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PRE-ASSESSMENT: BUSINESS LAW FOR ACCOUNTANTS (WHC1)
PWHC
Attempt #1
Status: Passed
1.
What is the purpose of informal agency actions?
YOUR
ANSWER
CORRECT
ANSWER
To provide an informal means to resolve a dispute
To rectify a dispute to the agency’s satisfaction
To allow an agency to take an administrative act against an individual or
organization
To provide advance notice that formal rulemaking may be forthcoming
2.
Which action has the government implemented in order to minimize health care costs?
YOUR
ANSWER
CORRECT
ANSWER
Insurance companies cannot increase rates for two years and must apply for an
increase after two years.
Insurance companies must spend at least 80% of individual premiums on benefits
or pay a rebate to the insured.
Insurance companies are required to participate in the National Health
Exchange.
Insurance companies must spend at least 80% of individual premiums on benefits
or are required to decrease rates.
3.
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Which act did Congress pass in 2011 to give the Food and Drug Administration (FDA) greater authority to
recall any food products suspected to be tainted?
YOUR
ANSWER
CORRECT
ANSWER
Federal Food, Drug, and Cosmetic Act
Federal Drug Administration Act
Food Safety Modernization Act
Consumer Food Safety Act
4.
A specialized debt-collection agency contacted a consumer at his home at four o’clock in the morning to
collect a past due medical bill owed by the consumer’s mother. During the call, the collection agency
harassed and threatened the consumer if payment of the debt was not forthcoming.
Which federal statute prohibits this type of collection tactic?
YOUR
ANSWER
CORRECT
ANSWER
The Truth-in-Lending Act
The Fair Credit Reporting Act
The Equal Credit Opportunity Act
The Fair Debt Collection Practices Act
5.
What is the purpose of the Comprehensive Environmental Response, Compensation, and Liability Act?
YOUR
ANSWER
CORRECT
ANSWER
To compensate individuals impacted by leaking hazardous waste
To prohibit the dumping and disposal of hazardous waste
To regulate the cleanup of hazardous waste disposal sites
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YOUR
ANSWER
CORRECT
ANSWER
YOUR
ANSWER
CORRECT
ANSWER
YOUR
ANSWER
CORRECT
ANSWER
To determine which forms of solid waste are considered hazardous
6.
Which act regulates the cleanup of hazardous waste disposal sites?
Toxic Substances Control Act
Resource Conservation and Recovery Act
Federal Insecticide, Fungicide, and Rodenticide Act
Comprehensive Environmental Response, Compensation and Liability Act
7.
What is the purpose of Section 2 of the Clayton Act?
To prohibit price discrimination agreements
To prohibit exclusive dealing contracts
To prohibit tying agreements
To prohibit price fixing contracts
8.
A certified public accountant (CPA) is engaged to perform an audit for a company. During the course of the
audit, the CPA accepts explanations from management of financial data irregularities that seem to
indicate fraud. The CPA issues a clean opinion on the company’s financial statements. Investors extend
additional funding to the company based on the financial statements issued by the CPA. A short time later,
the company declares bankruptcy and closes. The investors suffer losses and file a motion to sue the CPA
for gross negligence due to fraud.
Which type of fraud did this CPA engage in?
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YOUR
ANSWER
CORRECT
ANSWER
Actual fraud
Constructive fraud
Material fraud
Professional fraud
9.
How does the Private Securities Litigation Reform Act of 1995 impact the liability of accountants?
YOUR
ANSWER
CORRECT
ANSWER
By increasing the penalty for an accountant who is found guilty of violating
security laws
By limiting an accountant’s liability to a proportionate share of the damage
resulting from a wrongful act
By increasing an accountant’s potential liability by making the release of false
and misleading reports a felony offense
By ruling that an accountant is not liable for errors and omissions if the
accountant acted in good faith
10.
Which worker is eligible for unemployment compensation under the Federal Unemployment Tax Act?
YOUR
ANSWER
CORRECT
ANSWER
An independent contractor who is terminated from a long-term project by a
company
A staff member who is involuntary terminated and actively seeking employment
A manager who resigns from a company because of a change in company vision
An executive who is fired for workplace misconduct
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11.
Which employer requirement is included in Davis-Bacon Act?
YOUR
ANSWER
CORRECT
ANSWER
Posting notices in the workplace that address the death of three or more
employees from work-related injury
Posting criteria for lost wages due to absences from work
Paying prevailing rates to all employees paid with federal funds
Ceasing to mandate federal contractor employees to waive their right to join a
union
12.
