MHR 461 Ch13 Secured Transactions Test
A buyer in the ordinary course of business takes collateral free of a perfected security
interest created by the buyer's seller. - ANSWER True
A buyer of goods who buys without knowledge of a security interest, for value, and
primarily for personal, family, or household purposes takes the goods: - ANSWER free of
any purchase money security interest automatically perfected.
A debtor must sign a written security agreement for a pledge used to secure a loan. -
ANSWER False
"Attachment" occurs when a secured party has given value, the debtor acquires rights
in the collateral, and the: - ANSWER debtor and secured party have an agreement.
An automobile buyer in the ordinary course of business will take free and clear of a
security interest created by the buyer's seller. - ANSWER True
A perfected security interest has priority over: - ANSWER both an inperfected security
interest and a lien creditor who acquires a lien after perfection.
Article 9 applies to secured transactions in both real and personal property. - ANSWER
False
As a general rule, for purposes of attachment of a security interest, a debtor is deemed
to have rights in collateral that she: - ANSWER owns.
has in her possession.
is in the process of acquiring from a seller.
Correct Answer All of these.
A buyer in the ordinary course of business takes collateral free of a perfected security
interest created by the buyer's seller. - ANSWER True
A buyer of goods who buys without knowledge of a security interest, for value, and
primarily for personal, family, or household purposes takes the goods: - ANSWER free of
any purchase money security interest automatically perfected.
A debtor must sign a written security agreement for a pledge used to secure a loan. -
ANSWER False
"Attachment" occurs when a secured party has given value, the debtor acquires rights
in the collateral, and the: - ANSWER debtor and secured party have an agreement.
An automobile buyer in the ordinary course of business will take free and clear of a
security interest created by the buyer's seller. - ANSWER True
A perfected security interest has priority over: - ANSWER both an inperfected security
interest and a lien creditor who acquires a lien after perfection.
Article 9 applies to secured transactions in both real and personal property. - ANSWER
False
As a general rule, for purposes of attachment of a security interest, a debtor is deemed
to have rights in collateral that she: - ANSWER owns.
has in her possession.
is in the process of acquiring from a seller.
Correct Answer All of these.
