Nick Bought a Diamond Ring on Credit from Rike as an Engagement

question 24

Essay

Nick bought a diamond ring on credit from Rike as an engagement present for his fiancée.He signed a purchase money security agreement giving Rike a security interest in the ring until it was paid for.Rike did not file a financing statement covering its security interest.Nick filed for bankruptcy.The bankruptcy trustee claimed that the diamond ring was part of the bankruptcy estate because Rike did not perfect his security interest.Rike claimed that it had a perfected security interest in the ring.Did Rike have to file a financing statement to perfect its security interest in the diamond ring?

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Definitions:

World Price

The global market price of a good or service, determined by supply and demand in the international marketplace.

No-Trade Policy

A policy or stance that restricts or prohibits trading certain goods, services, or information between countries or jurisdictions.

Free-Trade Policy

A policy approach that encourages international trade by minimizing or eliminating tariffs, quotas, and other trade barriers between countries.

World Price

The international market price of a good or service, influenced by global supply and demand factors.