Candy Bought a Sofa from Max on Credit

question 243

Multiple Choice

Candy bought a sofa from Max on credit. She is to make 5 monthly payments of $200 each. After one month Candy stops making payments. Max is a secured creditor; he may:

• A) may enter Candy's home at any time to take the sofa
• B) take steps to repossess the sofa from Candy
• C) require Candy to perform manual labor in exchange for the cash payments
• D) force Candy to turn over the sofa plus other property to make up for Max's time and efforts spent on collection
• E) do none of these things, Max is not an unsecured creditor

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Definitions:

Unemployment Compensation

Financial payments given to individuals who have lost their jobs without their own fault, provided by the government or other authorized bodies.

Transfer Payment

A payment made by the government to individuals, without any goods or services being received in return. This includes welfare payments, social security, and subsidies.

GDP

Gross Domestic Product, the total value of all goods and services produced over a specific time period within a country.

Indirect Business Taxes

Taxes imposed on goods and services that are passed on to the buyer, such as sales taxes or value-added taxes.