Under which of the following circumstances would a promoter be relieved of personal liability on contracts entered into while engaged in forming a corporation?
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1 .Under the Secured Transactions Article of the UCC, which of the following security agreements does not need to be in writing to be enforceable?
A A security agreement where the collateral is highly perishable or subject to wide price fluctuations. B A security agreement collateralizing a debt of less than USD500. C A security agreement involving a purchase money security interest. D A security agreement where the collateral is in the posses...
2 .Under the Secured Transactions Article of the UCC, which of the following items can usually be excluded from a filed original financing statement?
A The amount of the obligation secured. B The name of the debtor. C The address of the debtor. D A description of the collateral.
3 .Lisa is a limited partner in a limited partnership. Jen, one of the other limited partners, is seeking to sell her interest in the partnership to Karen and allow Karen to become a new limited partner. Which of the following statements is true?
A Jen may withdraw from the limited partnership without giving notice to the partnership. B Jen may transfer her interest and make Karen a new limited partner without the approval of the other partners. C Lisa may engage in the management of the limited partnership without losing her limited liabili...
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5 .Which of the following transactions would illustrate a secured party perfecting its security interest by taking possession of the collateral?
A A pawnbroker lending money. B A consumer borrowing to buy a car. C A bank receiving a mortgage on real property. D A wholesaler borrowing to purchase inventory.
7 .Under the Secured Transactions Article of the UCC, which of the following purchasers will own consumer goods free of a perfected security interest in the goods?
A A merchant who purchases the goods for resale. B A merchant who purchases the goods for use in its business. C A consumer who purchases the goods in the ordinary course of business. D A consumer who purchases the goods from a consumer purchaser who gave the security interest.
8 .Taso Corp. sells laptop computers to the public. Taso sold and delivered a laptop to Cara on credit. Cara gave Taso a purchase money security interest in the laptop by executing and delivering to Taso a promissory note for the purchase price and a security agreement covering the laptop. Cara purchased the laptop for personal use. Taso did not file a financing statement. Under the Secured Transactions Article of the UCC, is Taso's security interest perfected?
A Yes, because it was perfected at the time of attachment. B No, because the laptop is a consumer good. C Yes, because Taso retained possession of the collateral. D No, because Taso failed to file a financing statement.
9 .Which of the following acts is most likely to cause a court to pierce the corporate veil?
A Retention of excess capital. B Using corporate assets for the owner's personal purposes. C Failure to designate a registered agent in the articles of incorporation (Charter). D Failure to conduct a significant portion of business in the chartering state.
10 .Second Best Buy, In, is a retailer of small appliances. Second Best Buy gives Chase Financial Corporation a security interest in the inventory owned by Second Best Buy, InC. Chase files a financing statement to perfect its interest. Who has higher priority in the collateral than Chase?
A The stockholders of Second Best Buy. B A subsequent lien creditor. C A buyer in the ordinary course of Second Best Buy's business. D A subsequent trustee in bankruptcy.
