Which of the Following Statements Is TRUE with Respect to Statutory

question 11

Multiple Choice

Which of the following statements is TRUE with respect to statutory liens that apply in the context of bailments?

• A) the statutory lien provides a right to retain possession, but not a right of sale
• B) if goods are sold under a statutory lien, any money not required to discharge the debt is paid to the bailor
• C) the legislation provides a lien to every type of bailee, as long as the bailment is not gratuitous
• D) statutory liens are effective regardless of who has possession of the relevant property
• E) statutory liens are restricted to "common callings," such as innkeepers and common carriers

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Definitions:

Essential Nature

The fundamental qualities or characteristics that define the true identity or core purpose of something.

Autograph Fraud

Involves the forgery or misrepresentation of a celebrity or notable individual's signature with the intent to deceive or profit.

Holder in Due Course

A legal term describing a party who has acquired a negotiable instrument in good-faith and for value, and thus has certain rights above the original payee, especially in terms of enforcing payment.

Fair Value

An estimate of the market value of an asset, determined by mutual agreement between a willing buyer and seller, each possessing adequate information.