Khalil Holds a Security Interest in Inventory Owned by Luc

question 5

Multiple Choice

Khalil holds a security interest in inventory owned by Luc. Khalil pro?tects his claim to the inventory in the event of Luc's default by

• A) assignment.
• B) perfection.
• C) redemption.
• D) retention.

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Definitions:

Plaintiff's Claim

A plaintiff's claim is a formal accusation or allegation made in a court by the plaintiff, starting legal proceedings against the defendant.

Tort

A legal wrong or infringement of a right leading to civil legal liability.

Nuisance

An act, condition, or thing that is considered an inconvenience or annoyance, and can sometimes give rise to a legal claim.

Bank's Carelessness

Negligent or inattentive actions by a banking institution that lead to loss or damage for a customer.