Business Law Challenge Quiz Flashcards
When a mortgage is assumed, the buyer…
Becomes personally liable on the debt
When a mortgage is assumed the buyer, the seller…
Remains liable on debt
When a mortgage is assumed by buyer, the seller remains liable on the debt unless he is…
Released by the mortgage holder
In assumption of a mortgage the buyer becomes…
2) the seller has…
The principal debtor
2) rights and responsibilities of surety
When a buyer assumes a debt and he seller is not released by the mortgage holder, and the buyer defaults, the mortgagor may sue…
The buyer or the seller
Automatic perfection applies to purchase money security interests in…
Consumer goods
If collateral is consumer goods, the secured creditor who took possession of the collateral may sell the collateral at a private sale…
Without notice of other secured parties
A secured creditor who sells collateral in private sale must notify before sale…
2) unless collateral is…
The debtor
2) perishable or threatens to decline in value
The debtor may regain possession of property of an interim trustee if the debtor…
Files bond requested by the court
Unauthorized completion of an incomplete instrument and lack of delivery are…
Personal defenses
A holder in due course, takes an instrument free of…
Personal defenses
When a check is completed through the negligence of the drawer, the defense created on the instrument is the…
Personal defense of unauthorized completion
When a party sends an incomplete check to a seller, they are…
Negligent and it is a personal defense
Under a shipment contract covered by the Sales Article of the UCC, title and risk of loss for conforming goods pass to buyer when…
Seller delivers goods to carrier
Negligence of the manufacturer is not important in determining whether…
Manufacturer is strictly liable in tort for defective product
