The Legal Environment Today Business 7th Edition By Roger Miller – Test Bank

TRUE/FALSE QUESTIONS

1. The holder of an artisan’s lien can foreclose and sell the property subject to the lien to sat¬isfy the debt.

ANSWER: T PAGE: 348 TYPE: N
NAT: AACSB Reflective AICPA Legal

2. A writ of execution is a court order to execute a debtor after the entry of a final judgment in a creditor’s lawsuit against the debtor.

ANSWER: T PAGE: 349 TYPE: N
NAT: AACSB Analytic AICPA Legal

3. Under federal law, an employer can dismiss an employee because his or her wages are being garnished.

ANSWER: F PAGE: 350 TYPE: N
NAT: AACSB Analytic AICPA Legal

4. Federal law governs garnishment actions.

ANSWER: F PAGE: 350 TYPE: N
NAT: AACSB Analytic AICPA Legal

5. A creditor’s composition agreement is usually held to be unenforceable.

ANSWER: F PAGE: 351 TYPE: N
NAT: AACSB Analytic AICPA Legal

6. A surety is secondarily liable for the debt of a principal.

ANSWER: F PAGE: 351 TYPE: N
NAT: AACSB Analytic AICPA Legal

7. Creditors may contract with a debtor for discharge of the debtor’s liqui-dated debts.

ANSWER: T PAGE: 351 TYPE: N
NAT: AACSB Analytic AICPA Legal

8. A guarantor can be required to pay an obligation only after the principal debtor defaults.

ANSWER: T PAGE: 352 TYPE: N
NAT: AACSB Analytic AICPA Legal

9. Payment of the principal obligation will not discharge the surety from the obligation.

ANSWER: F PAGE: 352 TYPE: N
NAT: AACSB Analytic AICPA Legal

10. Making any material modification in the terms of a debtor’s contract, without the consent of the surety, will not discharge the surety’s obligation.

ANSWER: F PAGE: 352 TYPE: N
NAT: AACSB Analytic AICPA Legal

11. Subrogation refers to the right of a co-surety to recover from the other co-sureties the amount paid above his or her proportionate share of a debt.

ANSWER: F PAGE: 353 TYPE: N
NAT: AACSB Reflective AICPA Legal