Gunther Wins a $25,000 Judgment Against Krissa, and Krissa Refuses

question 85

Multiple Choice

Gunther wins a $25,000 judgment against Krissa, and Krissa refuses to pay. Krissa works for Iniversal Electronics. Gunther obtains a postjudgment writ of garnishment from the court ordering Iniversal Electronics to pay 25 percent of Krissa's weekly disposable earnings directly to Gunther. However, Gunther is not satisfied with this, and he asks the court to increase Krissa's pay deduction to 50 percent, which the court refuses to do. Which federal Act allows Krissa to retain 75 percent or more of her earnings in a writ of garnishment?

• A) Fair Credit Reporting Act
• B) Fair Credit Billing Act
• C) Title III of the Consumer Credit Protection Act
• D) Fair Debt Collection Practices Act

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Definitions:

Allocation Base

A factor or criterion used for distributing overhead costs to products or services, based on activities such as direct labor hours or machine hours.

Departmental Overhead Rates

The method of allocating overhead (indirect costs) to specific departments based on relevant criteria, such as department size or usage.

Direct Labor Hour

A direct labor hour is a measure of the amount of time a worker spends directly manufacturing a product or providing a service, often used to allocate labor costs in production.

Finishing Department

The final phase in a manufacturing process where products undergo final touch-ups, quality assurance checks, and packaging.