Creditors Cannot Legally Request Collateral on a Previously Unsecured Loan

question 3

True/False

Creditors cannot legally request collateral on a previously unsecured loan.

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Definitions:

Customer

An individual or business that purchases goods or services from a company.

Retailer

A business or individual that sells goods or services directly to consumers, acting as the final link in the supply chain.

In-Transit Merge

Logistics strategy where goods from different suppliers are combined into a single shipment en route to the customer to reduce handling costs and improve efficiency.

Drop-Shipping

A retail fulfillment method where a store doesn't keep the products it sells in stock but instead transfers the customer orders and shipment details to either the manufacturer or a wholesaler, who then ships the goods directly to the customer.