Exam 13: Negotiable Instruments, Credit, and Bankruptcy

Character refers to:

To deal with the increasingly international business scene, most countries have moved away from a "grab" theory of bankruptcy jurisdiction that gave control of assets to whichever bankruptcy court got control first to a(n) ____ approach.

Every year, creditors have to absorb ____ in unpaid debt:

Lisa goes to the local appliance store and buys an oven on credit. The store extends her credit. The store's security interest in the oven perfects when:

In order to establish a superior right, a creditor must:

In Summers Group v. Tempe Mechanical, Summers (Rexel) sold electrical materials used in a construction project that went into bankruptcy. Litigation developed over where various claimants stood to collect. The appeals court held that:

In Fordyce Bank v. Bean Timberland, where the bank had a security interest in proceeds from the sale of timber by Bean, the court held that the bank failed to secure its interest in the timber, so it had no claim upon default.

A business that extends credit to buyers should establish:

Under the UCC, a security interest for consumer goods is perfected:

The primary distinction in secured credit transaction is whether the property:

With a(n) ____ the security interest in any specific item of inventory ends when the item is sold, but attaches to new inventory.

If a debtor cannot meet credit obligations it is said:

A surety has the right to exoneration if the principal can pay her debt, but refuses to do so.

In a(n) ____, goods and services are sold on an invoice that shows transactions; full payment is expected within a fixed time period.

Which of the following is one of the UCC's requirements for an instrument to be negotiable:

With a(n) ____ the security interest in any specific item of inventory ends when the item is sold, but attaches to new inventory.

The mortgagee is the creditor who makes a mortgage.

To make a security interest subject to better enforcement, the creditor should make sure the interest is attached and perfected.

The ____ agrees to make the payment, such as the bank making a payment based on a document presented to it.

The only property that is typically exempt from attachment is personal property worth over $1,000.