11. Terri Aki perfected a security agreement by filing a financing statement. How long does the security interest last before it becomes ineffective? (a) Six months (b) Five years (c) Six years (d) Five years, unless the debtor changes his place of residence, place of business, or the location of the collateral changes. If any of these events occur, a continuation statement must be filed within six months after such change 12. Ervin Zimmerman is a Kansas corn farmer. Ervin's primary financier of his farming operation is the First State Bank of Agra, Kansas. Ervin planted a corn crop in the spring of 2017 after receiving a loan from First State Bank which allowed Ervin to acquire the necessary inputs to produce the crop. First State Bank took a security interest in Ervin's corn crop as collateral for the loan. Accordingly, First State Bank asked Ervin for a list of potential buyers of the corn crop, and Ervin provided such a list. Named on the list was the Webster County Co-op. First State Bank gave notice to the Co-op of the bank's perfected security interest in Ervin's farm products and their proceeds. In 2017, the co-op purchased Ervin's harvested corn crop and applied the proceeds of the sales to the payment of Ervin's indebtedness to the Co-op but did not make any payment to the bank. The bank's notices to the Co-op did not contain a legal description of the land on which Ervin's corn crop was growing. The bank sued the Coop for the proceeds of the farm products sold by Ervin to the Co-op. Will the bank win? (a) Yes, if the description of the collateral is "reasonable." Revised Article 9 does not require a legal description of the land on which crops pledged as collateral are grown. (b) No, because the bank's security interest failed to adequate describe the real estate on which Ervin's crop was growing. (c) Yes, under the farm products rule, a buyer in the ordinary course of farm products does not take free of a prior perfected security interest in the crops. (d) No, under the farm products rule, a buyer in the ordinary course of farm products takes free of a prior perfected security interest in the goods, and the bank failed to strictly follow the direct notice rules of the farm products law in Kansas. Daryl has farmed for the past 40 years in Brown County, Kansas. Over that period of time, Daryl has collected numerous items of farm property. Daryl and his wife, Rose, have recently made the decision to retire from the farming business and move into town. To facilitate the move, Daryl and Rose have decided to conduct an auction of many of the items of farm property that they no longer need. An auctioneer is hired and the auction is held on a Saturday in July. Auction notices have been posted in all of the local rural communities, as well as in the county newspaper, the Tama County Inquirer. On the day of the sale, many persons show up at the auction site located in Daryl and Rose's barnyard. The first item up for bid is a 1953 International Harvester tractor, which Daryl has maintained in excellent condition over the years and is now classified as a valuable collector's item worth at least $30,000. The bidding on the tractor begins at $15,000 and only one individual, Gullable Glen, makes a bid. The auctioneer's hammer falls in acceptance of Glen's bid. Daryl, unsatisfied at the extent of the bidding on his valuable antique tractor, notifies the auctioneer to reject Glen's bid and withdraw the tractor from sale. Glen, however, insists that his $15,000 bid must be accepted since he was the highest bidder on the tractor and the auctioneer's hammer fell even though he made the only bid. Which of the following statements is correct? (a) The tractor belongs to Glen because he made the highest bid and neither Daryl nor the auctioneer has the right to withdraw the tractor from the bidding. (b) Glen's bid must be accepted by the auctioneer since, under the UCC, all auctions are presumed to be "without reserve". (c) Glen may not own the tractor because even though his bid was the highest, and the auctioneer's hammer fell, the seller retains the right to later reject Glen's bid if the seller determines that it is too low and it is the customary practice to not recognize a completed sale if only one person bids on item. (d) Daryl has a right to withdraw the tractor from sale because offering the tractor for sale at an auction only constitutes an invitation to make an offer and is not an offer which Glen can accept by bidding