An Appliance Store Sells a Television Set to Adam for $750

question 46

Multiple Choice

An appliance store sells a television set to Adam for $750 on a conditional sales contract, reserving a security interest in the set until Adam has paid for it. The store does not file a financing statement but relies on attachment for perfection. Adam later borrows money from a credit union and gives it a security interest in the television set. The credit union does not perfect the security interest. Adam defaults on his loans and the credit union tries to claim the set. Under these circumstances, _____.

• A) the credit union has a better claim to the set than does the appliance store
• B) the appliance store cannot claim the set as they relied on attachment for perfection
• C) the appliance store has a better claim to the set than the credit union
• D) neither the appliance store nor the credit union can claim the set

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Definitions:

Auxiliary Consumption

The additional expenditure on goods or services that accompanies the use or consumption of a primary product.

Production

The process of creating goods or services by combining various resources, including labor, raw materials, and technology.

3M Model

A framework in marketing used to guide the development of messaging and communication strategies based on three fundamental elements: Market, Message, and Medium.

Social Media Dialogue

The interaction between brands and consumers or between individuals, through comments, messages, and posts on social media platforms.