Which of the following best describes why personal property security legislation requires that a secured party in possession of collateral act in a commercially reasonable way when disposing of it?
A) Secured parties are not in the business of disposing of the assets of their debtors and so need guidance as to how to do it.
B) If there were no legal requirement, secured parties are likely to act in a way which is unreasonable.
C) Secured parties are generally only interested in getting paid what they are owed plus their expenses associated with disposing of the collateral and not necessarily in obtaining the best price for the collateral.
D) Secured parties must dispose of the collateral quickly to avoid having to pay others with claims against the debtor and so may not act in a commercially reasonable manner.
E) Commercially reasonable behaviour is what parties expect in the marketplace.
Correct Answer:
Verified
Q20: Which of the following is TRUE? The
Q21: Orange Bank was going to lend Fasgo
Q22: The Bank of Nova Scotia and MMX
Q23: In June, Alicia borrowed $10 000 from
Q24: TevCo Inc supplies tennis racquets to Olympus
Q26: Comerica Bank is considering lending $50 000
Q27: The notice filing systems in place in
Q28: Jovan Co owns a building in Winnipeg
Q29: Marissa Inc carries on an automobile parts
Q30: In August, Shazad borrowed $20 000 from
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents