Business Law - Chapter 11 Review

When you choose a credit card, you should be more concerned about which of the following?

• what the interest rate is

• the credit card features

• what the credit limit is

• who the credit card issuer is

When a car is purchased that has continuous, major mechanical problems, it may be considered a/an:

• orange

• grape

• lemon

• watermelon

To build credit, a person should do all of the following except:

• stay within credit limits and income

• start with small purchases

• set priorities

• accept every credit card offer given

Joe buys a new car and Sam agrees to serve as guarantor of the loan. Which of the following is a true statement?

• If Joe defaults, the creditor can collect immediately from Sam.

• If Joe defaults, the creditor would have to try to collect from Joe first before trying to collect from Sam.

• If Joe defaults, the creditor may choose either Joe or Sam to pay what is owed.

• All of these statements are false.

If your credit card is lost or stolen and you notify the credit card company of the loss/theft, you are only responsible for:

• $500 of unauthorized charges

• $250 of unauthorized charges

• $100 of unauthorized charges

• $50 of unauthorized charges

If you join the Peace Corp,

• the government will provide you with a free college education

• your qualifying student loans may be discharged by the government

• the government will pay the interest on your loans

• your student loans will be deferred for up to 25 years

If you receive a government subsidized student loan,

• the government pays the interest while you are still in school

• the government pays the interest once you graduate

• you will pay the interest while you are still in school

• there will be no interest charges while you are in school

An attachement of security interest occurs when

• timely payments on the loan are not made

• the secured property is sold

• the party refuses to sign the security agreement

• the debtor owns the collateral

When the net proceeds from repossessed, resold goods does not cover the balance due, the creditor

• assumes the difference as a loss

• may sue the original debtor for the remaining amount owed

• may claim another possession of the debtor to sell

• may turn the balance over to the state for tax reduction

When the net proceeds from repossessed, resold goods are more than the balance due, the excess is

• considered profit to the creditor

• considered taxes for the state

• returned to the original debtor

• divided between the creditor and the debtor