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Sally Agrees to Be Surety for Her Brother Dan in His

Question 132

Multiple Choice

Sally agrees to be surety for her brother Dan in his purchase of a computer from a local dealer.The dealer extended $2,000 in credit to Dan to enable him to purchase the computer,and took a security interest in the computer.The dealer does not file a financing statement.Dan does not pay for the computer,because it is defective.The dealer repossesses it and sells it for $400,a reasonable amount.If the computer dealer seeks to recover from Sally,how much can it recover?


A) nothing, because it did not file a financing statement
B) nothing, assuming the computer is actually defective
C) $1,600
D) $1,600, but only if it has unsuccessfully tried first to collect from Dan
E) $2,000

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