Which of the Following Is False Regarding a Creditor's Rights

question 34

Multiple Choice

Which of the following is false regarding a creditor's rights to collateral upon a debtor's default?

• A) If a debtor defaults on a loan, the secured party can take possession of the collateral so long as the debtor does not breach the peace.
• B) Under the UCC, the secured party can sell, lease, or transfer the collateral in any commercially reasonable method.
• C) Regardless of where the collateral is sold, the secured party must strive to receive the best price for the collateral.
• D) Instead of disposing of the collateral, the secured party may choose to keep the collateral in full or partial satisfaction of the debt.
• E) A debtor in default has no rights in regard to whether collateral is retained by the secured party or sold.

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Definitions:

Persuasive Message

A communication intended to influence the attitudes, beliefs, or behaviors of the recipient.

Hedging Words

Words or phrases used to soften statements, making them less direct or assertive, often to express uncertainty or politeness.

Legal Action

The process of using the legal system to resolve disputes, enforce laws, or seek justice through courts.

Negative Message

Communication that conveys a refusal, denial, or unfavorable information in a diplomatic or considerate manner.