Clark_11e-AM-Ch29.doc

Clark_11e-AM-Ch29.doc - 227 C HAPTER 29 S ECURED T...

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Unformatted text preview: 227 C HAPTER 29 S ECURED T RANSACTIONS A NSWERS TO Q UESTIONS AT THE E NDS OF THE C ASES CASE 29.1QUESTIONS (PAGE 594) 1A. Under what circumstances might a financing statement not be consid- ered effective even if it does not identify the debtor correctly? The court in this case stated that [t]here is a safe harbor under UCC 9506(c).. If a search of the filing office's records under the debtor's correct name, using the filing office's standard search logic, if any, would nevertheless disclose that financing statement, the name provided does not make the financing statement seriously misleading. Also, a financing state- ment that uses an incorrect name might be acceptable if no other creditor challenges the filing, either because no other creditor is interested or because the other creditor uses the same misidentifying name. 2A. In most Latin American countries, a persons surname consists of the fa- ther's name followed by the mother's name. Should this fact have changed the result in this case? Why or why not? Corona made the argument that the UCCs debtor name requirement is governed by the naming convention of Latin American countries because debtor is from Mexico. The court reject[ed] the argument because the strawberries were planted in and the debt obligation arose in Santa Barbara County, not Mexico. The court added that the Latin American naming convention is exactly opposite Anglo-American tradition .... Debtor's last name did not change when he crossed the border into the United States. The naming convention is legally irrele- vant for UCC-1 purposes and, if accepted, would seriously undermine the concept of ... perfection. CASE 29.2(PAGE 600) THE GLOBAL DIMENSION Motor vehicles can be moved easily from one jurisdiction to another. Is it likely that the result would have been different if the Murphys or Laxton had purchased the vehicles in, say, Canada? Why or why not? No, assuming all of the other facts in the case were the same. The same law would have applied to the other par- ties, and the buyers completing their transaction in a different country would not have affected the interplay of the statutes among the other parties to this case. 228 UNIT SIX: CREDITORS RIGHTS AND BANKRUPTCY THE E-COMMERCE DIMENSION Would it have affected the outcome in this case if the title certificates had been filed in a database that could be accessed online? Explain. No. In fact, R.C. 4505.13(A)(2)which the court relied on to establish that the UCCs provisions take precedence in the circumstances of this caseprovides no exception for the entry of a notation of the security interest into the automated title processing system if a physical certificate of title for the motor vehicle has not been issued. CASE 29.3(PAGE 606) WHAT IF THE FACTS WERE DIFFERENT?...
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This note was uploaded on 10/11/2010 for the course MGT 301 taught by Professor Pederson during the Fall '10 term at SUNY Stony Brook.

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Clark_11e-AM-Ch29.doc - 227 C HAPTER 29 S ECURED T...

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