Question 1

Which of the following is a writing that demonstrates a right to payment of money?

Accepted Answer

A)  Chattel paper. 
B)  Goods paper. 
C)  Payment paper. 
D)  An instrument. 
E)  An authorization. 
A)  Chattel paper. 
B)  Goods paper. 
C)  Payment paper. 
D)  An instrument. 
E)  An authorization.

Question 2

If a buyer purchases chattel paper in the ordinary course of business and without notice of any prior security interest,the buyer can obtain the good involved free of any security interest.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is true under the UCC regarding a security interest in collateral that has been perfected in one state when the collateral is moved to another state?

Accepted Answer

A)  A security interest in collateral that has been perfected in one state will generally expire immediately when the collateral is moved to another state. 
B)  A security interest in collateral that has been perfected in one state will generally transfer to another state for a period of four months from the date that the property is brought into the other state. 
C)  A security interest in collateral that has been perfected in one state will generally transfer to another state for a period of six months from the date that the property is brought into the other state. 
D)  A security interest in collateral that has been perfected in one state will generally transfer to another state for a period of two months from the date that the property is brought into the other state. 
E)  A security interest in collateral that has been perfected in one state will generally transfer to another state for a period of 30 days from the date that the property is brought into the other state. 
A)  A security interest in collateral that has been perfected in one state will generally expire immediately when the collateral is moved to another state. 
B)  A security interest in collateral that has been perfected in one state will generally transfer to another state for a period of four months from the date that the property is brought into the other state. 
C)  A security interest in collateral that has been perfected in one state will generally transfer to another state for a period of six months from the date that the property is brought into the other state. 
D)  A security interest in collateral that has been perfected in one state will generally transfer to another state for a period of two months from the date that the property is brought into the other state. 
E)  A security interest in collateral that has been perfected in one state will generally transfer to another state for a period of 30 days from the date that the property is brought into the other state.

Question 4

Which of the following was the result in the case in the text In re Girolamo Afonica,the case in which a debtor's bankruptcy discharge was challenged by a bank that held a security interest in a vehicle that the plaintiff,without notice to the bank,transferred to a junk dealer because his ex-wife did not like it sitting in her driveway?

Accepted Answer

A)  The court found that the debtor transferred the vehicle with the specific intent to hinder, delay, or defraud the plaintiff and that his discharge would be denied in total as to all debts, not just the one owed to the plaintiff bank. 
B)  The court found that the defendant's bankruptcy discharge would not be denied in total, but that the discharge as to the plaintiff bank's interest would be denied. 
C)  The court found that the defendant's bankruptcy discharge would be allowed in total, including the discharge as to the vehicle, because the bank failed to notify the defendant that he was required to provide notification prior to disposing of collateral. 
D)  The court found that the defendant's bankruptcy discharge would be allowed in total, including the discharge as to the vehicle, because the bank failed to prove that the defendant acted with malice. 
E)  The court found that the defendant's bankruptcy discharge would be allowed in total, including the discharge as to the vehicle, because the vehicle was worth less than $1,000 at the time of transfer. 
A)  The court found that the debtor transferred the vehicle with the specific intent to hinder, delay, or defraud the plaintiff and that his discharge would be denied in total as to all debts, not just the one owed to the plaintiff bank. 
B)  The court found that the defendant's bankruptcy discharge would not be denied in total, but that the discharge as to the plaintiff bank's interest would be denied. 
C)  The court found that the defendant's bankruptcy discharge would be allowed in total, including the discharge as to the vehicle, because the bank failed to notify the defendant that he was required to provide notification prior to disposing of collateral. 
D)  The court found that the defendant's bankruptcy discharge would be allowed in total, including the discharge as to the vehicle, because the bank failed to prove that the defendant acted with malice. 
E)  The court found that the defendant's bankruptcy discharge would be allowed in total, including the discharge as to the vehicle, because the vehicle was worth less than $1,000 at the time of transfer.

Question 5

When perfection by possession occurs,the parties must have a written security agreement.

Accepted Answer

A) True 
 B)False

Exam 30: Secured Transactions

Which of the following is a writing that demonstrates a right to payment of money?

If a buyer purchases chattel paper in the ordinary course of business and without notice of any prior security interest,the buyer can obtain the good involved free of any security interest.

Which of the following is true under the UCC regarding a security interest in collateral that has been perfected in one state when the collateral is moved to another state?

When perfection by possession occurs,the parties must have a written security agreement.

An Introduction to Dynamic Business Law

Business Ethics

The Uslegal System

Alternative Dispute Resolution

Constitutional Principles

International and Comparative Law

Crime and the Business Community

Tort Law

Negligence and Strict Liability

Product Liability

Liability of Accountants and Other Professionals

Intellectual Property

Introduction to Contracts

Agreement

Consideration

Capacity and Illegality

Reality of Assent

Contracts in Writing

Third Party Rights to Contracts

Performance,Breach of Contract,discharge,and Remedies

Introduction to Sales and Lease Contracts

Title,Risk of Loss,and Insurable Interest

Performance and Obligations Under Sales and Lease Contracts

Remedies for Breach of Sales and Lease Contracts

Warranties

Negotiable Instruments: Negotiability and Transferability

Negotiation, Holder in Due Course, and Defenses

Liability,defenses,and Discharge

Checks and Electronic Fund Transfers

Other Creditors Remedies and Suretyship

Bankruptcy and Reorganization

Agency Formation and Duties

Liability to Third Parties and Termination

Forms of Business Organizations

Partnerships: Nature, Formation, and Operation

Partnerships: Termination and Limited Partnerships

Corporations: Formation and Financing

Corporations: Directors, Officers, and Shareholders

Corporations: Mergers, Consolidations, and Termination

Corporations: Securities and Investor Protection

Employment and Labor Law

Employment Discrimination

Administrative Law

Consumer Law

Environmental Law

Antitrust Law

The Nature of Property, Personal Property, and Bailments

Real Property

Landlord-Tenant Law

Insurance Law

Wills and Trusts

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