Which of the Following Is True About Perfection of Purchase

question 96

Multiple Choice

Which of the following is true about perfection of purchase money security interests?

• A) They perfect automatically, for any type of goods, upon attachment.
• B) For something other than inventory, a perfected purchase money security interest prevails over a perfected nonpurchase money security interest in after-acquired property if it is perfected when the debtor receives possession or with twenty days after the debtor receives possession of the collateral.
• C) There is no special treatment for purchase money security interests in inventory.
• D) For consumer goods, any purchase money security interest in them perfects without attachment.
• E) The perfected purchase money security interest prevails if the purchase money secured party gives written notice of the perfection to the perfected nonpurchase money secured party before the debtor receives possession of the collateral.

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Definitions:

Section 11

refers to a specific part or provision within a document, agreement, or law that outlines rights, responsibilities, or regulations.

Securities Act of 1933

The Securities Act of 1933 is a U.S. law enacted to regulate the sale of securities, aimed at providing investors with transparent financial information.

Scienter

A legal term referring to the knowledge or intent to deceive, defraud, or manipulate in violation of the law.

Reliance

The act of depending or trusting in something or someone, often used in legal contexts regarding the belief in the truth or certainty of an event or statement.