Question

A ________ is a sales transaction arranged by the seller to benefit a buyer who pays an unreasonably low price for the item sold.

QUESTION 1 A ________ is a sales transaction arranged by the seller to benefit a buyer who pays an unreasonably low price for the item sold. Fraud in the inducement. Blue Sky transfer. Sale under duress. Sham sale.

QUESTION 2

1. ________ of a security interest provides protection to secured parties from third parties who may later make claims against the secured collateral.

   		Establishment.
   		Enforcement.
   		Attachment.
   		Perfection.

QUESTION 3

1. Which of the following is not a benefit of a PMSI?

   		A PMSI in consumer good is automatically perfected.
   		A PMSI creditor in consumer goods can keep the goods in strict foreclosure over the objections of the debtor.
   		A later creditor with in PMSI in inventory can get priority over an earlier creditor with a floating lien in the inventory if proper procedures are followed.
   		A later creditor with a PMSI in non-inventory can get priority over an earlier non-PMSI creditor in the same collateral if proper procedures are followed.

QUESTION 4

1. If a foreclosure sale is commercially reasonable but does not produce enough to satisfy the debtor's debts, the _______ is liable for any deficiency.

   		Debtor.
   		Creditor.
   		Bank.
   		Federal Government.

QUESTION 5

1. Whatever is received when collateral is sold, exchanged, collected or otherwise disposed of is known as the _________.

   		Proceeds.
   		Acquisition costs.
   		Purchase money.
   		Future advance.

Answer 1

Answer 1. The correct answer is 'Sham Sale'. Sham sale is a transaction between a buyer and a seller in which the buyer will purchase the particular item at unreasonably low price. Such kind of transactions usually occurs to facilitate the seller.

Answer 2. The correct answer is 'Perfection'. The perfection of a security interest aims to provide protection to secured parties like creditors from third parties who in the future may claim a right on the secured collateral.

Answer3. The correct answer is 'A later creditor with a PMSI in non-inventory can get priority over an earlier non- PMSI creditor in the same collateral if proper procedures are followed'.

Answer4. The correct answer is 'Debtor'. As per article 9 of foreclosure and deficiency, is any amount received from foreclosure sale is not enough to meet the debtor's debts than the debtor is liable for rest of the amount or deficiency.

Answer 5. The correct answer is 'Proceeds'. 'Proceeds' is the term used when a sale, collection,exchange is made of any collateral which were given by the debtor to the creditor.