Should a Business Fail After Receiving Shipping Documents from Its

question 66

Multiple Choice

Should a business fail after receiving shipping documents from its bank on the basis of a trust receipt, the bank

• A) becomes a preferred creditor to the extent of the amount due less cash deposits with the bank.
• B) repossesses the merchandise on the basis of a specific lien thereon.
• C) repossesses the merchandise on the basis of its holding of title to the merchandise.
• D) has a prior claim relative to other general creditors.

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Definitions:

Tiryns

An ancient city in Greece known for its archaeological site, particularly its palace and cyclopean walls from the Mycenaean period.

Ashlar Masonry

A type of stone construction using finely dressed stones with uniform shapes and sizes, tightly fitted without mortar.

Middle Minoan Period

A phase in the Minoan civilization of ancient Crete, noted for significant developments in art, architecture, and societal organization, circa 2000-1600 BCE.

Palatial Complex

A grand and expansive set of buildings used as the residence of a sovereign or noble, often comprising various wings and courtyards.