Appendix F for Unit Six
Questions on the Features
N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows.
N A question new to this edition of the Test Bank.
+ A question modified from the previous edition of the Test Bank.
= A question included in the previous edition of the Test Bank.
CHAPTER 27—INSIGHT INTO ETHICS:
THE DEBT THAT NEVER GOES AWAY
B1. Orly’s debts are discharged in a liquidation bankruptcy. Pester & Recover, Inc., buys
the discharged debt obligations. With respect to these debts, Pester
a. can do nothing.
b. can pressure Orly into paying them.
c. must give Orly additional help to rebuild her life after the discharge.
d. must report the debts to credit reporting agencies as “discharged.”
396 TEST BANK 2—UNIT SIX: CREDITORS’ RIGHTS AND BANKRUPTCY
UNIT SIX—FOCUS ON ETHICS:
CREDITOR’S RIGHTS AND BANKRUPTCY
B2. Auto & Truck Loan Corporation uses “self–help” repossession when its debtors default
on their loans. This simplifies the process of repossession because
a. it can be done without judicial process.
b. it is less stressful for debtors.
c. it provides an incentive for confrontations with debtors.
d. the UCC clearly defines what constitutes “breach of the peace.”
B3. Farmers National Bank lends money to Greta, taking a security interest in her assets.
Later, Greta files a bankruptcy petition. From Farmers’s point of view, once Greta is in
bankruptcy, her assets have
a. decreased value, or no value.
b. increased value.
c. the same value.
d. unique value.