Which act ensures employees have the right to a duly designated representative who bargains collectively
on their behalf?
YOUR
ANSWER
CORRECT
ANSWER
Norris-LaGuardia Act
Labor-Management Relations Act
National Labor Relations Act
Labor-Management Reporting and Disclosure Act
13.
Which remedy is available to an employee who is discriminated against because of a disability, according
to the Americans with Disabilities Act?
YOUR
ANSWER
CORRECT
ANSWER
A state employee may sue the state employer in federal court instead of state
court.
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YOUR
ANSWER
CORRECT
ANSWER
Congressional abrogation through legislation may allow a private suit in state
court.
The Equal Employment Opportunity Commission (EEOC) can sue on behalf of an
employee.
Corrective action such as mediation can reverse the act of discrimination.
14.
Which federal provision requires the plaintiff to show that unlawful bias is the primary reason for an
adverse employment action?
YOUR
ANSWER
CORRECT
ANSWER
Title VII of the Civil Rights Act of 1964
The Age Discrimination Employment Act
The Civil Rights Act of 1866
The Equal Pay Act of 1963
15.
Candidate A is a 35-year-old man with 10 years of work experience. Candidate B is a 50-year-old woman
with 25 years of work experience. Both candidates interview for a job at the county prison working with
male prisoners. Candidate A is hired over Candidate B. Candidate B sues for discrimination. The court
finds for the prison, and the case is dismissed.
Which type of discrimination defense did the prison successfully employ?
YOUR
ANSWER
CORRECT
ANSWER
Business necessity
Bona fide occupational qualification
Justifiable selection
Seniority systems
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YOUR
ANSWER
CORRECT
ANSWER
YOUR
ANSWER
CORRECT
ANSWER
YOUR
ANSWER
CORRECT
ANSWER
After-acquired evidence of seniority
16.
Who owns the copyright for work that is completed for an employer?
Employees own the copyright for work that they complete for their employer.
The employee and employer share ownership rights.
The employer owns the copyright for work that independent contractors
complete for the employer.
Independent contractors own the copyright for work that they complete for an
employer unless otherwise stated in a work for hire agreement.
17.
Which act by a party terminates an agency relationship?
Lapse of time
Death or insanity
Bankruptcy
Changed circumstances
18.
Which type of agency relationship is formed by express consent or implied by conduct.
YOUR
ANSWER
CORRECT
ANSWER
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YOUR
ANSWER
CORRECT
ANSWER
YOUR
ANSWER
CORRECT
ANSWER
Agency by agreement
Agency by ratification
Agency by estoppel
Agency by operation of law
19.
What is one duty of an agent to the principal in an agency relationship?
The agent must employ usual and customary efforts and skill in completing the
agreed-upon assignment.
The agent must notify the principal of information it deems important to the
subject matter of the agency.
The agent must not represent another party in addition to the initial principal.
The agent must provide information obtained during the agency relationship to a
third party.
20.
What is one remedy for a principal against an agent who has breached fiduciary duties?
YOUR
ANSWER
CORRECT
ANSWER
Choosing to pursue either a contract remedy or a tort remedy, but not both
Recovering any benefits or profits that were obtained by virtue of the agency
relationship
Choosing the right of avoidance, thereby requiring the agent to fulfill all
contracts
Recovering damages from the agent for negligent conduct, if a third party wins a
suit against the agent
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21.
How does an agent exercise implied authority?
YOUR
ANSWER
CORRECT
ANSWER
YOUR
ANSWER
CORRECT
ANSWER
By acting under the framework of clear, direct, and definite terms agreed upon by
the principal
By acting when the principal causes a third party to believe that the agent has the
authority to act
By acting in a manner indirectly understood by custom or inferred from the
position the agent occupies
By acting when an unforeseen emergency demands action to protect the
property and rights of the principal, and the agent is unable to communicate with
the principal
22.
How does an agent exercise apparent authority?
By acting under the framework of clear, direct, and definite terms agreed upon by
the principal
By acting when the principal causes a third party to believe that the agent has the
authority to act
By acting in a manner indirectly understood by custom or inferred from the
position the agent occupies
By acting when an unforeseen emergency demands action to protect the
property and rights of the principal, and the agent is unable to communicate with
the principal
23.
