8- Jamison buys life insurance and specifies his wife Stephanie will receive the death benefit if Jamison passes away. Stephanie is the __________.

Multiple Choice

• assignee
• insured
• subrogee
• beneficiary

10. Under the Bankruptcy Code's exemption provisions, __________.

Multiple Choice

• the debtor may choose either the state or the federal exemptions, unless state law specifically forbids use of the federal exemptions
• the full value of the debtor's primary motor vehicle is exempt
• the full value of the debtor's primary residence is exempt
• the debtor may choose either the state or the federal exemptions, even if state law specifically forbids use of the federal exemptions

13- Cori's homeowner's insurance policy requires Cori to have a working sprinkler system. Cori's sprinkler system breaks. Before she can get it fixed, there is a fire. Who is responsible for Cori's losses?

Multiple Choice

• Cori
• The insurer
• It depends upon whether Cori was at fault for the sprinkler breaking.
• Each pays one-half. Cori must share liability since she failed to follow policy conditions.

14- To recover under a property insurance policy, an insurable interest must exist __________.

Multiple Choice

• when the policy is purchased and at the time of loss
• when the policy is purchased, but not at the time of loss
• not when the policy is purchased, but at the time of loss
• neither when the policy is purchased nor at the time of loss

15- Stone, a merchant seller in Seattle, contracted with Rose, a merchant buyer in Rochester, for the sale of goods to be shipped by truck. The terms of the contract were "F.O.B. Seattle." Stone delivered the goods to the carrier. After leaving Seattle, the truck containing the goods was never seen again. Stone has demanded payment for the goods, and Rose has refused. If Stone sues, the outcome will be:

Multiple Choice

• Rose will win because Rose did not receive the goods.
• Rose will win because under the UCC, this was a shipment contract.
• Stone will win because Stone was not at fault in causing the loss.
• Stone will win because under the UCC, this was a shipment contract.

16- Peach Auto Sales, LLC (Peach) has a secured loan on its inventory through Southshore Credit Union (Southshore), which Southshore filed in February. In March, Peach has another secured loan on its inventory from GMAC credit. GMAC files its security interest in May. Which creditor will have priority in the event of a default by Peach?

Multiple Choice

• Neither will have priority, and both will share equal revenue from the sale of inventory
• Southshore will have priority, and it will have its debt satisfied prior to GMAC receiving funds
• Since GMAC came last, it will have priority under the "last in, first out" (LIFO) principle, and will accordingly have its debt satisfied before Southshore
• Since there is an irredeemable conflict regarding priority of their respective security interests, neither Southshore nor GMAC will be capable of enforcing its security interest, and both creditors must attempt to recover the debt owed as an unsecured loan