Q&A Hero

Q: Gail is a "payday" lender charged with filing false claims in bankruptcy proceedings against her debtors. The standard of proof to find a defendant who has been charged with a crime guilty is a. a preponderance of the evidence. b. beyond all doubt. c. beyond a reasonable doubt. d. clear and convincing evidence.

Q: Which of the following is true of Chapter 7 liquidation? A) The debtor is not permitted to keep any of his or her assets. B) The 2005 bankruptcy act has eased the process of applying for Chapter 7 bankruptcy. C) The debtor's future income cannot be reached to pay the discharged debt. D) Petitioning for Chapter 7 liquidation does not permit the debtor to petition for bankruptcy under any other chapter.

Q: Computer fraud is a state, not a federal, crime.

Q: ________ is a form of bankruptcy in which the debtor's nonexempt property is sold for cash, the cash is distributed to the creditors, and any unpaid debts are discharged. A) An abusive filing B) Dissolution of debt C) Liquidation D) Reorganization

Q: Jurisdiction can be a key issue in a case involving a cyber crime.

Q: What is a homestead exemption? A) an investment in realty that a debtor must forfeit B) equity in a home that a debtor is permitted to retain C) a remainder of the debtor's interest in commercial property that is returned to him after fulfilling creditors' claims D) all of the debtor's assets converted to cash

Q: Hackers sometimes rent their "crimeware" as a service.

Q: The suspension of certain legal actions by creditors against a debtor or the debtor's property is known as a(n) ________. A) discharge of debt B) composition C) automatic stay D) order for relief

Q: A business takes a risk by electronically storing its customers' credit account numbers.

Q: A hacker is someone who uses one computer to break into another.

Q: A(n) ________ is a document required to be filed by an equity security holder that states the nature and amount of his or her interest against the debtor. A) proof of claim B) proof of interest C) voluntary petition D) involuntary petition

Q: Chapter 7 of the Bankruptcy Code primarily deals with ________. A) debt reorganization B) adjustment of debts of a family farmer or fisherman with regular income C) adjustment of debts of an individual with regular income D) liquidation

Q: A stolen credit card is more likely to hurt a consumer than a merchant.

Q: In a(n) ________ arrangement, a third party promises to be secondarily liable for the payment of another's debt.

Q: Vishing is phishing that involves voice communication.

Q: In a(n) ________ arrangement, a third party promises to be primarily liable with the borrower for the payment of the borrower's debt.

Q: Phishing occurs when a criminal poses as a member of the rock group Phish.

Q: In a guaranty agreement, the guarantor is primarily liable on the debt.

Q: Identity theft occurs when a wrongdoer steals another's form of identification.

Q: In cyberspace, thieves are as subject to physical limits as they are in the "real" world.

Q: The surety is primarily liable for paying the principal debtor's debt when it is due in a surety arrangement.

Q: Which of the following is true of a guarantor in a guaranty arrangement? A) The guarantor is secondarily liable on the debt. B) The guarantor must pay the debt even if the principal debtor is not in default. C) The creditor can first seek legal remedy from the guarantor. D) The guarantor has full legal rights to possession of the real property in this type of arrangement.

Q: Any crime committed with a computer is a cyber crime.

Q: Which of the following is true about the surety's liability to pay in a surety arrangement? A) The surety is secondarily liable for payment. B) The surety is primarily liable for payment. C) The principal debtor must be in default before the surety can be approached. D) The creditor can only approach the surety as a last resort.

Q: Any crime that requires knowledge of computer technology for its perpetration is a computer crime.

Q: If a third party promises to be primarily liable for the payment of the borrower's debt, this is referred to as ________. A) garnishment B) subrogation C) a surety arrangement D) a guaranty arrangement

Q: Under the exclusionary rule, all evidence must be included in a criminal prosecution.

Q: Outline the priority of claims in secured and unsecured transactions.

Q: Distinguish between two-party and three-party secured transactions with examples.

Q: The purpose of the exclusionary rule is to encourage criminals to provide exclusive evidence of their crimes.

