BUL 3310 Exam 3 Bailey- Questions &
Answers
Ruth had a contract to sell a vacation home she owned in North Carolina. Rather than make the
trip from Oregon for the closing, she gave her brother Ian, who lived in North Carolina, the
authority to represent her at the closing and to sign all the necessary papers. The notarized
document that confers this authority on Ian is a (n) __________________; and Ian is a (n)
_____________.
General power of attorney, Attorney in fact
Special power of attorney, Attorney at law
Special power of attorney, Attorney in fact
General power of attorney, Attorney at law Correct Ans-Special power of attorney--------------
------Attorney in fact
Implied authority is also known as ____________ authority. Correct Ans-Incidental
When ratifying a contract, a principal may select which provisions of the contract to accept and
which to reject Correct Ans-False
,Information about a consumer's bankruptcy may remain in the files of a credit reporting agency
for up to 15 years. Correct Ans-false
A bankruptcy trustee may do all of the following except
File tax returns for the state.
Recover property of the debtor that had been conveyed in a fraudulent transfer
Invest assets of the estate
Sell collateral without adequate protection for the secured creditor Correct Ans-Sell collateral
without adequate protection for the secured creditor
Once bankruptcy proceedings are commenced, creditors are prohibited from attempting to collect
their debts. Correct Ans-true
In a bankruptcy proceeding, the ________ is the individual, business organization, municipality
or farmer that the bankruptcy proceeding involves.
Debtor.
Creditor.
,Interested party.
Trustee. Correct Ans-debtor
Debt collectors may make harmless misleading statements, such as "I am a lawyer", but may not
threaten the debtor. Correct Ans-false
In a ______ credit transaction, the amount of the loan is set.
Revolving.
Open-end.
Closed-end.
Credit card. Correct Ans-closed-end
Under certain circumstances, a consumer may be incarcerated for nonpayment of a debt.
Correct Ans-false
Accurate information on labels and packaging is important because consumers rely on this
information when comparing products and making purchasing decisions. Correct Ans-true
, The Poison Product Packaging Act of 1970 requires that certain products have child proof caps
and packaging. Correct Ans-true
All businesses have a right to liquidation proceedings. Correct Ans-false
Creditors may petition the bankruptcy court to convert a Chapter _________bankruptcy in to a
Chapter __________bankruptcy.
7 into 13
11 into 7
11 into 13
13 into 11 Correct Ans-11 into 7
Under the Fair Debt Collection Practices Act, debt collectors are prohibited threatening to arrest
a debtor for failure to pay a debt. Correct Ans-true
The Fair Debt Collection Practices Act applies both to third party collectors (like collection
agencies) and to the original creditor. Correct Ans-false
Answers
Ruth had a contract to sell a vacation home she owned in North Carolina. Rather than make the
trip from Oregon for the closing, she gave her brother Ian, who lived in North Carolina, the
authority to represent her at the closing and to sign all the necessary papers. The notarized
document that confers this authority on Ian is a (n) __________________; and Ian is a (n)
_____________.
General power of attorney, Attorney in fact
Special power of attorney, Attorney at law
Special power of attorney, Attorney in fact
General power of attorney, Attorney at law Correct Ans-Special power of attorney--------------
------Attorney in fact
Implied authority is also known as ____________ authority. Correct Ans-Incidental
When ratifying a contract, a principal may select which provisions of the contract to accept and
which to reject Correct Ans-False
,Information about a consumer's bankruptcy may remain in the files of a credit reporting agency
for up to 15 years. Correct Ans-false
A bankruptcy trustee may do all of the following except
File tax returns for the state.
Recover property of the debtor that had been conveyed in a fraudulent transfer
Invest assets of the estate
Sell collateral without adequate protection for the secured creditor Correct Ans-Sell collateral
without adequate protection for the secured creditor
Once bankruptcy proceedings are commenced, creditors are prohibited from attempting to collect
their debts. Correct Ans-true
In a bankruptcy proceeding, the ________ is the individual, business organization, municipality
or farmer that the bankruptcy proceeding involves.
Debtor.
Creditor.
,Interested party.
Trustee. Correct Ans-debtor
Debt collectors may make harmless misleading statements, such as "I am a lawyer", but may not
threaten the debtor. Correct Ans-false
In a ______ credit transaction, the amount of the loan is set.
Revolving.
Open-end.
Closed-end.
Credit card. Correct Ans-closed-end
Under certain circumstances, a consumer may be incarcerated for nonpayment of a debt.
Correct Ans-false
Accurate information on labels and packaging is important because consumers rely on this
information when comparing products and making purchasing decisions. Correct Ans-true
, The Poison Product Packaging Act of 1970 requires that certain products have child proof caps
and packaging. Correct Ans-true
All businesses have a right to liquidation proceedings. Correct Ans-false
Creditors may petition the bankruptcy court to convert a Chapter _________bankruptcy in to a
Chapter __________bankruptcy.
7 into 13
11 into 7
11 into 13
13 into 11 Correct Ans-11 into 7
Under the Fair Debt Collection Practices Act, debt collectors are prohibited threatening to arrest
a debtor for failure to pay a debt. Correct Ans-true
The Fair Debt Collection Practices Act applies both to third party collectors (like collection
agencies) and to the original creditor. Correct Ans-false
