Which One of the Following Statements About the Personal Property

question 109

Multiple Choice

Which one of the following statements about the Personal Property Security Act is true?

• A) In a situation where a debtor fraudulently attempts to transfer property that he has given as security, the Act is designed to protect both the debtor and secured creditor.
• B) This legislation applies only to all present transactions where personal property is given as security interest to enforce an obligation.
• C) If a secured creditor fails to register his security interest in the Personal Property Registry, he loses his rights against the debtor.
• D) Unless a creditor in a secured transaction covered by this Act takes steps to "attach and perfect" his security interest, he could lose that interest to someone outside the contract.
• E) If someone suspects that an item of personal property has been given as security by a particular person, he can sue on the breach of a condition.

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Definitions:

Celler-Kefauver Act

A U.S. law enacted in 1950 aimed at preventing anti-competitive mergers and acquisitions that could lead to decreased competition.

Civil Aeronautics Board

A former federal agency in the United States responsible for regulating the air transport industry until its deregulation in the early 1980s.

Sherman Act

An 1890 United States antitrust law that outlaws monopolistic practices and promotes competition.

Price-fixing

An illegal agreement among competitors to set prices at a certain level, rather than competing naturally in the market.