In Which One of the Following Situations Is a Chose

question 13

Multiple Choice

In which one of the following situations is a chose in action (intangible property) given as security by a debtor to the creditor?

• A) A programmer pawns his computer.
• B) Mr. Jason grants a chattel mortgage on the family car to secure repayment of money borrowed for a trip.
• C) A farmer gives his future crop to the bank as security for the repayment of money borrowed for seed.
• D) A dentist assigns her accounts receivable to the bank that lent her money for the purchase of a business.
• E) Jeff buys a piano under a conditional sale contract.

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Definitions:

Bystanders

Individuals who are present at an event or incident but do not take part in it, often discussed in the context of emergency situations or accidents.

Congestion Toll

A fee charged to drivers who use certain roads during peak periods, intended to reduce traffic congestion by discouraging the use of those routes.

Internalizing

The process of absorbing or taking in information, values, or costs, often used when discussing the incorporation of external costs into market prices.

Externality

An economic effect of a transaction that affects third parties who did not choose to be involved in the transaction.