1. Which of the following is considered a negotiable instrument?

A) a receipt for sale of goods

B) a promissory note evidencing a student loan

C) a BLAW 330 QUIZ

D) a certificate of no fault insurance

2. Amelia purchases a motorcycle from Prime Cycle for $10,000. Amelia is able to pay $3,000 of the purchase price out of pocket, but signs a loan agreement with Prime Cycle for the remaining balance of $7,000. Prime Cycle retains an interest in the motorcycle in the amount of $7,000 and identifies itself on the vehicle title recorded with the Secretary of State. Prime Cycle has

A) bailment

B) bill of lading

C) a perfected security interest

D) warehouse receipt

3. Jayce purchases $50,000 of industrial welding equipment from FabCorp. Jayce pays $25,000 cash for the equipment, but signs a loan document for the remaining balance of $25,000 (plus interest) indicating he will pay $1,000.00 per month to FabCorp until the balance is paid in full. FabCorp properly records UCC financing statements with the proper county records office. Jayce makes his monthly payments faithfully, but fails to add the industrial welding equipment to his property insurance policy. On these facts, which of the following conclusions is likely

A) Jayce has consigned the collateral to FabCorp.

B) Jayce may be in default for failing to maintain insurance on the collateral if it was a condition required by FabCorp.

C) Jayce cannot be considered in default so long as his monthly payments to FabCorp are current.

D) Jayce has a perfected security interest in the collateral.