When a State Statute Requires a Security Interest in a Motor

question 51

Multiple Choice

When a state statute requires a security interest in a motor vehicle to be noted on the certificate of title, the security interest is perfected:

• A) by the certificate notation, when a non-inventory motor vehicle is involved.
• B) by filing under the UCC, regardless of how the vehicle is classified.
• C) by filing under the UCC, when the motor vehicle is inventory.
• D) either by the certificate notation or by a UCC filing, depending on how the state statute defines the term motor vehicle.

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Definitions:

Duty of Care

Duty of care is a legal obligation that requires individuals or organizations to adhere to a standard of reasonable care while performing acts that could foreseeably harm others.

Financial Statements

Documents that report the financial activities and condition of a business or entity, including the balance sheet, income statement, and cash flow statement.

Land Title

A legal document or evidence that proves ownership of a piece of land.

Solicitor-Client Privilege

A legal principle that protects the confidentiality of communications between lawyers and their clients.