A cable repairman, who is employed by a cable company, travels to various service locations as part of his
job. One afternoon, while driving to a service call, he negligently runs a stop sign and causes an accident. A
woman is injured in the car accident.
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Who is liable to the woman for her injuries?
YOUR
ANSWER
CORRECT
ANSWER
The repairman and the cable company are liable to the woman because the
repairman caused the accident.
The repairman’s manager is liable to the woman because the manager is
responsible for the acts of the employees.
The repairman is liable because he caused the accident due to his negligence.
The cable company is liable because the repairman was acting within the scope of
his duties.
24.
Mr. A and Mr. B are partners in a CPA firm. Both partners manage client bank accounts. Mr. A embezzles
from a client account.
Can Mr. B’s personal assets be attached to pay off any financial liabilities resulting from the
embezzlement?
YOUR
ANSWER
CORRECT
ANSWER
No. Mr. A is an owner of the company, and there is no principal and agent
relationship.
Yes. Mr. A is acting as an agent of the company; as partners, Mr. A and Mr. B share
financial liabilities.
No. Mr. A is the principal and is wholly responsible for the financial liabilities as
the principal.
Yes. Mr. A is an agent for Mr. B; the principal will share responsibility for the
financial liabilities.
25.
How does the Uniform Commercial Code (UCC) provide a single integrative framework for commercial
transactions?
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YOUR
ANSWER
CORRECT
ANSWER
By covering real estate leases
By covering sales of goods by merchants
By covering real estate sales as tangible property
By covering the sale of intangible goods such as stocks and bonds
26.
What is one requirement of a firm offer for the formation of a sales and lease contract?
YOUR
ANSWER
CORRECT
ANSWER
It must be signed by the offeree.
It must be signed by the offeror.
It must have consideration to keep the offer open.
It must be open for a definite period of time.
27.
Company X submits a sales and lease contract to Company Y. Company Y modifies the agreement and
sends it back to Company X.
Why is the contract still enforceable under the Uniform Commercial Code (UCC) rules?
YOUR
ANSWER
CORRECT
ANSWER
The modification includes a required consideration.
The modification allows for the acceptance to be upheld.
The modification constructs a counter offer to be negotiated.
The modification creates a new contract that must be accepted by both parties.
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28.
Company A, located in the United States, submits an offer to Company B. Company B is located in Spain.
Company B makes a change to the payment terms, signs, and returns the contract to Company A.
Has there been an enforceable contract formed under the Contracts for the International Sale of Goods
(CISG)?
YOUR
ANSWER
CORRECT
ANSWER
The contract is enforceable because the CISG considers a contract valid if the
change does not materially alter it.
The contract is enforceable because an offer, acceptance, and consideration are
present within the contract.
The contract is unenforceable because the CISG considers an alteration of
payment terms to be a material change.
The contract is unenforceable because there is an offer but no consideration
present within the contract.
29.
An American music performance group offered entertainment services at a contracted price to a charity
group, a British corporation, for a fundraising event. The offer was made and imposed a ten-day
acceptance window. The charity group immediately accepted the offer and transmitted its acceptance via
an overnight courier service. Three weeks later, the music group had not yet received a reply to its offer
and accepted another engagement. The overnight courier service then delivered the charity group
acceptance to the music group. Noting the conflict, the music group informed the charity group that it had
accepted another engagement. The charity group protested and expressed that there was a contract that
should be honored.
How would the Contracts for the International Sale of Goods (CISG) rule on this scenario?
YOUR
ANSWER
CORRECT
ANSWER
This is a service, so the CISG would not apply.
This is a service, so it is an enforceable contract.
This is a good, but there is no enforceable contract because there is no valid
acceptance.
This is a good, and the charity group is entitled to liquidating damages.
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30.
A local heating oil distributor purchases a 25% interest in a container of oil.
When does risk of ownership take place?
YOUR
ANSWER
CORRECT
ANSWER
When the oil seller/owner separates the individual purchases
When the oil ships to the local heating oil distributor
When the oil is received by the local heating oil distributor
When the oil seller/owner passes title to the local heating oil distributor
31.
Business A signs a lease agreement with Business B to lease a labeling machine. The lease agreement
includes a destination contract. Business A is located in New Hampshire. The labeling machine is shipped
free on board (FOB) to New Hampshire and is damaged in transit.
Which business assumes the risk for the damage to the labeling machine?
