Module 3 Sample Questions Part 2

Module 3 Sample Questions Part 2 - Module 3 Part 2 Sample...

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Module 3 Part 2 Sample Questions True/False Indicate whether the statement is true or false. ____ 1. Under Article 9 of the UCC, "value" may include past consideration such as an antecedent debt. ____ 2. "Perfection" is required in order for the secured party to enforce rights against the debtor. ____ 3. Hank's tractor is collateral for a loan and Hank moves to the next county. In most states, the security instru- ment must be re-filed in the proper county or it will render the security interest ineffective. ____ 4. A security interest is ineffective against the debtor until it "attaches." ____ 5. A buyer in the ordinary course of business takes collateral (other than farm products) free of any security in- terest created by the buyer's seller, even if the security interest is perfected and the buyer knows of its exist- ence. ____ 6. If the debtor is in default and the secured party wants to repossess the collateral in order to sell it, he must get a court order to do so. ____ 7. If Sharpe Finance Co. has a secured interest in Jeff's car and Jeff is in default, in most states, Sharpe may take the car from in front of Jeff's house without getting a court order. ____ 8. A PMSI is created in goods when a seller retains a security interest in the goods sold on credit by a security agreement. ____ 9. First Finance Company filed its financing statement for a purchase money security interest in Donald's lawn tractor on March 1. Donald purchased the lawn tractor on February 21. If Donald files for bankruptcy on Feb- ruary 28, the trustee will have priority because the bankruptcy petition is filed before the creditor perfects. ____ 10. A bankruptcy trustee may invalidate a granting of a security interest from the debtor if it was made on the date of or within 90 days before the filing of the bankruptcy petition. ____ 11. An automatic stay would not prevent a creditor from creating a lien against the debtor's property. ____ 12. A trustee in bankruptcy may sell the property of the debtor's estate. ____ 13. Chapter 7 applies to all debtors, with the exception of railroads, insurance companies, banks, savings and loan associations, homestead associations, and credit unions. ____ 14. The court must confirm a plan of reorganization before it is binding on the parties. ____ 15. A receiver is a disinterested person appointed at the discretion of the court to manage, liquidate, and conserve assets of a debtor. ____ 16. Most student loans cannot be discharged under Chapter 13. ____ 17. Alimony and support payments owed to the debtor who files bankruptcy are part of the bankruptcy estate that can be distributed to the debtor's creditors for the payment of allowed claims filed with the bankruptcy court. ____ 18.
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This note was uploaded on 01/20/2011 for the course MGT 641 taught by Professor Staff during the Spring '08 term at Kentucky.

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Module 3 Sample Questions Part 2 - Module 3 Part 2 Sample...

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