Question

Refresh Inc.’s debt to Spring Water Company is past due. Spring brings a legal action against Refresh to collect the debt. Spring asks the court to order Tempo Bank, in which Refresh has an account, to pay a portion of the funds to Spring.
This is a request for:

A. a writ of execution.
B. an order of garnishment.
C. an order that would violate most state laws.
D. an artisan’s lien.

Answer 1

Answer:

The correct option is B,an order of garnishment.

Explanation:

An order of garnishment is a way of enforcing court judgement whereby a third party who is indebted to the judgement debtor is ordered by the court to pay the damages awarded against the judgement debtor directly to the judgement creditor.

In this instance,Refresh Inc, is the judgement debtor whereas Spring Water Company is the judgement creditor(beneficiary of the judgement) and Tempo Bank is the third party that  would act on the order of the court.