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Final Case Problem 5.2

  • Date Submitted: 11/19/2012 06:25 AM
  • Flesch-Kincaid Score: 73.8 
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Show-Me Display Company, a creditor, agrees to sell display cases to Total Retail, Inc. (TRI). TRI agrees to make monthly payments on the cases, which serves as collateral for the debt until the balance is paid. To protect its claim in the collateral, Show-Me should

a. personally contact TRI's other creditors.

b. file a financing statement with the appropriate state or local official.

c. send notice by mail to TRI's potential customers.

d. station a Show-Me employee on TRI's premises.

Excel Vehicles, Inc., makes and sells automobiles to auto dealers, including Fine Auto Sales. Fine sells the cars to consumers and businesses. Greg buys an Excel from Fine and buries it in the ground as a protest against air pollution. Considered a politically charged work of art, Greg's Excel is

a. a consumer good.

b. a fixture.

c. equipment.

d. inventory.

Qwik Credit Corporation lends $20,000 to Ross. A financing statement is filed on May 1, but the security agreement is not signed until Ross gets the money on May 4. Ross also borrows money from State Bank, which advances funds, files a financing statement, 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, Qwik Credit will

a. lose, because State Bank perfected first.

b. lose, because State Bank's interest attached first.

c. win, because Qwik Credit filed first.

d. win, because Qwik Credit's interest attached first

Delta Finance Company obtains a judgment against Evan for a debt and wishes the sheriff to seize and sell Evan's property. Delta must return to the court that issued the judgment and obtain a writ of

a. attachment.

b. contribution.

c. execution.

d. redemption.

Dina asks Edie to co-sign a credit application so that she can borrow money and buy a sport utility vehicle from Finest Quality Motors. If Edie signs the application only after...

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