YOUR
ANSWER
CORRECT
ANSWER
Business A assumes the risk, because the risk of loss passes to the lessee in a
destination contract.
Business B assumes the risk, because the owner of the asset as outlined in the
destination contract.
Business B assumes the risk, because the risk of loss transfers to Business A
when goods are delivered.
Business A and Business B share the loss equally as a result of the absence of a
loss clause.
32.
When a sale is made on credit, when does the credit period begin, according to the Uniform Commercial
Code (UCC)?
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YOUR
ANSWER
CORRECT
ANSWER
On the date of shipment
On the date the contract was signed
On the date the shipment is received
On the date of final inspection and sign-off
33.
What are two requirements of the buyer under the Uniform Commercial Code (UCC) when there are
products that are sight unseen?
Choose 2 answers
YOUR
ANSWER
CORRECT
ANSWER
Acceptance upon delivery of conforming goods with a change in payment terms if
deemed necessary
Payment for conforming collect on delivery (COD) goods without access for
inspection
Payment for goods for which reasonable opportunity for inspection expired
Acceptance of part of a shipment where goods are defective and cannot be
replaced prior to expiration of contract terms
34.
Seller A signs a contract with Buyer B. The contract states that Seller A will ship one truckload of wood
every month for twelve consecutive months. Seller A ships the first shipment in January and the second
shipment in February. Seller A realizes that Buyer B has not made payment for the first shipment as
outlined in the contract. The non-payment is a breach of contract.
Which legal remedy is available to Seller A for this breached contract?
YOUR
ANSWER
CORRECT
ANSWER
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YOUR
ANSWER
CORRECT
ANSWER
The right to stop the shipment in transit, return it to Seller A’s facility, and
discontinue any further deliveries
The duty to give Buyer B reasonable notice to cure and then cancel the contract if
the buyer is still in breach of contract
The right to cancel the contract without any further notification as a result of the
breach of contract
The duty to complete the shipment in transit and then discontinue shipments
until Buyer B makes a payment
35.
How does the United Nation’s Convention on Contracts for the International Sale of Goods (CISG) provide
legal remedies when there is a breach of international sales contracts?
YOUR
ANSWER
CORRECT
ANSWER
YOUR
ANSWER
CORRECT
ANSWER
It provides for monetary damages to those who suffered up to the date of the
breach.
It provides the seller a release from contract obligations when the buyer
breaches the contract.
It provides the seller the remedy of withholding payment through letter of credit
if the shipment has been made.
It provides that one party may not require performance of any obligation by the
other party of a breached contract.
36.
What is one characteristic of an express warranty?
A statement from the seller that a good will be delivered quickly
An affirmation of fact from the seller of the quality and feature of a good
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YOUR
ANSWER
CORRECT
ANSWER
YOUR
ANSWER
CORRECT
ANSWER
YOUR
ANSWER
CORRECT
ANSWER
A statement from the seller about the value or worth of a good
A recommendation of the seller for the buyer’s specific use
37.
When does an implied warranty of fitness arise in connection with the sale of a good?
When the merchant has the right to pass the good and rightful title to the good
When the good is properly packaged, labeled, and is of a proper quality
When the good has a particular purpose, and the buyer relies on the merchant’s
judgment to select the good
When the merchant affirms that the good conforms to a description of the good
based upon a sample shown
38.
What are two examples of order to pay negotiable instruments?
Choose 2 answers
Checks
Promissory notes
Certificate of deposits
Drafts
39.
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Mr. A borrowed $1,000 from Mrs. X. He constructed a note promising to pay back the loan. Mr. A wrote “I,
Mr. A, will pay Mrs. X the money that I borrowed as soon as I am able.” The note was signed “Mr. A.”
Which two requirements need to be added to make this note a negotiable instrument?
Choose 2 answers
YOUR
ANSWER
CORRECT
ANSWER
It must be signed by the maker.
It must be an unconditional order to pay.
It must be nontransferable.
It must be a stated, fixed amount.
40.
Jane A. writes an order to pay Martha B. The order to pay states: “I, Jane A., owe Martha B. $1,000. I will
pay Martha B. the full amount when I receive payment from Acme Manufacturing for invoice number
1234.” Jane A. signs with her initials but does not date the document. The document is scanned and
emailed to Martha B.
Which element is needed to make this a valid negotiable instrument?
YOUR
ANSWER
CORRECT
ANSWER
YOUR
ANSWER
CORRECT
ANSWER
The instrument must include the maker’s full signature.
