A Perfected Purchase Money Security Interest in Inventory Is Likely

question 49

Multiple Choice

A perfected purchase money security interest in inventory is likely to have priority over a conflicting security interest in the same inventory if the:

• A) purchase money security interest is perfected three months after the debtor receives possession of the inventory.
• B) purchase money secured party gives an oral notification to the prior secured creditor before the debtor receives the inventory.
• C) holder of the competing security interest received notification within eight years before the debtor receives the inventory.
• D) notification states that the person expects to acquire a purchase money security interest in inventory of the debtor and describes the inventory.

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Definitions:

Touch Screen

A type of monitor (or display in a smartphone or tablet computer) that accepts input from a user touching the screen.

Embedded Computers

Special-purpose computers embedded within electronic devices, meant to control its functions and operations.

Computer Chips

Small electronic circuits used in computers and other devices, containing millions of microscopic transistors, to perform calculations and store data.

Devices

Electronic gadgets or machines designed for a specific purpose, such as smartphones, computers, or sensors.