Asked by Marco Bianchini on May 31, 2024
Verified
A security interest in consumer goods is always automatically perfected upon attachment.
Consumer Goods
Products bought for consumption by the average consumer, typically including items such as food, clothing, and household goods.
Automatically Perfected
A legal status of a security interest in which it becomes enforceable against third parties without any further action required by the interest holder.
- Understand the consequences of attaching a security interest and the importance of perfecting such an interest.
Verified Answer
KM
Krystal MartinezJun 06, 2024
Final Answer :
False
Explanation :
A security interest in consumer goods is often perfected upon attachment without further action (due to a provision for automatic perfection for consumer goods under UCC Article 9), but this is not always the case. There are exceptions and specific conditions that must be met, and not all types of consumer goods or security interests may qualify for automatic perfection.
Learning Objectives
- Understand the consequences of attaching a security interest and the importance of perfecting such an interest.
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