The instrument must include the date that the document is signed.
The instrument must be an original document.
The instrument must be an unconditional promise or order to pay.
41.
What is the legal effect of a special indorsement?
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YOUR
ANSWER
CORRECT
ANSWER
It relieves the indorser of any liability for paying for the instrument.
It identifies the person to whom the instrument is payable.
It transfers legal possession to the bank.
It creates a bearer instrument that can be negotiated by delivery alone.
42.
Mr. A pays a debt to Mr. B with a one hundred dollar bill. The police later inform Mr. B that Mr. A. had
stolen the money.
Is Mr. B a holder in due course?
YOUR
ANSWER
CORRECT
ANSWER
No; Mr. A did not have clear rights to the property before he paid Mr. B.
Yes; Mr. B acted in good faith, which impacts holder in due course status.
No; Mr. A knew the money was stolen and did not act in good faith.
Yes; the stolen property does not impact Mr. B’s holder in due course status.
43.
Mr. X loans his girlfriend, Miss A, money. Miss A signs a note payable to Mr. X for the debt. Mr. X receives a
check in full payment for the debt from Miss A. Mr. X rips up the check and the note and tells her she does
not need to pay him back. One week later, Miss A breaks up with Mr. X. He then asks her for a replacement
check for payment on the debt.
Is Miss A liable for the debt?
YOUR
ANSWER
CORRECT
ANSWER
Miss A is liable for the debt because the payment has not been tendered, and Mr.
X has the right to enforce the debt.
Miss A is no longer liable for the debt because Mr. X intentionally cancelled the
debt by destroying the check and note.
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YOUR
ANSWER
CORRECT
ANSWER
Miss A is no longer liable for the debt because Mr. X verbally stated that Miss A
did not need to pay him.
Miss A is liable for the debt because destroying the negotiable instrument does
not cancel the debt.
44.
Mr. B was charged with caring for an elderly aunt who had been declared by a court to be mentally
incompetent. The aunt disagreed with the court’s decision and insisted that she could manage her own
affairs. One day while the aunt was home alone, a salesman came by selling security systems, and the aunt
decided to purchase a system. She gave the salesman a check for $3,000 to cover equipment and
installation. Mr. B found out about the purchase and stopped payment on the check.
What defense did Mr. B apply in this scenario?
YOUR
ANSWER
CORRECT
ANSWER
YOUR
ANSWER
CORRECT
ANSWER
Universal defense
Good faith
Tender of payment
Discharge by reacquisition
Personal defense
45.
What is a bank’s liability regarding an altered check that has been honored?
It is not liable as long as it properly maintains its explicit duty to examine checks
before making final payment.
It is not liable if it asserts customer contributory negligence and the bank has
exercised ordinary care.
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YOUR
ANSWER
CORRECT
ANSWER
YOUR
ANSWER
CORRECT
ANSWER
YOUR
ANSWER
CORRECT
ANSWER
It is not liable if the customer fails to report the alteration within one year from
the date of the bank statement.
It is not liable because it will recover from all transferors as they warrant that the
check is unaltered upon presentation.
46.
What is one challenge of electronic fund transfer (EFT)?
Banks are no longer required to provide monthly statements to accounts with
only EFT activity.
Consumers are liable for up to $1,000 in fraudulent charges if they report a lost
debit card five days after its loss.
Consumers risk potential unauthorized access to personal data and fraudulent
transactions.
Banks are not liable for punitive damages if they violate the Electronic Fund
Transfer Act (EFTA).
47.
What is the function of a garnishment when a debtor defaults?
It permits a creditor to collect a debt by seizing property from the debtor directly.
It permits a creditor to collect a debt by seizing property of the debtor that is
held by a third party.
It permits a creditor to collect a debt by seizing property directly from the debtor
but is limited by the debtor's monthly pay.
It permits a creditor to collect a debt by seizing property from the debtor for a
sum less than what is owed.
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48.
What is one characteristic of a fixed-rate mortgage?
YOUR
ANSWER
CORRECT
ANSWER
It includes principal, interest, property taxes, and insurance.
It has an interest rate that is set for the duration of the mortgage loan.
It shifts the risk that the interest rate will change from the borrower to the
lender.
It incorporates a workout agreement with a forbearance and waiver of standing
requirement option for the debtor.
49.
