When a Seller Sells on Credit and Is Given a Security

question 40

Multiple Choice

When a seller sells on credit and is given a security interest in the goods,that interest is called:

• A) a purchase money security interest.
• B) a future transaction.
• C) a floating lien.
• D) none of the above.

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Definitions:

Article 2A

A specific portion of the Uniform Commercial Code that governs leases of personal property.

Buyer's Remedies

Legal actions available to a buyer when a seller fails to fulfill their contractual obligations, including recovery of damages and cancellation of the contract.

Tender

An offer to perform an obligation or to pay an amount to fulfill a contract, or the actual payment or delivery in compliance with such an offer.

Breach

The act of breaking a law, agreement, or code of conduct.