Joan Borrows Money from Jake Under a Security Agreement

question 21

Multiple Choice

Joan borrows money from Jake under a security agreement. After borrowing the money, Joan buys a new kayak. The kayak is considered

• A) a floating lien.
• B) after-acquired property.
• C) a future advance.
• D) proceeds.

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Definitions:

Substantial Evidence Test

A legal principle that a decision must be supported by sufficient evidence that a reasonable person could accept as adequate to support a conclusion.

Proof Beyond A Reasonable Doubt

The highest standard of proof required in criminal trials, ensuring that there is no reasonable alternative to the conclusion that the defendant is guilty.

Rational Basis

A standard of judicial review that requires laws or actions to be reasonably related to a legitimate governmental interest.

Administrative Procedures Act

A federal statute that governs the way administrative agencies of the U.S. government may propose and establish regulations, ensuring public participation and transparency.