Milt borrowed $200 from Femi. He agreed verbally that Femi could take possession of his books and keep them until he had repaid the loan in full. The next day, after Femi had the books in her possession, Orin offered to purchase the books from Milt for $150. Milt accepted the offer and took Orin's money to retrieve the books from Femi. Femi, however, refused to give up possession of the books until she was paid in full. Both Milt and Orin now claim that Femi has no rights to the books because she does not have a signed security agreement and has not filed a financing statement. In this case, which of the following statements is true according to the Uniform Commercial Code?

A. Femi's security interest is not attached in the absence of a written security agreement even though she maintained possession of the books.
B. Femi's security interest in the collection will be protected only if she files a financing statement.
C. Femi's failure to file a public notice rejects the perfection of the agreement even though she is in possession of the collateral.
D. Femi's possession of the collection satisfies the perfection requirement because it puts a third party like Orin on notice of Femi's interest in the property.


Answer: D

Business

You might also like to view...

What are the early and late start times for activities C, D, E, and F?

Carrie meticulously calculated the early and late start and finish times for her latest project and recorded them using different colors of sand on a pristine slab of white marble. She used red for late start and late finish times and green for early start and early finish times. Activity durations and their identifiers were written with black sand. She finished her task and had an opportunity to admire her work only briefly before a colleague came by and swept most of it away. Sadly, this was before Carrie could record the numbers on a more permanent medium, so now she turns to you to help. Activity Predecessor Duration Early Start Early Finish Late Start Late Finish A - 10 B - 7 11 C A 7 D A 15 14 E B 11 19 F B 10 G D,E 24 H F 24 J C 28 K G,H,J 36

Business

A business collects cash from a customer for services that were preformed one month earlier. Which of the following accounts is credited?

A) Cash B) Accounts Receivable C) Service Revenue D) Accounts Payable

Business

Answer the following statement(s) true (T) or false (F)

1. Creditors of the partnership may look to the personal property of partners in the event that partnership assets are insufficient to cover a debt. 2. The partnership agreement may specify that one partner has the right to manage the business of the partnership. 3. Partners may purchase insurance to cover many potential liabilities. 4. Unless otherwise specified in the partnership agreement or other written agreement, in states that follow the Uniform Partnership Act (1914), the partnership dissolves whenever one partner ceases to be a partner, for whatever reason. 5. A partner may designate a substitute to assume all of his or her rights in and responsibilities to a partnership.

Business

For a change to constitute an alteration, the person making the change must be a party to the instrument

Indicate whether the statement is true or false

Business