Wedney,Inc

question 16

Multiple Choice

Wedney,Inc.sold a meat processing machine to Yoro Chickens,taking a security interest in the machine.Yoro Chickens defaulted on the loan.Wedney repossessed the machine.Wedney would like to retain the machine to use as a model.Which of the following statements is correct?

• A)Wedney must notify the debtor that it intends to retain the machine and give Yoro 20 days to object.
• B)By taking possession,Wedney automatically foreclosed on the collateral.Wedney has valid title and need do nothing else.
• C)Since the machine is equipment,Wedney cannot retain the machine.Wedney must dispose of the collateral in a commercially reasonable manner.
• D)Wedney can retain the machine but must pay Yoro the surplus,the difference between the fair market value of the machine and the amount of the debt.

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Definitions:

News Release

An official statement issued to newspapers, magazines, and other media for the purpose of providing information, an announcement, or making an official statement.

Customary Pattern

Established or habitual methods of behavior or operations typical within a particular context or environment.

Fair Adjustment

A reasonable modification or change made to rectify or balance a situation.

Straightforward Statement

A clear and unambiguous expression or declaration that is easy to understand and interpret.