Denis Bought a Diamond Ring on Credit from Pavel as an Engagement

question 18

Essay

Denis bought a diamond ring on credit from Pavel as an engagement present for his fiancée. He signed a purchase money security agreement giving Pavel a security interest in the ring until it was paid for. Pavel did not file a financing statement covering its security interest. Denis filed for bankruptcy. The bankruptcy trustee claimed that the diamond ring was part of the bankruptcy estate because Pavel did not perfect his security interest. Pavel claimed that it had a perfected security interest in the ring. Did Pavel have to file a financing statement to perfect its security interest in the diamond ring?

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Definitions:

Neural Impulses

Electrical signals that travel along neurons, transmitting information throughout the nervous system.

Wavelengths

The distances between successive crests of a wave, typically used in the physics of light and sound.

Red

A color at the end of the visible spectrum of light, next to orange and opposite violet, with a dominant wavelength of approximately 620-740 nanometers.

Sensory Adaptation

The process in which sensory receptors grow accustomed to constant, unchanging levels of stimuli over time.