John Buys a New Car with the Help of a Loan

question 58

Multiple Choice

John buys a new car with the help of a loan. He permits the creditor to take possession of the car if he cannot repay the loan in time. Here, the car is the ________.

• A) after-acquired property
• B) collateral
• C) intangible personal property
• D) floating lien

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Definitions:

Interstate Commerce

The conduct of trade, business, or transportation between states within a country, subject to federal regulations.

Discrimination

Discrimination involves unfair or prejudicial treatment of people based on characteristics such as race, age, sex, or disability instead of individual merit.

Eminent Domain

The right of a government to seize private property for public use, with compensation to the owner.

Just Compensation

The fair market value that is required to be paid to an individual for property taken by the government through eminent domain.