Question 1

Article 9 applies to any transaction intended to create a security interest in personal property or fixtures.

Accepted Answer

A) True 
 B)False

Question 2

Great State Bank and First Federal Bank have a security interest in TriColor's equipment.If neither secured party is perfected,the first to sue or repossess has priority over the collateral.

Accepted Answer

A) True 
 B)False

Question 3

Donna defaulted on her loan owed to Second State Savings and Loan.The loan was secured with Donna's car.Donna used the car for personal and family reasons.Which statement is correct?

Accepted Answer

A) Second State may take Donna's car without a court order if this can be done without a breach of the peace. 
B) Second State may take Donna's car without a court order even if it means a breach of the peace. 
C) Second State may not take Donna's car because it is a consumer good. 
D) Second State may not take Donna's car because perfection was automatic. 
A) Second State may take Donna's car without a court order if this can be done without a breach of the peace. 
B) Second State may take Donna's car without a court order even if it means a breach of the peace. 
C) Second State may not take Donna's car because it is a consumer good. 
D) Second State may not take Donna's car because perfection was automatic.

Question 4

Wedney,Inc.has a purchase money security interest in one of Yoro Chicken's meat processing machines.Wedney filed a financing statement on the day the machine was delivered,perfecting its interest.Great State Bank already had a security interest in the machine.Which party has superior priority rights in the meat processing machine?

Accepted Answer

A) Wedney.A PMSI in collateral other than inventory takes priority over a conflicting security interest if the PMSI is perfected at the time the debtor receives the collateral or within 20 days after he receives it. 
B) Great State Bank,since it had an earlier security interest. 
C) The party who is first to repossess the collateral has priority rights. 
D) The creditors have equal priority. 
A) Wedney.A PMSI in collateral other than inventory takes priority over a conflicting security interest if the PMSI is perfected at the time the debtor receives the collateral or within 20 days after he receives it. 
B) Great State Bank,since it had an earlier security interest. 
C) The party who is first to repossess the collateral has priority rights. 
D) The creditors have equal priority.

Question 5

First Federal loaned Madeline $20,000 to purchase a new van.The van was for Madeline's personal and family use.First Federal's security interest is a purchase money security interest which perfects only upon filing a financing statement.

Accepted Answer

A) True 
 B)False

Exam 24: Secured Transactions

Article 9 applies to any transaction intended to create a security interest in personal property or fixtures.

Great State Bank and First Federal Bank have a security interest in TriColor's equipment.If neither secured party is perfected,the first to sue or repossess has priority over the collateral.

Donna defaulted on her loan owed to Second State Savings and Loan.The loan was secured with Donna's car.Donna used the car for personal and family reasons.Which statement is correct?

First Federal loaned Madeline $20,000 to purchase a new van.The van was for Madeline's personal and family use.First Federal's security interest is a purchase money security interest which perfects only upon filing a financing statement.

Introduction to Law

Ethics and Corporate Social Responsibility

International Law

Common Law, Statutory Law, and Administrative Law

Constitutional Law

Dispute Resolution

Crime

Intentional Torts and Business Torts

Negligence, Strict Liability, and Product Liability

Privacy and Internet Law

Introduction to Contracts

Agreement: Offers and Acceptances

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Voidable Contracts: Capacity and Consent

Written Contracts

Third Parties

Contract Termination

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Introduction to Sales

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Creating a Negotiable Instrument

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Accountants Liability

Agency Law

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Starting a Business: Llcs and Other Options

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