bus law ch6

bus law ch6 - breach of the peace. Green will probably: not...

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1.To create an enforceable security interest, the secured party must give vlaue: TRUE 2. A financing statement is effective only if it is filed electronically: FALSE 3. An employee can discharge an employee due to garnishment:FALSE 4. If the assets in a debtor s estate in bankruptcy are insufficient to pay fully all creditor s, none of the creditors re paid:FALSE 5.Qwik Credit Corporation lends $20,o00 to Ross. A financing statement is filed on May1,but the security agreement is not signed until Ross gets money on May 4. Ross also borrows money from State Bank, which advance funds, files a financing statements, and signs a security agreement on May 2. Ross used the same property as collateral for both loans. In a dispute between the lenders over rights to the collateral Qwick Credit will: lose, because State Bank perfected first. 6. Green Landscape Company buys a backhoe on credit from Heavy Equipment Corporation, but does make a payment on the loan for several months. Heavy repossesses the backhoe by towing it from a public street, Green sues Heavy for
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Unformatted text preview: breach of the peace. Green will probably: not prevail, because the repossession was not a breach of the peace. 7. Easy Credity, Inc., repossesses a television set(a consumer good that is not a purchase money security interest) from Fiona, intending to install it is Easy s office instead of reselling it. Easy notifies Fiona of this intent. Easy must notify: secured parties who have notified Easy of claims to the set and those whose claims are in the public records. 8.Owen borrows money from Pat. Owen defaults. To use attachment as remedy, Pat must first: file a suit against Owen. 9. Brenda files a Chapter petition for bankruptcy. She must include with the petition: a list of her creditors and the amount of the debt owed to each, a list of her property, and a statement of her financial affairs. 10. Phil s voluntary petition for bankruptcy is found to be proper. The order for relief is effective as soon as : Phil files the petition....
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