When a Car Is Sold on Credit, What Legal Status

question 63

Multiple Choice

When a car is sold on credit, what legal status does the creditor generally have with reference to the automobile? ​

• A)The creditor retains legal title and thus holds a security interest in the vehicle, until it is paid for in full.
• B)The creditor is secondarily responsible to third parties injured by the driver of the vehicle.
• C)The creditor is obliged to carry collision and comprehensive automobile insurance on the vehicle to protect the security interest.
• D)all of the above

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Definitions:

Key Partners

Strategic relationships with other businesses or entities that are essential to the success and operations of a company or organization.

Key Activities

The essential tasks or operations that must be carried out to deliver a company's value proposition to its customers.

Key Resources

The essential inputs and assets necessary for a business or organization to operate effectively and achieve its goals.

Business Model Canvas

A strategic management template used for developing new business models or documenting existing ones, visually outlining a company's value proposition, infrastructure, customers, and finances.