Flite-Craft Corporation makes and sells aircraft parts. In most states, the minimum number of directors that must be present before Flite-Crafts board can transact its business isChoose one answer. a. all of the directors authorized in the articles or bylaws. b. a majority of the number authorized in the articles or bylaws. c. any odd number. d. one. Generally, Sports Fitness Club Company and other corporations can pay dividends ifChoose one answer. a. the corporation can continue to pay its debts as they come due. b. the amount of the dividends exceed the corporations net worth. c. the directors order the dividends and the shareholders approve. d. the corporations assets equal its total liabilities. Inez is a director of Jaded Jewelry Corporation. Inez votes against Jadeds purchase of a controlling interest in Kwality Kut Stonez, Inc., which causes Jaded to suffer a loss. Inez is liable for a breach ofChoose one answer. a. no duty or rule. b. the business judgment rule. c. the duty of care. d. the duty of loyalty. Dag is the secured party in a secured transaction with Elmo. In this transaction, DagChoose one answer. a. has a security interest. b. owes payment. c. owes performance. d. owns collateral. Everyday Loans, Inc., issues a line of credit in Glade Electronics Corporation under a security agreement. Later, Glade buys new HD-TVs to add to its inventory. Everyday has a security interest in the new inventoryChoose one answer. a. if the security agreement included an after-acquired property clause. b. if Everyday has not yet filed a financing statement. c. if Glade bought the inventory with Everyday funds. d. under no circumstances. Green Landscape Company buys a backhoe on credit from Heavy Equipment Corporation, but does not make a payment on the loan for several months. Heavy repossesses the backhoe by towing it from a public street. Green sues Heavy for breach of the peace. Green will probablyChoose one answer. a. not prevail, because Heavy did not use judicial process. b. not prevail, because the repossession was not a breach of the peace. c. prevail, because Green did not default on the loan. d. prevail, because the repossession was a breach of the peace. Idle Investments, Inc., and Harbor Bank are secured parties with security interests in property owned by GR8 Manufacturing Corporation. Priority between these security interests is generally determined byChoose one answer. a. the amount of the claim. b. the custom in the trade. c. the time of perfection. d. the time the security agreement was signed. Lena borrows from Mac and Nicol, using the same collateral for both loans. Only Nicol has a perfected security interest. Lena defaults on both loans. The party with first rights to the collateral isChoose one answer. a. Lena. b. Mac and Nicol, in proportion to Lenas debt to each. c. Mac only. d. Nicol only. Mona borrows $1,000 from National Bank, using her motorcycle as collateral. To perfect its security interest, the bank must file its financing statement withChoose one answer. a. the secretary of state. b. the county clerk. c. the city treasurer. d. the ward alderman.
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