If a Repossessed Product Is Sold for More Than What

question 90

Multiple Choice

If a repossessed product is sold for more than what is owed by the debtor:

• A) the seller is not obligated to return the difference
• B) the seller is obligated to return the difference
• C) the debtor and seller must split the difference
• D) the seller must give the debtor at least 50% of the difference
• E) none of the other choices are correct

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Definitions:

Homeowner Bailouts

Financial assistance programs designed to help homeowners facing foreclosure, often as a result of economic crises, by providing refinancing, loan modifications, or other aids to prevent loss of their homes.

Moral Hazard

A situation where one party engages in risky behavior knowing that they are protected against the consequences, often because another party bears the cost.

Irresponsible Borrowings

Financial behavior that involves taking on debt in ways that are unsustainable or without a plan to manage repayment, leading to potential financial harm.

Shirking

The behavior of employees who avoid doing their work or put in less effort than is expected, which can negatively impact productivity.