Under the Terms of Most Conditional Sale Assignments to Finance

question 14

Multiple Choice

Under the terms of most conditional sale assignments to finance companies, the conditional seller remains liable for payment if their conditional buyers should default. This arrangement is known as

• A) recourse financing.
• B) an equitable assignment.
• C) discount financing.
• D) factoring.
• E) account receivable installment sales.

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Definitions:

Services

Activities performed to meet the needs of customers or clients, often in exchange for payment.

Concurrent Conditions

Conditions in a contract or legal agreement that must be met by both parties at the same time in order for the contract or agreement to become effective or proceed.

Precedent

A model case that a court can follow when facing a similar situation.

Delegation

The process of assigning responsibility and authority from one person or entity to another to carry out specific activities.