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:

Expected Value

A calculated average of the possible outcomes of a variable, taking into account the likelihood of each outcome.

Fair Insurance Policy

An insurance agreement that is considered equitable and just, providing a balanced distribution of risks and benefits for both insurer and insured.

Medical Expenses

Costs incurred by individuals for healthcare services, treatments, and medication.

Premium

The amount paid for an insurance policy or an additional cost for receiving better service or goods.