Fact Pattern 30-1B (Questions B15-B16 Apply)

question 41

Multiple Choice

Fact Pattern 30-1B (Questions B15-B16 apply)
Resource Drilling Company buys equipment for use in its operations, borrow?ing $1 million from Security Finance Corporation for a security in?terest in the equipment. The next day, Resource Drilling borrows $500,000 from Touchstone Loans, also for a security interest in the equipment. Resource Drilling defaults on both loans.
-Refer to Fact Pattern 30-1B. Suppose that Security Finance perfects its se?curity in?ter?est when Resource Drilling takes possession of the equipment. In that cir?cum?stance, the party with pri?ority to the collateral on Resource Drilling's default would be

• A) Resource Drilling.
• B) Security Finance and Touchstone Loans proportionately.
• C) Security Finance only.
• D) Touchstone Loans only.

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Definitions:

MRC Curve

The Marginal Resource Cost curve, representing the additional cost incurred by employing one more unit of a resource in production.

Monopsonist's Wage Cost

The cost to a monopsonist (a single buyer in a market) of paying for labor, influenced by their power to set wages due to lack of competition.

Additional Worker

A term used in economics and human resources referring to an extra employee hired to meet increased workload or production demands.

Exclusive Unionism

A labor policy in which a union negotiates that only union members can be hired by the employer.