If Michael,ABC Electronics,and XYZ Credit Have a Dispute Regarding Entitlement

question 24

Multiple Choice

If Michael,ABC Electronics,and XYZ Credit have a dispute regarding entitlement to the television,who is likely to win and why?

• A)XYZ Credit will prevail because although ABC Electronics had a perfected security interest,it did not file a financing statement.
• B)ABC Electronics will prevail because,as a seller of consumer goods,it did not need a perfected security interest in order to prevail against other creditors.
• C)ABC Electronics will prevail because it had a perfected security interest.
• D)XYZ Credit will prevail because it had a perfected security interest in a greater amount of goods than did ABC Electronics.
• E)XYZ Credit will prevail because a luxury good was involved and,although ABC Electronics had a perfected security interest,it did not file a financing statement as required within 10 days of the sale.

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Definitions:

Liable

Legally responsible or obligated to make amends for a loss or damage.

Constructive Discharge

A termination of employment brought about by making the employee’s working conditions so intolerable that the employee reasonably feels compelled to leave.

Unconventional Act

An action that deviates from the norm or goes against traditional practices or standards.

Hijab

A headscarf worn by many Muslim women that covers the head and chest, traditionally signifying modesty, privacy, and morality.