What Is the Difference Between a Chattel Mortgage and a Conditional

question 39

Multiple Choice

What is the difference between a chattel mortgage and a conditional sale contract?

• A) a conditional sale is a personal obligation of the buyer, whereas a chattel mortgage does not bind the chattel mortgagor personally
• B) in a conditional sale contract the security is the property sold, whereas a chattel mortgage can have as security any chattels
• C) a chattel mortgage must be registered to affect third parties, whereas a conditional sale agreement does not need to be registered to affect third parties
• D) if there is default under a conditional sale contract, the seller can seize the goods and sue the buyer for any deficiency, whereas under a chattel mortgage the chattel mortgagee can only seize the goods
• E) none of the above is correct

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Definitions:

Variable Selling

Refers to costs that vary directly with the level of sales, such as commissions and shipping charges.

Administrative Expense Budget

A projection of the costs associated with the general administration and management of a business.

Variable Cost

Costs that change in proportion to the level of production activity or business operations.

Monthly Fixed Cost

Regular, consistent costs that do not vary with production volume or business activity level, calculated on a monthly basis.