George Bought a Washing Machine from Sears, Which Financed the Purchase

question 15

Multiple Choice

George bought a washing machine from Sears, which financed the purchase and which filed a financing statement. George couldn't make the payments, so he sold the machine to his neighbor, Nancy, for her home use.

• A) Sears must pursue George for payment, Nancy takes free of its interest.
• B) Sears can repossess the machine from Nancy.
• C) Nancy can keep the machine, but only if she paid a reasonable amount for it.
• D) Nancy can keep the machine, but she must pay Sears what is owing on it.
• E) two of the above

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Definitions:

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