Character Evidence: When Allowed to Prove Propensity (Defendant's Character) - AN-
SWER Character evidence may be offered as circumstantial evidence to prove propensity
in certain limited circumstances:
-Defendant's Character: In criminal cases, a defendant may ALWAYS introduce evidence of
his own character. The prosecution is NOT allowed to present evidence of the defendant's
character to prove propensity UNLESS the defendant first presents evidence of his own char-
acter (defendant "opens the door").
Article 9 of the UCC Governs Secured Transactions - ANSWER Article 9 of the UCC gov-
erns any transaction regardless of its form that creates a security interest, including security
interests in personal property, consignments, a sale of accounts, chattel paper, and promis-
sory notes.
Attachment and Perfection - ANSWER Under UCC Article 9, a creditor may properly ob-
tain a security interest in collateral as a means to secure a loan given to a debtor. Enforcing a
security interest depends on two factors: (1) attachment; and (2) perfection.
Attachment secures the creditor's rights in the debtor's collateral, making the security inter-
est valid and enforceable against the debtor and third parties.
Perfection gives notice of the creditor's rights in the collateral to other parties who may have
claims to the same, and usually determines which party has priority to the collateral.
A security interest cannot be perfected unless it has first attached.
1
,Attachment - ANSWER Attachment requires: (1) that the creditor extend value to the
debtor; (2) the debtor must have rights in the collateral; and (3) one of the following:
(a) an authenticated record/security agreement memorializing the security interest that:
(i) reasonably identifies the collateral
(ii) be authenticated by the debtor
(b) the collateral is in the secured party's possession pursuant to a security agreement;
OR
(c) the secured party has control of certain types of collateral (deposit accounts, etc.) pursu-
ant to a security agreement
Perfection - ANSWER Typically, perfection is obtained by the creditor filing a financing
statement with the Secretary of State that identifies the collateral and his security interest in
it. Perfection may also be obtained by taking possession or control of certain types of collat-
eral. Consumer PMSIs are automatically perfected.
Multiple Hearsay - ANSWER When evidence contains hearsay within hearsay, each level
of hearsay must fall within an exception to be admissible.
Hearsay - ANSWER Hearsay is an out-of-court statement that is offered to prove the truth
of the matter asserted. Hearsay is only admissible if it falls under an exception. A "state-
ment" means a person's oral assertion, written assertion, or non-verbal conduct, if the per-
son intended it as an assertion.
Non-Hearsay - ANSWER If an out of court statement is offered to prove something other
than the truth of the statement, it is non-hearsay and is admissible.
2
, Common non-hearsay statements include: (1) verbal acts of independent legal significance;
(2) statements offered to show the effect on the listener; (3) a prior inconsistent statement
used to impeach; and (4) circumstantial evidence of the speaker's state of mind.
Priority: Perfected Interest vs. Unperfected Interest - ANSWER A perfected security inter-
est has priority over a conflicting unperfected security interest in the same collateral.
A creditor's prior knowledge of an unperfected security interest is irrelevant to determine
priority.
Priority: Unperfected Interest vs. Unperfected Interest - ANSWER When there are two
competing unperfected security interests, the "first in time, first in right" rule controls, and
the first to attach will prevail.
Priority: Perfected Interest vs. Perfected Interest - ANSWER When there are two or more
perfected secured parties with rights in the same collateral, the first to file or perfect its se-
curity interest has priority. If both security interests are perfected, then priority dates from
the time of filing or perfection, whichever occurs first.
PMSI vs. Non-PMSI - ANSWER A PMSI in consumer goods enjoys automatic perfection,
meaning the creditor doesn't need to file a financing statement to perfect the interest. As
such, a PMSI in consumer goods takes priority over another perfected or unperfected inter-
est. For PMSIs in non-consumer goods, a financing statement must be filed in order to per-
fect the interest; otherwise, the security interest is unperfected.
UCC Article 2 Governs Contracts for the Sale of Goods - ANSWER Article 2 of the UCC gov-
erns all contracts for the sale of goods. Goods are defined as all things that are movable at
the time of identification to the contract. Under the UCC, Common Law principles continue
to apply, unless the UCC specifically displaces them.
A contract for the same of goods may be made in any manner sufficient to show agreement,
including conduct by both parties which recognizes the existence of such a contract.