Q: A suspect cannot be tried twice in the same court for the same crime.

Q: ________ refers to an interest a creditor automatically obtains when he or she extends credit to a consumer to purchase consumer goods.

Q: There is at least one circumstance in which a person cannot refuse to testify.

Q: The term ________ refers to a security interest in property that was not in the possession of the debtor when the security agreement was executed.

Q: A(n) ________ transaction occurs when a seller sells goods to a buyer who has obtained financing from a third-party lender that takes a security interest in the goods sold.

Q: Most crimes must be prosecuted within a certain number of years.

Q: Ordinarily, "ignorance of the law is an excuse," or a valid defense to criminal liability.

Q: A purchase money security interest is an interest a creditor automatically obtains when he or she extends credit to a consumer to purchase consumer goods.

Q: Perfection by investment of collateral is one of the methods of perfecting a security interest under the Uniform Commercial Code (UCC).

Q: A defendant may be relieved of liability by showing that a criminal act was necessary to prevent an even greater harm.

Q: The only defense to criminal liability that justifies the use of force is self-defense.

Q: Perfection of a security interest establishes the right of a secured creditor against other creditors who claim an interest in the collateral.

Q: The crime of bribery occurs when the bribe is offered even if it is not accepted.

Q: A floating lien is a security interest in property that was not in the possession of the debtor when the security agreement was executed.

Q: A person's intent to return embezzled property is a defense to the crime of embezzlement.

Q: A situation in which the value of the creditor's collateral is insufficient to satisfy the debt is called attachment.

Q: Changing a trademark is forgery.

Q: To be valid, a security agreement must set forth the creditor's rights upon the debtor's default.

Q: It may be a crime to take another's property, but it is not a crime to receive stolen goods.

Q: Article 9 of the Uniform Commercial Code (UCC) governs secured transactions in personal property.

Q: If a worker in the ordinary course of business furnishes services or materials to someone with respect to goods and receives a lien on the goods by statute, this is known as a(n) ________ lien. A) subordinate B) floating C) artisan's D) judgment

Q: Stealing software is not a crime.

Q: A person who commits larceny can be sued under tort law.

Q: Which of the following has the highest priority claim? A) the first party to secure the interest B) the first party to attach the interest C) the first party to possess the interest D) the first party to file a financing statement

Q: A ________ is an interest a creditor automatically obtains when he or she extends credit to a consumer to purchase consumer goods. A) purchase money security interest B) cumulative security interest C) future advance monetary interest D) default interest

Q: A wrongful mental state is typically required for criminal liability.

Q: A ________ refers to a document filed by a secured creditor with the appropriate government office that constructively notifies the world of his or her security interest in personal property. A) security disclosure B) financing statement C) possession statement D) custodial statement

Q: The crime of theft does not require that the perpetrator know whatever is taken belonged to another.

Q: ________ is a process that establishes the right of a secured creditor against other creditors who claim an interest in the collateral. A) Disposition of collateral B) Retention of collateral C) Perfection of a security interest D) Repossession of a security interest

Q: Most criminal liability depends on the performance of a prohibited act.

Q: A misdemeanor is a crime punishable only by a fine.

Q: A(n) ________ refers to a security interest in property that was not in the possession of the debtor when the security agreement was executed. A) floating lien B) after-acquired property C) attachment D) future advance

Q: College Copy Shop (CCS) compiles, copies, and sells reading materials to students on the instructions of their professors, who indicate which parts of which publications should be included. These include texts published by Deep Topics, Inc. CCS does not obtain the permission of Deep Topics, or any of the other original publishers of the copied materials, and does not pay royalties on the sales of the compilations. Deep Topics and others file a suit against CCS, alleging infringement of the plaintiffs' intellectual property rights. Which type of intellectual property is involved in this situation? What is CCS's likely defense? How is a court most likely to rule? Explain.

