Ch29-TB1-WBL-10e

Ch29-TB1-WBL-10e - Chapter29 SecuredTransactions

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Chapter 29 Secured Transactions N.B.:   TYPE  indicates that a question is new, modified, or unchanged, as  follows. N A question  new  to this edition of the Test Bank. + A question  modified  from the previous edition of the Test Bank, = A question  included  in the previous edition of the Test Bank. TRUE/FALSE QUESTIONS 1. A security interest is enforceable only if the collateral is in the secured  party’s possession. ANSWER: F PAGE: 581 TYPE: = 2. The person who owes the payment of a secured obligation is the secured  party. ANSWER:  F PAGE: 581 TYPE: N 3. A security interest is   not   enforceable   before   the creditor’s rights have at- tached to the collateral. ANSWER: T PAGE: 581 TYPE: = 4. To create an enforceable security interest, the secured party must give  value. ANSWER:  T PAGE: 582 TYPE: = 35
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36 TEST BANK 1—UNIT SIX: CREDITORS’ RIGHTS AND BANKRUPTCY 5. An authenticated security agreement can be in an electronic medium. ANSWER: T PAGE: 582 TYPE: = 6. A chair bought by a business office would be classified as a consumer good. ANSWER:  F PAGE: 583 TYPE: = 7. To   be   valid,   a   financing   statement   must   contain   a   description   of   the  collateral. ANSWER: T PAGE: 588 TYPE: = 8. The state office in which a financing statement should be filed depends on  the debtor’s location. ANSWER:  T PAGE: 588 TYPE: = 9. Filing a financing statement with the appropriate public office is the only  way to perfect a purchase-money security interest in consumer goods.  ANSWER: F PAGE: 589 TYPE: = 10. A financing statement is effective for five months from the date of filing. ANSWER:  F PAGE: 589 TYPE: + 11. A purchase-money security interest arises only when a   seller   provides a  buyer with the “purchase money” to buy goods. ANSWER: F PAGE: 589 TYPE: + 12. A continuation statement is effective only if it is filed within six months  before  the expiration of a financing statement. ANSWER:  T PAGE: 589 TYPE: N 13. A debtor may give a creditor a security interest in inventory that the debtor  expects to acquire in the future. ANSWER: T PAGE: 591 TYPE: =
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CHAPTER 29: SECURED TRANSACTIONS 37 14. A perfected security interest will always have priority over an unperfected  security interest. ANSWER:  T PAGE: 592 TYPE: +
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38 TEST BANK 1—UNIT SIX: CREDITORS’ RIGHTS AND BANKRUPTCY 15. When two secured parties have perfected security interests in the same  collateral, generally the first to perfect has priority.
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This note was uploaded on 10/15/2010 for the course ACCT ACCT40 taught by Professor Birnbaum during the Fall '08 term at CUNY Brooklyn.

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Ch29-TB1-WBL-10e - Chapter29 SecuredTransactions

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