Multiple choice

1. Gulf Air, Inc., is the major wholesale distributor of software in the state of Florida. Its closest competitor is Fluid Systems Company, another Florida firm. The two firms agree that Gulf Air will operate in south Florida and Fluid Systems will operate in north Florida. This is

Choose one answer.

a. a group boycott. 

b. a market division. 

c. a joint venture. 

d. an exclusive-dealing contract.

2. Capital Lending Company does a wide variety of lending, and normally obtains a security interest on loan transactions. To which of the following will Article 9 (Secured Transactions) of the Uniform Commercial Code not apply?

a. Farm products

b. Consumer goods

c. Accounts Receivable

d. A home equity loan

e. Trademarks

3. Two Uniform Commercial Code concepts relating to secured transactions are "attachment" and "perfection." Which of the following is TRUE in connection with the similarities and differences between these two concepts? 

a. The creditor normally does not need a security agreement in order to perfect.

b. Attachment relates primarily to the rights against other creditors and third parties, while perfection relates primarily to the rights against the debtor.

c. You cannot attach without filing a financing statement.

d. There can be attachment and perfection without filing a financing statement.

e. It is not possible to have a simultaneous attachment and perfection

4. nder the UCC Secured Transactions Article, which of the following conditions is not required to create a valid security interest?

a. There must be a security agreement.

b. The creditor must give value.

c. The public must be notified

d. The debtor must have rights to the collateral