Q: Which of the following transactions occurs when a seller sells goods to a buyer on credit and retains a security interest in the goods? A) two-party secured B) three-party secured C) perfected D) attached

Q: Max plots a new Batman adventure and carefully and skillfully imitates the art of DC Comics to create an authentic-looking Batman comic. Max is not affiliated with the owners of the copyright to Batman. Can Max pub­lish the comic without infringing on the owners' copyright?

Q: When a creditor extends credit to a debtor and takes a security interest in some personal property of the debtor, it is called a ________. A) super-priority lien B) collateral claim C) collateral disposition D) secured transaction

Q: Which article of the Uniform Commercial Code (UCC) governs secured transactions in personal property? A) Article 8 B) Article 9 C) Article 18 D) Article 19

Q: Hawk Corporation begins making and selling motorcycles in 1995 under the mark "Hawk." Ten years later, Hawk.com, Inc., a differ­ent company selling medical equipment and supplies, begins to use "hawk" as part of its URL and registers it as a domain name. Can Hawk Corporation stop Hawk.com's use of "hawk"? If so, what must the motorcycle-maker show?

Q: ________ is a situation in which a creditor agrees to extend credit only if the purchaser pledges some personal property as collateral for the loan. A) A floating lien B) Attachment C) A mortgage D) Secured credit

Q: For five years, baby-food makers Baby-One Corporation and Baby-B-Mine, Inc., both use the phrase "Tastes Good" on their labels. Baby-One files a suit against Baby-B-Mine, claiming trademark infringement. Baby-B-Mine argues that the phrase is not generally associated with any particu­lar firm, pointing to other companies that use the same phrase on their labels. In whose favor is the court most likely to rule, and why?

Q: 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 is known as a ________. A) material lien B) judgment lien C) tax lien D) construction lien

Q: Symphony, Inc., a U.S. jewelry designer and maker, files a suit against Kawa, Ltd., a Japanese jewelry maker, for the infringement of intellectual property rights under Japan's national laws. Under the TRIPS agreement, Symphony is entitled to receive a. better treatment than Kawa. b. the same treatment as Kawa. c. worse treatment than Kawa. d. nothing.

Q: To which of the following type of mortgages does the antideficiency statute apply? A) foreign currency mortgages B) home improvement mortgages C) first purchase money mortgages D) second purchase money mortgages

Q: Canada and the United States are signatories of the Berne Convention. Doug, a citizen of Canada, publishes a book first in Canada and then in the United States. Doug's copyright must be recognized by a. Canada only. b. Canada and the United States only. c. all of the signatories of the Berne Convention. d. none of the choices.

Q: A ________ statute requires a mortgage or deed of trust to be recorded in the county recorder's office of the county in which the real property is located. A) recording B) real property C) mortgage D) compilation

Q: Like most successful companies, Paychex, Inc., has trade secrets. The law protects those secrets if a. Paychex employees do not divulge the information to outside parties. b. Paychex employees do not handle confidential documents. c. Paychex employees never leave the company's employ. d. the information is unique and has value to a competitor.

Q: A(n) ________ is an instrument that evidences a borrower's debt to the lender for a real property. A) note B) consignment C) accommodation D) deed of trust

Q: Diamond Financial Planners employs Elle, Diamond's most productive per­former. Elle, however, dissatisfied with the commission structure, quits to work for Feldstar Investments, Inc. Elle takes her list of Diamond clients to induce them to switch to Feldstar. Laws related to trade secrets cover a. Diamond's list of clients. b. Elle's performance methods. c. Feldstar's commission structure. d. none of the choices.

Q: A ________ is an instrument that gives a creditor a security interest in the debtor's real property that is pledged as collateral for a loan. A) credit report B) letter of credit C) note D) deed of trust

Q: Ross e-mails Super Surfboard Company's marketing campaign to Summer Sports Corporation, Super's competitor, without its permission. This is a. a sneaky but legal method to shock a business rival. b. a secretive but lawful way to exact revenge on a supervisor. c. a simple, legitimate attempt to create a job opportunity. d. a theft of trade secrets.