[jeff]

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Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[MommyBear]

15-D

[Anonymous]

15 is D – Upon the debtor's default, the secured party has the choice to proceed under the Uniform Commercial Code by taking possession of the 70 cows, either peacefully or through judicial process. The secured party can then either sell or, without objection, keep the collateral in full satisfaction of the debt. Alternately, the secured party can proceed to file suit, receive a judgment and levy on the non-exempt property of the debtor.

[MommyBear]

Warranty of merchantibility is that the goods will do their intended purpose. It is implied with each sale and does not have to be said outloud or put in writing.

[Anonymous]

17–A voluntary petition filed under the liquidation provisions of Chapter 7 of the Federal Bankruptcy Code

A. Is not available to a corporation unless it has previously filed a petition under the reorganization provisions of Chapter 11 of the Federal Bankruptcy Code.

B. Automatically stays collection actions against the debtor except by secured creditors.

C. Will be dismissed unless the debtor has 12 or more unsecured creditors whose claims total at least $5,000.

D. Does not require the debtor to show that the debtor's liabilities exceed the fair market value of assets.

[WANNABE_CPA]

16. B?

FAR : 68, 74, 83 Thank you God 🙂
BEC : 78 (8/27) 🙂
REG : 72 ,80 (2/25) 🙂
AUD : 69,67, 07/23

[MommyBear]

16 is B. Good job! A buyer in the ordinary course of business from a merchant seller takes the property free of any security interest. Consequently, the refrigerators sold to both Zone and Cray will not be subject to the security interest.

[MommyBear]

18–Which of the following statements applies to a sale on approval under the U.C.C. Sales Article?

A.

Both the buyer and seller must be merchants.

B.

The buyer must be purchasing the goods for resale.

C.

Risk of loss for the goods passes to the buyer when the goods are accepted after the trial period.

D.

Title to the goods passes to the buyer on delivery of the goods to the buyer.

[WANNABE_CPA]

17.D ?

FAR : 68, 74, 83 Thank you God 🙂
BEC : 78 (8/27) 🙂
REG : 72 ,80 (2/25) 🙂
AUD : 69,67, 07/23

[MommyBear]

17-B

[Anonymous]

18 – B?

[Anonymous]

17 is D – This is balance sheet insolvency, and the debtor does not have to make such a showing. So long as the debtor is not abusing the bankruptcy relief laws, the debtor may file for Chapter 7 protection.

[WANNABE_CPA]

Confused about 18, C or D

FAR : 68, 74, 83 Thank you God 🙂
BEC : 78 (8/27) 🙂
REG : 72 ,80 (2/25) 🙂
AUD : 69,67, 07/23

[SullivanNJD]

18 -C

Sale on Approval – ROL remains with seller until goods are approved

FAR- 87
REG- 81
AUD- 88
BEC-

Who's Better Than Us? nobody

[MommyBear]

18 is C

“Sales on approval” under Article 2 of the U.C.C. allows the buyer a trial period in which to sample, temporarily use, and inspect the goods. Upon the passing of such trial period without return of the goods, the buyer takes title to the goods and assumes risk of loss.

There is no requirement that both the buyer and seller be a merchant or that the buyer must be purchasing the goods for resale. If the buyer is a merchant and holds the goods for resale (i.e., consignment), the transaction is a “sale or return” with different legal consequences.

[Anonymous]

Duh, that makes sense. RTMFQ

[Author]

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