John,a Salesperson for the Computer Division of B & C

question 46

Multiple Choice

John,a salesperson for the computer division of B & C Machines Ltd.,is meeting with a potential customer at 11:00 tomorrow morning.Because the customer does not have the funds to pay the full price of the system required,John wants to discuss chattel mortgages and conditional sales contracts.Which of the following is false with regard to these contracts?

• A) If the seller of goods is willing to allow the buyer to pay by installments, he could use either a conditional sale contract or a chattel mortgage to obtain security for payment of the debt.
• B) Both contracts are governed by the Personal Property Security Act.
• C) Both contracts provide that the debtor has quiet possession of the goods given as security as long as he is not in default.
• D) In both cases, the debtor is entitled to have the lien removed upon final payment.
• E) Only a conditional seller needs to register his interest for protection against third-party claims; a chattel mortgagee need not do so.

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Definitions:

Texas Instruments

An American technology company that designs and manufactures semiconductors and various integrated circuits.

Principle of Justice

A fundamental normative rule ensuring fairness and equity among individuals within society or a system.

Inner Circle

A close group of advisors or a team that holds a privileged position of influence in an organization or group.

Getting Ahead

The process of making progress or advancing in one’s career, social status, or life in general.