Exam 19: Secured Transactions and Bankruptcy

Which party routinely buys goods in good faith from a person who routinely sells such goods?

If a buyer purchases chattel paper or an instrument in the ordinary course of business and he or she is unaware of any security interest in the good,the buyer obtains the good ________.

If an individual was a debtor in a bankruptcy case that was dismissed within 180 days of the current case,the individual is generally not eligible to be a debtor under Chapters 7,11,or 13.

According to the Uniform Commercial Code (UCC),a purchase money security interest (PMSI)exists in all but which of the following situations?

Overextended Debtor.Dennis purchased a big-screen television from ABC Electronics and financed the purchase through ABC Electronics based on an agreement granting ABC Electronics a security interest in the television and requiring that Dennis make monthly payments.Three months later,Dennis was unable to continue making payments on the television because he had bought a boat,a new car,an expensive engagement ring for his girlfriend,and some other items.The manager from ABC Electronics called and asked Dennis to return the television.Dennis refused on the basis that ABC Electronics never perfected its interest in the television.Which of the following is the correct term for designating the effect of Dennis's failure to continue making payments?

________ is a writing that demonstrates a right to payment of money.

Which of the following is true regarding the number of creditors who must vote to accept a Chapter 11 reorganization plan?

When a debtor sells collateral,the secured party automatically has an interest in the proceeds the debtor receives in exchange for the collateral.

An interest in personal property or fixtures which secures payment or performance of an obligation is a called a(n)________.

Under the Uniform Commercial Code,a buyer in the ordinary course of business can take goods free of any security interest created by the seller of the goods unless the security interest is perfected.

A ________ transaction is a transaction in which the payment of a debt is guaranteed by the debtor's personal property owned by the debtor.

Repossession.Tina sold used vehicles.She sold a used pick-up truck to Joan and a used convertible to Barry.She properly obtained a security interest in both vehicles.Both Joan and Barry defaulted on payments owed to Tina for the vehicles.Tina told her assistant Samantha that the only legal remedy was repossession; that she was going after the vehicles; and that Samantha should call law enforcement if she did not show up at the office by 10 a.m.for the next few mornings.Tina decided that she would repossess Joan's pick-up at Joan's house.Therefore,Tina slipped into the driveway at midnight one night and started the engine.Joan immediately ran out and confronted Tina.Tina shoved Joan away and drove off in the pick-up truck.Tina was able to repossess Barry's convertible in a public parking lot with no altercation with him.Which of the following is true regarding Tina's repossession of the pick-up truck?

Which of the following is a meeting of all the creditors listed in the Chapter 7 required schedule for liquidation?

Which of the following is a moratorium for almost all creditor litigation against a debtor in a Chapter 7 bankruptcy proceeding?

A security interest may not apply to personal property that is not yet in the debtor's possession.

Creditors can attempt to repossess property during bankruptcy proceedings.

Which of the following is true regarding the effect of an automatic stay on claims of secured creditors in a Chapter 7 proceeding?

Which chapter of the Bankruptcy Code is used for the sale of a debtor's assets by a trustee and the distribution of money to creditors?

Who calls the creditors' meeting in a Chapter 7 bankruptcy proceeding?

What kind of property is acquired by the debtor after the security agreement is made?