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Questions and Answers
What is one benefit of taking a security interest?
What is one benefit of taking a security interest?
- To eliminate the need for multiple filing requirements
- To reduce the likelihood of bankruptcy filings
- To make it easier for the sales department to sell to companies that do not meet credit standards (correct)
- To increase the cost of credit for debtors
What is a possible defense against a preference attack in the event of a bankruptcy filing?
What is a possible defense against a preference attack in the event of a bankruptcy filing?
- Multiple filing requirements
- Elimination of costs
- Lowered credit standards
- A security interest (correct)
What is an example of how taking a security interest can benefit a creditor?
What is an example of how taking a security interest can benefit a creditor?
- Refusing to sell to companies that do not meet credit standards
- Requiring multiple filing requirements
- Charging higher interest rates to debtors
- Offering a higher credit line to a debtor who agrees to a security interest (correct)
Taking the five steps mentioned in the text can help maximize existing interests.
Taking the five steps mentioned in the text can help maximize existing interests.
The identification number mentioned in step 2 is the same as the debtor's tax identification number.
The identification number mentioned in step 2 is the same as the debtor's tax identification number.
It is not necessary to file UCCs in any states where a new filing is required to perfect the security interest.
It is not necessary to file UCCs in any states where a new filing is required to perfect the security interest.
The Robinson-Patman Act deals with price discrimination between different classes of customers
The Robinson-Patman Act deals with price discrimination between different classes of customers
Discounts offered to one customer must also be offered to all customers in the same class
Discounts offered to one customer must also be offered to all customers in the same class
The penalties for violating Robinson-Patman include imprisonment
The penalties for violating Robinson-Patman include imprisonment
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