In a Consignment Situation,when Are Goods Subject to the Claims

question 102

Multiple Choice

In a consignment situation,when are goods subject to the claims of the buyer's creditors?

• A) when the seller files a financing statement
• B) when the seller fails to file a financing statement
• C) whenever the goods are in the buyer's place of business
• D) only if there is a written agreement that the consigned goods are subject to the claims of the buyer's creditors
• E) only if the creditor seeks the consigned goods within 30 days of the time they are placed in the buyer's place of business

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Definitions:

Fair-Mindedness

The quality of being impartial and just, treating all sides with equality and fairness.

Intellectual Courage

The willingness to engage with challenging ideas or questions, even when it involves personal risk or challenges to one’s own beliefs.

Rural Area

A region located outside towns and cities, often characterized by lower population density, agricultural, or natural settings.

Critical Thinking

The objective analysis and evaluation of an issue in order to form a judgment.