Under the Uniform Commercial Code (UCC) Article 9, which of the following actions will perfect a security interest in inventory?

Answer options:

Filing a financing statement.

Automatic perfection upon attachment.

Obtaining control of the inventory.

Attaching the security interest.

How to approach this question

Identify the collateral type (Inventory). Determine the valid perfection methods (Filing or Possession).

Full Answer

A.Filing a financing statement.✓ Correct

Under UCC §9-310, filing a financing statement is the primary method to perfect a security interest in inventory. Possession is also possible, but filing is the standard answer. Automatic perfection is for PMSIs in consumer goods.

Common mistakes

Confusing inventory with consumer goods for automatic perfection.

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