Under a Floating Lien

question 425

Multiple Choice

Under a floating lien:

• A) specific collateral only is used
• B) when collateral is sold the lien expires
• C) new inventory is unavailable to replace old collateral
• D) new inventory is used to replace collateral that is sold
• E) real estate is the collateral used

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Definitions:

Intentional Torts

Wrongful acts committed with the intention of causing harm to others, which can include assault, battery, and defamation.

Principal

The primary party involved in a transaction, agreement, or legal relationship, who has authorized agents to act on their behalf.

Agent

A person authorized to act on behalf of another person or entity, known as the principal, in business dealings or other matters.

Liable

Liable describes the state of being legally responsible for something, especially in terms of owing compensation or facing legal consequences for one's actions or inactions.