Under the statute of frauds, what would affect the surety’s obligation to pay a third parties debt?
YOUR
ANSWER
CORRECT
ANSWER
YOUR
ANSWER
CORRECT
ANSWER
A suretyship is null and void if a debtor modifies the debt and does not disclose
the modification to the surety.
A compensated surety is partially released if a creditor’s modification of the
obligation is not disclosed to the surety.
A surety’s obligation is not released if an undisclosed credit risk is not disclosed
to the surety.
A surety’s obligation is released if a creditor does not exhaust its collection
efforts within the time period required by the statute of limitations.
50.
When is a debtor’s real property exempt from creditors’ actions?
All real property is exempt from execution or attachment pursuant to federal
statute.
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YOUR
ANSWER
CORRECT
ANSWER
YOUR
ANSWER
CORRECT
ANSWER
YOUR
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All real property is exempt from execution or attachment in some states by state
law.
Some low-income housing property is exempt from execution or attachment by
state law.
Some real property is exempt from execution or attachment to ensure the debtor
retains shelter.
51.
What is the definition of a security agreement?
An agreement to pay between a secured party and financial institution
An agreement between a secured debtor and a filing officer
An agreement that creates or provides for a security interest
An agreement that secures a debtor's home from creditors
52.
What is a Uniform Commercial Code-1 (UCC-1) financing statement?
A document that provides a creditor with ownership rights to collateral in the
event of a debtor’s default
A document that supplies information to an appropriate government office for
internal control
A document that the creditor files for immediate ownership and rights to
collateral
A document that the creditor files with a description of collateral that is about to
be designated for resale
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53.
What is one step the creditor must perform when creating a security interest?
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Listing members of an organization on a financing statement
Including material variations in names in order to prevent the financing
statement from being ruled as misleading
Amending a financing statement for collateral acquired within two months of a
debtor’s name change
Listing all equipment owned by the debtor in a financing statement
54.
What are two requirements for creating a security interest?
Choose 2 answers
The creditor determines if the debt can be satisfied through the possession and
sale of the collateral.
The security agreement contains a description that reasonably identifies the
collateral.
The creditor establishes that it has priority over other creditors or buyers who
may have superior rights in the same collateral.
The secured party gives to the debtor something of sufficient enough value to
support the contract.
55.
What is one of the general rules of priority between debtors and creditors in secured transactions?
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Conflicting unperfected security interests share equally in the collateral.
Conflicting perfected security interests share equally in the collateral.
Perfected security interests generally have priority over other interests.
Perfected security interests have no priority in bankruptcy agreements.
56.
In which circumstance does a buyer have a priority claim to the collateral perfected by a creditor?
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When the buyer purchases the item and the creditor fails to file another
financing statement before the date of the purchase
When the buyer pays value to the seller and is using it as a business asset
When the buyer purchases the item for personal use and is unaware that the
secured creditor has a perfected security interest
When the buyer acquires the item at a fundraising event for personal use
57.
How does Chapter 7 of the Bankruptcy Code provide relief for debtors?
Through reorganization of a person’s debts and assets
Through adjustment of a person’s debts and protection of nonexempt assets
Through forgiveness of a person’s debts and protection of assets
Through liquidation of a person’s nonexempt assets and distribution to creditors
58.
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Why is a reorganization bankruptcy filed?
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To allow a creditor to reorganize its operations and financial affairs over a period
of time using a formulated plan with the debtor
To allow a creditor to discharge a portion of its debt while reorganizing its
operations and financial affairs using a formulated plan with the debtor
To allow a fast-track procedure for small businesses whose assets do not exceed
$2,490,000 and do not own or manage real estate
To allow a debtor to continue its business operations while working with its
creditors to form a reorganization plan for remaining debt
59.
Which provision within a repayment plan determines approval for debt adjustment?
Identical treatment for secured and unsecured claims as one population
Payment of claims entitled to priority, such as taxes
Payments that begin no later than forty-five days after the plan has been filed
Creditor performance of means testing to assure sufficiency of disposable
income to repay debts
60.
Which factor describes a family farmer under Chapter 12 of the Bankruptcy Code?
Gross income is more than 50% farm dependent, and debt at least 50% farm
related.
Gross income is less than 50% farm dependent, and debt is less than 50% farm
related.
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Gross income is at least 50% farm dependent, and debt is at least 50% farm
related.
Gross income is at least 50% farm dependent, and debt is less than 50% farm
related.
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