3
SWER Character evidence may be offered as circumstantial evidence to prove propensity
in certain limited circumstances:
-Defendant's Character: In criminal cases, a defendant may ALWAYS introduce evidence of
his own character. The prosecution is NOT allowed to present evidence of the defendant's
character to prove propensity UNLESS the defendant first presents evidence of his own char-
acter (defendant "opens the door").
Article 9 of the UCC Governs Secured Transactions - ANSWER Article 9 of the UCC gov-
erns any transaction regardless of its form that creates a security interest, including security
interests in personal property, consignments, a sale of accounts, chattel paper, and promis-
sory notes.
Attachment and Perfection - ANSWER Under UCC Article 9, a creditor may properly ob-
tain a security interest in collateral as a means to secure a loan given to a debtor. Enforcing a
security interest depends on two factors: (1) attachment; and (2) perfection.
Attachment secures the creditor's rights in the debtor's collateral, making the security inter-
est valid and enforceable against the debtor and third parties.
Perfection gives notice of the creditor's rights in the collateral to other parties who may have
claims to the same, and usually determines which party has priority to the collateral.
A security interest cannot be perfected unless it has first attached.
1
,Attachment - ANSWER Attachment requires: (1) that the creditor extend value to the
debtor; (2) the debtor must have rights in the collateral; and (3) one of the following:
(a) an authenticated record/security agreement memorializing the security interest that:
(i) reasonably identifies the collateral
(ii) be authenticated by the debtor
(b) the collateral is in the secured party's possession pursuant to a security agreement;
OR
(c) the secured party has control of certain types of collateral (deposit accounts, etc.) pursu-
ant to a security agreement
Perfection - ANSWER Typically, perfection is obtained by the creditor filing a financing
statement with the Secretary of State that identifies the collateral and his security interest in
it. Perfection may also be obtained by taking possession or control of certain types of collat-
eral. Consumer PMSIs are automatically perfected.
Multiple Hearsay - ANSWER When evidence contains hearsay within hearsay, each level
of hearsay must fall within an exception to be admissible.
Hearsay - ANSWER Hearsay is an out-of-court statement that is offered to prove the truth
of the matter asserted. Hearsay is only admissible if it falls under an exception. A "state-
ment" means a person's oral assertion, written assertion, or non-verbal conduct, if the per-
son intended it as an assertion.
Non-Hearsay - ANSWER If an out of court statement is offered to prove something other
than the truth of the statement, it is non-hearsay and is admissible.
2
, Common non-hearsay statements include: (1) verbal acts of independent legal significance;
(2) statements offered to show the effect on the listener; (3) a prior inconsistent statement
used to impeach; and (4) circumstantial evidence of the speaker's state of mind.
Priority: Perfected Interest vs. Unperfected Interest - ANSWER A perfected security inter-
est has priority over a conflicting unperfected security interest in the same collateral.
A creditor's prior knowledge of an unperfected security interest is irrelevant to determine
priority.
Priority: Unperfected Interest vs. Unperfected Interest - ANSWER When there are two
competing unperfected security interests, the "first in time, first in right" rule controls, and
the first to attach will prevail.
Priority: Perfected Interest vs. Perfected Interest - ANSWER When there are two or more
perfected secured parties with rights in the same collateral, the first to file or perfect its se-
curity interest has priority. If both security interests are perfected, then priority dates from
the time of filing or perfection, whichever occurs first.
PMSI vs. Non-PMSI - ANSWER A PMSI in consumer goods enjoys automatic perfection,
meaning the creditor doesn't need to file a financing statement to perfect the interest. As
such, a PMSI in consumer goods takes priority over another perfected or unperfected inter-
est. For PMSIs in non-consumer goods, a financing statement must be filed in order to per-
fect the interest; otherwise, the security interest is unperfected.
UCC Article 2 Governs Contracts for the Sale of Goods - ANSWER Article 2 of the UCC gov-
erns all contracts for the sale of goods. Goods are defined as all things that are movable at
the time of identification to the contract. Under the UCC, Common Law principles continue
to apply, unless the UCC specifically displaces them.
A contract for the same of goods may be made in any manner sufficient to show agreement,
including conduct by both parties which recognizes the existence of such a contract.
3
