ExpertHard1 markMultiple Choice
CPA · Question 46 · Area II: Business Law
Under the Uniform Commercial Code (UCC) Article 9, which of the following actions will PERFECT a security interest in inventory?
Under the Uniform Commercial Code (UCC) Article 9, which of the following actions will PERFECT a security interest in inventory?
Answer options:
A.
Filing a financing statement.
B.
Attachment of the security interest.
C.
Obtaining a signed security agreement.
D.
Automatic perfection upon attachment.
How to approach this question
Perfection methods: Filing (most common), Possession, Control, Automatic (PMSI consumer). Inventory usually requires filing.
Full Answer
A.Filing a financing statement.✓ Correct
A
Perfection of a security interest in inventory is typically achieved by filing a financing statement (UCC-1). Possession is also possible but impractical for inventory. Automatic perfection does not apply to inventory.
Common mistakes
Confusing attachment (rights vs debtor) with perfection (rights vs world).
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