Secured Transactions MCQ - Secured Transactions MC...

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Secured Transactions MC Questions 1. Wine purchased a computer using the proceeds of a loan from MJC Finance Company. Wine gave MJC a security interest in the computer. Wine executed a security agreement and financing statement, which was filed by MJC. Wine used the computer to monitor Wine’s personal investments. Later, Wine sold the computer to Jacobs, who used it for family purposes. Jacobs was unaware of MJC’s security interest. Wine now is in default under the MJC loan. May MJC repossess the computer from Jacobs? A. Yes, because MJC’s security interest was perfected before the purchase by Jacobs. B. No, because Jacobs intended to use the computer for family or household purposes. C. No, because Jacobs was unaware of the MJC security interest. D. Yes, because the purchase by Jacobs of the computer made Jacobs personally liable to MJC. 2. Which is the true statement about the rights of the debtor and the secured party after default? A. If the debtor has paid 50% of the debt in the case of consumer goods, disposition is mandatory unless the debtor renounces his/her rights. B. The secured party has no general right to repossess the collateral except in the case of consumer goods. C. The secured party may retain or dispose of the collateral at his/her discretion. D. If the security interest secured an indebtedness, the debtor has an absolute responsibility to pay any deficiency remaining following disposition. 3. Under the Secured Transactions Article of the UCC, which of the following requirements is necessary to have a security interest attach? Debtor Has Proper Filing Value Given Rights in the of a Security by the Collateral Agreement Creditor A. Yes Yes Yes B. Yes Yes No C. No Yes Yes D. Yes No Yes 4. Grey Corp. sells computers to the public. Grey sold and delivered a computer to West on credit. West executed and delivered to Grey a promissory note for the purchase price and a security agreement covering the computer. West purchased
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the computer for personal use. Grey did not file a financing statement. Is Grey’s security interest perfected? A. Yes, because it was perfected at the time of attachment. B. No, because Grey failed to file a financing statement. C. Yes, because Grey retained ownership of the computer. D. No, because the computer was a consumer good. 5.
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Secured Transactions MCQ - Secured Transactions MC...

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