Which of the Following Is True of the Rule of Priorities

question 42

Multiple Choice

Which of the following is true of the rule of priorities regarding the disposal of a debtor's property when the debtor defaults?

• A) Persons who become lien creditors before or after the security interest is perfected win.
• B) If the security interest was perfected at the time of filing for bankruptcy, the bankruptcy trustee can take the collateral.
• C) The Bankruptcy Act provides that a bankruptcy trustee can avoid a transfer of an interest of the debtor in property to or for the benefit of a creditor.
• D) A perfected purchase-money security interest in goods other than inventory or livestock has priority over a conflicting security interest in the same goods.
• E) A mortgage has priority over a perfected security in fixtures, even if the security interest is a purchase-money security interest.

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Definitions:

Horizontal Restraint

A type of anti-competitive practice that occurs between businesses at the same level of the supply chain, such as agreements between competitors to fix prices or divide markets.

Market Extension Merger

A merger between companies in similar industries but different markets, aimed at expanding the market reach of products or services.

Federal Trade Commission

An independent agency of the United States government tasked with promoting consumer protection and eliminating and preventing anticompetitive business practices.

Antitrust Claims

Legal allegations related to the violation of antitrust laws, aiming to promote competition and protect consumers from monopolistic practices.