Question 4:1 4 pts Under the UCC farm products rule, if the seller is a farmer,

Question

Question 4:1 4 pts Under the UCC farm products rule, if the seller is a farmer, the buyer is subject to the seller's creditors. O True O False Question 4:2 4 pts Don Dealer, a farm equipment dealer, sold a tractor to Kevin Keeper, Kevin paying cash. Dealer bought his equipment from International Cultivator, which financed the sale and perfected its security interest in the equipment. International Cultivator used the tractors as collateral for a production loan from American Bank, the bank perfecting its security interest. Dealer also had a loan from Local Bank, Local perfecting its security interest in Dealer's inventory. If International defaulted on its loan, American bank would win a lawsuit to recover the tractor from Kevin. True O False Question 43 4 pts Don Dealer, a farm equipment dealer, sold a tractor to Kevin Keeper, Kevin paying cash. Dealer has a loan from Local Bank, Local perfecting its security interest in Dealer's inventory. If Don Dealer defaulted on its loan, Local Bank would win a lawsuit to recover the tractor from Kevin. O True O False

Explanation / Answer

Answer:

41.False

Explanation:

Farmer is responsible to his creditors and the buyer cannot be responsible for that.Buyer is a person who buys the product from seller by paying some amount for the product.

42.True

Explanation:

International cultivator has bought production loan by using tractor as security interest.So if they fail to repay the loan,American bank has the right to sue the tractor from them

43.False

Explanation:

Don dealer has bought loan from local bank with his inventory for security interest.So local bank cannot sue the tractor which was sold to kevin already.KEvin has paid the cash and the owner of the tracotr is now kevin .Dealer has not mentioned tractor for secuity in buying loan so bank cannot sue the tractor instead they can sue the dealer's inventory

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