17- According to the Uniform Commercial Code (UCC) classifications of collateral, general intangibles include __________.

Multiple Choice

• patents, copyrights, software, and franchises
• stocks, bonds, and commodity contracts
• checks, notes, drafts, and certificates of deposit
• bills of lading, dock warrants, dock receipts, and warehouse receipts

18- Which of the following regarding the distribution of the debtor's estate is incorrect?

Multiple Choice

• Priority claims are paid after secured creditors realize on their collateral.
• Each class must be paid in full before the next class is entitled to receive anything.
• Payments are made to the ten (10) priority classes, in order, to the extent there are funds available.
• To the extent there are insufficient funds to satisfy all the creditors within a class, each class member receives an equal share of his claim.

19- What is the liability faced by an insurer if it breaches its policy obligations by means of a good faith but erroneous denial of coverage?

Multiple Choice

• Compensatory damages
• Punitive damages
• Special damages
• Liquidated damages

22- Most commercial contracts and promissory notes today that are signed by multiple parties provide for the parties to be "__________" liable, thus making the surety relationship the predominate one.

Multiple Choice

• jointly and severally
• secondarily and non-exclusively
• conditionally and severally
• collaterally and non-exclusively

23- Which of the following is essentially an installment contract for the purchase of land?

Multiple Choice

• The acceleration clause
• The UCC-1 financing statement
• The revolving credit contract
• The land contract

24- Mako Marina, LLC (Mako) sells and services boat motors. On April 1, 2020, Mako financed the purchase of its entire inventory with Shark Finance Company, LLC (Shark). Shark required Mako to execute a security agreement and financing statement covering the inventory and proceeds of sale. On April 14, 2020, Shark filed the financing statement pursuant to the Uniform Commercial Code (UCC). On April 27, 2020, Mako sold one of the motors to Jeremy for use in his charter business. Jeremy, who had once worked for Mako, knew that Mako regularly financed its inventory with Shark. Mako has defaulted on its obligations to Shark. The motor purchased by Jeremy is __________.

Multiple Choice

• subject to Shark's security interest because he should have considered that Shark financed the inventory purchased by Mako
• subject to Shark's security interest because he purchased the motor for commercial use
• not subject to Shark's security interest because he is regarded as a buyer in the ordinary course of Mako's business
• not subject to Shark's security interest because Shark failed to file the financing statement until more than ten (10) days after April 1, 2020