The Debtor-Creditor Relationship Is Addressed by Both the Bankruptcy and Insolvency

question 14

Multiple Choice

The debtor-creditor relationship is addressed by both the Bankruptcy and Insolvency Act and various other statutes.Which of the following statements is TRUE?

• A)As a result of sections 91 and 92 of the Constitution,all of those statutes are enacted by the federal government.
• B)All of those statutes establish various class action procedures that allow for the resolution of all of the debtor's financial difficulties at one time.
• C)The federal Bankruptcy and Insolvency Act is the most important statute dealing with the debtor-creditor relationship of insolvent debtors and applies to all Canadian businesses and individuals.
• D)As a general rule,a judge is entitled to resolve a conflict between the Bankruptcy and Insolvency Act and another statute dealing with the debtor-creditor relationship by asking which piece of legislation provides the fairer result in the circumstances.
• E)The Companies Creditor's Arrangement Act provides an alternative to bankruptcy for all business debtors.

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Definitions:

Conciliation/Mediation

Processes where a neutral third party helps disputing parties to come to a mutually acceptable agreement or resolution.

Arbitration of Disputes

A method of resolving disputes outside the courts, where the parties to a disagreement allow an impartial third party to make a decision.

Rights Dispute

A conflict regarding the entitlements or privileges granted to individuals or groups, often requiring mediation or legal intervention to resolve.

Collective Agreements

Collective agreements are contracts made between employers and a group of employees, often represented by a union, determining the terms of employment, wages, and workplace policies and conditions.