Trevor Goes to the AutoShop and Purchases a New Truck

question 47

Multiple Choice

Trevor goes to the AutoShop and purchases a new truck on credit for his business.He signs an agreement with AutoShop under which the truck is the collateral for AutoShop's loan to him.Trevor then goes to First Bank and signs an agreement for a loan so that he can buy supplies for his business.Do either of these agreements involve a purchase-money security interest?

• A)The agreement with First Bank is a purchase-money security interest.
• B)Both agreements are a purchase-money security interest.
• C)Neither of the agreements involved a purchase-money security interest.
• D)The agreement with AutoShop is a primary purchase-money security interest and the agreement with First Bank is a secondary purchase-money security interest.
• E)The agreement with AutoShop is a purchase-money security interest.

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Definitions:

Mini-trial

A voluntary, private, informal dispute resolution process where each party to a dispute presents a summarized version of its case to a panel, often as a prelude to other negotiations.

Binding Mediation

A form of ADR in which a mediator attempts to facilitate agreement between the parties but then issues a legally binding decision if no agreement is reached.

Early Neutral

An alternative dispute resolution process where neutral evaluation is provided by an expert early in the case to help parties reach a settlement.

Uniform Arbitration Act

A framework of laws intended to provide a consistent approach to arbitration across different jurisdictions, facilitating easier dispute resolution.