Jo Purchases a Car from Used-Carz and Signs a Security

question 28

Multiple Choice

Jo purchases a car from Used-Carz and signs a security agreement that identifies Jo's "blue car" as the collateral. If Jo is unable to make payments, how likely would Used-Carz be in a suit to recover the collateral if Jo defaults on her payments?

• A) Very likely because Jo's car is identified as collateral.
• B) Unlikely, because the collateral is not clearly described in the written agreement.
• C) Very likely, because, although the collateral is not clearly described in the written agreement, creditors cannot lose rights to collateral.
• D) Very likely, because collateral need not be identified in a security agreement.
• E) Unlikely, because Used-Carz must first attempt to repossess the car.

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Definitions:

External Auditory Meatus

The external auditory meatus is the ear canal, a tube running from the outer ear to the middle ear, allowing sound to enter the ear for hearing.

Tympanic Membrane

A thin membrane that separates the outer ear from the middle ear, also known as the eardrum, and vibrates in response to sound waves.

Auditory Tube

A tube connecting the middle ear to the nasopharynx, helping equalize pressure in the ear.

Pinna

The visible part of the ear that is outside the head, involved in directing sound into the ear canal.