Identify Which of the Following Statements Correctly Describes a Hire-

question 44

Multiple Choice

Identify which of the following statements correctly describes a hire- purchase agreement?

• A) This is simply another name for a chattel mortgage on an automobile.
• B) The contract does not create a bailment and the hirer has no contractual obligation to pay the purchase price.
• C) The contract gives the hirer a lien on the goods preventing the owner from selling the goods to another.
• D) The contract creates a bailment and the hirer has an option to purchase the item at the end of the stipulated term.
• E) The contract creates a bailment but the hirer has a contractual obligation to pay the purchase price.

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Definitions:

Deliberate

To think over or consider something carefully and intentionally before making a decision or taking action.

Positive Compatibility

The degree to which individuals, systems, or concepts can coexist or work together in harmony, producing beneficial outcomes.

Cutting Pattern

The designed arrangement or plan for cutting materials in order to minimize waste or maximize efficiency.

Scrap

Waste material or any unwanted item that can be removed from a process, often recycled or sold to reclaim value.