Question:
1. Why was the body of law specifically governing insolvency created?
a.
to assist businesses in coping with specific debt or general obligations
b.
to address the respective interests of creditors
c.
to force creditors to make concessions on repayment terms
d.
to ensure insolvent parties and their creditors are treated fairly
Answer
d.
to ensure insolvent parties and their creditors are treated fairly
Explanation
When a company or individual becomes insolvent, there are several courses of action that can be taken, which at times return the solvency. The body of law governing insolvency was created to ensure that both creditor and the insolvent partner are treated fairly and equally. For instance, Insolvency Act allows the debtor to enter into an agreement with the creditors as an alternative to bankruptcy. The three types of debtor protection that exist are credit contracts, insolvency procedures and debtor control.
Question:
1. Which of the following would strongly influence a seller's ability to exercise its right to stoppage in transit with respect to the sale of goods?
a.
the goods have not been delivered to the carrier
b.
the goods remain undelivered, and the buyer has become insolvent
c.
the buyer of the goods has become insolvent
d.
the seller is unable to arrange for insurance for the goods
Answer
b.
the goods remain undelivered, and the buyer has become insolvent
Explanation
The exercise of the right to stoppage in transit does not in itself terminate the contract of sale, but it prevents the buyer from possessing the goods. This happens when the buyer of the goods becomes insolvent, or the seller is unpaid and has already released the goods. This means the seller may retain the possession of the goods while in transit until they are paid. If the goods are not delivered, and the buyer has become insolvent, this would put the seller at a strongly better position to exercise the right to stoppage.
Question:
A type of Discovery where one party answers verbally and under oath is a ________.
Answer
Deposition
Explanation
Discovery is defined as the process by which one party gains information that is held by another party (Franklin, 1993). There are five basic tools allowed in discovery: Interrogatories, requests for production, requests for admission, examination of physical evidence and lastly, depositions. Deposition is a out-of-court testimony that is given under oath and transcribed.
Reference
Civil Liability in Criminal Justice
By Darrell L. Ross Page 84
