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:

Direct Investment

The ownership of overseas facilities.

Exporting

The sale of goods and services to foreign markets.