Question 16

A subcontractor has signed a document with the following language:

Notice:This document waives rights unconditionally and states that you have been paid for giving up those rights.

The subcontractor signed the document in advance of receiving payment for his work. What are the subcontractors rights on the payment?

a.The document is unconstitutional because of this clause and the lack of due process b.The document waives only the lien c.The subcontractor has unconditionally surrendered his rights to payment d.The subcontractor has given up his lien but might still be able to collect on a unsecured contract basis

Question 19

Sam Furber purchased a home in 2019 for $636,000, giving a mortgage to CNN Mortgage Co. for $500,000. After moving in, Sam had a built-in dining cabinet and bookshelves installed. He financed the shelving with Libraries, Inc., a total of $22,000. Libraries filed a financing statement on the security interest in the shelving on March 18, 2019. The shelving and cabinet are attached to the walls of the home. In 2020, Sam had a home theater installed by Living Entertainment. Living Entertainment financed the installation, a total of $41,000, through a security interest and filed a financing statement on September 9, 2020. The home theater includes an in-wall screen as well as projection equipment suspended from the ceiling and 12 recliner chairs. Sam lost his job and has defaulted on his mortgage payment. CNN is foreclosing on Sams home.

What would happen if Living Entertainment filed its financing statement centrally?

a.It would be invalid b.There is no filing required because recliner chairs are not real property c.Living Entertainment would be perfected and secured on the chairs and the equipment d.Living Entertainment would have filed correctly and would be protected for the full amount financed

Question 20

How many baselines are there?

a.32 b.64 c.72 d.35