Ted and Alice Own Their Recreational Vehicle Subject to a Security

question 39

Multiple Choice

Ted and Alice own their recreational vehicle subject to a security agreement to Third U.S.Bank to secure the repayment of the purchase money loan.Ted and Alice sell their RV to Bob and Carol,who agree to take over the loan payments to the bank.There is no novation with the bank.Under these facts,if Bob and Carol do not make the loan payments,Third U.S.Bank

• A)can sue Bob and Carol only.
• B)can sue Ted and Alice only.
• C)can sue Bob,Carol,Ted,and Alice.
• D)cannot sue anyone but can repossess the RV.

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Definitions:

Purchaser

An individual or entity that buys goods or services for personal use, resale, or further production.

Seller

An individual, company, or entity that offers goods or services for sale.

Government Policy

The set of laws, regulations, actions, and decisions made by a government to advance its goals.

Potentially Efficient

A condition or situation in which resources could be utilized in a way that maximizes productivity or benefit, but are not currently being used to their full potential.