True or False and why?

1. Jughead owns a business selling insects for organic gardening. Archieis seeking a loan from Riverdale Natural Bank. The loan officer is asking that the loan be secured by Jughead's inventory of insects, now owned or hereafter acquired. What has to be done is, a new security agreement will need to be signed each time Jughead gets new insects or sells insects.
2. Chip and Dale operate a commercial real estate company as a general partnership. They buy distressed properties and fix them up for resale. One day while looking at a distressed building, Chip had the idea that this would be a great spot for a fashion design studio, which has always been his real dream. Chip decided not to tell Dale about the building and made a bid himself. Chip is justified in pursuing the building for a side project, even without Tom's knowledge.