New Horizons Delivers 20 Dozen Blankets to Its Agent,Marketall,for Sale

question 15

Multiple Choice

New Horizons delivers 20 dozen blankets to its agent,Marketall,for sale by Marketall.Marketall maintains a place of business where it sells bedding under its own name.A creditor of Marketall may obtain possession of New Horizons' blankets:

• A) under the Code,since a consignment is regarded as a sale or return.
• B) but cannot prevail against New Horizons because New Horizons keeps title in a consignment until the goods are sold to a third party.
• C) and will prevail against New Horizons even if Marketall had a sign,in compliance with state law,evidencing New Horizons' ownership interest in the blankets.
• D) and will prevail against New Horizons even if Marketall can establish that it is generally known by its creditors to be substantially engaged in selling the goods of others.

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