Which of the Following Is True Regarding Recovery Under a Mechanic's

question 41

Multiple Choice

Which of the following is true regarding recovery under a mechanic's lien?

• A) Filing a lien automatically ensures that a contractor will receive some money.
• B) Even if a contractor performs deficient work, a mechanic's lien may be enforced.
• C) Federal law governs enforcement of mechanic's liens.
• D) There is no requirement that a contractor give a debtor notice of a foreclosure.
• E) Any excess funds from a sale to pay the lien go to the debtor.

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Definitions:

Capital Account

An account on a country's balance of payments that records transactions involving the acquisition or disposal of assets and liabilities.

Income Distribution

The manner in which total income is spread amongst the shareholders, partners, or other stakeholders in a company or economy.

Net Income

The total profit of a company after all revenues, expenses, taxes, and dividends have been deducted.

Personal Use

Usage of an item or service solely for an individual’s needs and not for business or professional scenarios, emphasizing the non-commercial aspect.