David Is the Secured Party in a Secured Transaction with James,who

question 36

Multiple Choice

David is the secured party in a secured transaction with James,who is the debtor.The collateral is James's collection of baseball cards.David is in possession of the baseball cards.David leaves the cards on his kitchen table during a party and a guest spills beer on them and ruins them.David is 

• A) ​liable for breach of duty of reasonable care of collateral. 
• B) ​not liable for anything. 
• C) ​liable for one-third of the value of the baseball cards. 
• D) ​liable for one-half of the value of the baseball cards.

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Definitions:

Preferred Stock

is a type of stock that provides a specific dividend that is paid before any dividends are paid to common stock holders, and typically does not have voting rights.

Periodic Payments

Recurring payments made over a period of time, such as monthly mortgage or insurance payments.

Voting Rights

The rights of shareholders to vote on corporate matters, such as the election of the board of directors.

Supreme Court

The highest judicial court in a country or state, which has the ultimate authority to adjudicate disputes and interpret the law.