Under the Uniform Commercial Code (UCC) Article 9, which of the following actions will PERFECT a security interest in inventory?

Answer options:

Filing a financing statement.

Attachment of the security interest.

Obtaining a signed security agreement.

Automatic perfection upon attachment.

How to approach this question

Perfection methods: Filing (most common), Possession, Control, Automatic (PMSI consumer). Inventory usually requires filing.

Full Answer

A.Filing a financing statement.✓ Correct

Perfection of a security interest in inventory is typically achieved by filing a financing statement (UCC-1). Possession is also possible but impractical for inventory. Automatic perfection does not apply to inventory.

Common mistakes

Confusing attachment (rights vs debtor) with perfection (rights vs world).

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