Which of the Following Is True Regarding a Security Interest

question 52

Multiple Choice

Which of the following is true regarding a security interest in consumer goods?

• A)Under federal consumer protection legislation,a seller may not hold a security interest in consumer goods.
• B)A financing statement must be filed in order to perfect a security interest in consumer goods.
• C)When a creditor sells a consumer good to a debtor on a credit basis,the security interest perfects automatically.
• D)Under most state laws,a seller may not hold a security interest in consumer goods.
• E)When a creditor sells a consumer good to a debtor on a credit basis,the security interest is perfected by the seller's possession.