16. Rancho West owes Silo & Barn Inc. $5,000 on their contract, but refuses to pay. To collect, Silo files a mechanic’s lien, under which security for the debt is represented by a. Rancho’s personal property. b. Rancho’s real estate. c. the $5,000 owed on the contract. d. property held by a third party.17. Under Chapter 7, once the proceeds have been distributed, the obligations of the debtor most likely to be discharged are a. taxes accruing within the last three years. b. claims based on the debtor’s willful or malicious conduct or fraud. c. none of the choices. d. domestic-support obligations.18. Dana operates Energy Inc., a corporation in the fuel-supply business. Dana wants to create a plan under which the firm pays a portion of its debts, is discharged of the remainder, and is allowed to continue in business. Energy should file a petition in bankruptcy for relief through a. a liquidation. b. a reorganization. c. a repayment plan. d. an adjustment of debts.19. Under any chapter of the Bankruptcy Code, failing to file the necessary documents with the debtor’s petition for relief can result in a. an automatic stay. b. the discharge of the debtor’s obligations. c. the dismissal of the petition. d. the distribution of the debtor’s assets to his or her creditors.20. Mary is a wealthy business owner. At a Thanksgiving community event to recognize charities in town, Mary runs into Diana. Diana is the director of "For the Children," (FTC) a well respected charity that works with under-privileged youth and is constantly short of money. Mary tells Diana that she (Mary) wants to help and by Christmas she will contribute $50,000 to FTC. Excited by the promised gift, Diana spends the next three weeks buying kitchen, office, and playground equipment that totals $37,500. Mary does not make the contribution.A couple days after Christmas, Diana asks Mary where the funds are. Mary says she thought about it and now she doesn't want to make the "gift." Diana on behalf of FTC files suit. The likely result of the suit: a. There was no consideration for Mary's promise and the contract is unenforceable -- Mary wins a defense judgment. b. Diana (FTC) bought the equipment in reliance on Mary's promise. For that reason, FTC is awarded $50,000. c. Diana (FTC) bought the equipment in reliance on Mary's promise. For that reason FTC is awarded $37,500. d. Mary's promise to FTC was false. FTC will recover the $50,000 promised by Mary plus punitive damages for the fraud.