Which of the Following Best Describes Why Personal Property Security

question 6

Multiple Choice

Which of the following best describes why personal property security legislation requires that a secured party in possession of collateral act in a commercially reasonable way when disposing of it?

• A) Commercially reasonable behaviour is what parties expect in the marketplace.
• B) If there were no legal requirement, secured parties are likely to act in a way which is unreasonable.
• C) Secured parties are not in the business of disposing of the assets of their debtors and so need guidance as to how to do it.
• D) Secured parties are only interested in getting paid what they are owed plus their expenses associated with disposing of the collateral, not in obtaining the best price for the collateral.
• E) Secured parties must dispose of the collateral quickly to avoid having to pay others with claims against the debtor and so may not act in a commercially reasonable manner.

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Definitions:

Sex Hormones

A group of hormones, such as estrogen, progesterone, and testosterone, that play critical roles in sexual development and reproduction.

Sexually Transmitted

Describes infections that are primarily spread through sexual contact.

Immune System

The body's defense mechanism against pathogens, including viruses, bacteria, and other agents that can cause disease.

AIDS

Acquired Immune Deficiency Syndrome, a life-threatening condition caused by the human immunodeficiency virus (HIV), which severely damages the immune system.