Darrel, Smith, Keith, and Aaron Are Claimants to a Collateral

question 49

Multiple Choice

Darrel, Smith, Keith, and Aaron are claimants to a collateral interest. Smith and Darrel secure their interests. Aaron takes physical possession of the collateral. Keith files a financing statement some time later. Who among the four will have highest priority of claim to the collateral?

• A) Darrel
• B) Smith
• C) Keith
• D) Aaron

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Definitions:

Situated Cognition

A belief that one’s culture and one’s everyday surroundings and tasks set both boundaries and possibilities for the cognitive tasks that are practiced, and therefore strengthened, during the normal course of daily living.

Flexibility

The capacity to adapt thoughts and behaviors in response to changing circumstances or new information.

White-collar Workers

Employees who perform professional, managerial, or administrative work, typically in an office or other administrative setting, as opposed to manual labor.