔✔A Mechanic's lien is a security interest in the title to property for the benefit of those
who have supplied labor or materials that improve the property. The lien exists for both
real property and personal property. - ✔✔True
, ✔✔A contractor can not put a lien on the property of the owner that they did the work
for. - ✔✔False:
the contractor can put a lien on the property
✔✔If a contractor/subcontractor/supplier of material to a jobsite is not paid, then they
can file a mechanic's lien against the property of which work was done. - ✔✔True
✔✔If a mechanic's lien is foreclosed, the homeowner may have their home sold to pay
the bill, which includes attorney fees incurred by the supplier/contractor/subcontractor. -
✔✔True
✔✔If an employee is not paid their wages owed accrued from normal hours or overtime,
they have a right to sue for double the wages plus attorney's fees. - ✔✔True
✔✔Chapter 7 is where the debtor will not pay any money to creditors & will lose all
property that is in excess of exemptions to the trustee. - ✔✔True
✔✔Chapter 13 is where the debtor, who has a regular income, will pay something to all
creditors and the debtor will keep their property after a plan must be presented which
calls for payment of his disposable income each month to the Trustee. - ✔✔True
✔✔Chapter 9 is where a municipality will file bankruptcy and present a plan by which it
will restructure its debts. - ✔✔True
✔✔A person may have part of their bankruptcy thrown out of court if they have
concealed assets, lied in court or filed a chapter 7 within the past 8 years. - ✔✔False:
entire bankruptcy thrown out
✔✔Some debts will be discharged in a Chapter 7: malicious injury to property, child
support or alimony, court fines, and property settlement debts. - ✔✔False:
will NOT be discharged
✔✔In Chapter 13 bankruptcy, "disposable earnings" means the gross amount of money
earned by a debtor each month minus income taxes & minus living expenses. - ✔✔True
✔✔Disposable earning/income is paid to the trustee to pay out to creditors who file
claims in the proceedings. - ✔✔True
✔✔In a Chapter 13 bankruptcy, after a debtor successfully pays all the money proposed
in the plan, any balance still owed to creditors by the end of the plan will still need to be
paid. - ✔✔False:
any balance owed to creditors by end of the plan will be considered paid in full
