With regard to conditional sales and chattel mortgages, which of the following is false?
A) There is no longer a distinction between a chattel mortgage and a conditional sale.
B) A chattel mortgagee must register the mortgage in the appropriate registration office, not to protect his claim on the chattel against the chattel mortgagor, but to protect his claim against third parties, e.g., a bona fide purchaser for value.
C) These transactions are now governed by the Personal Property Security Act.
D) A conditional seller can assign the conditional sale contract to a finance company without the consent of the conditional buyer.
E) If a conditional buyer defaults in his payments, the conditional seller can generally seize the chattel without a court order.

Question

Quizplus · Accepted Answer

There is still a distinction between a chattel mortgage and a conditional sale, despite some similarities between the two. A chattel mortgage involves the transfer of ownership of the chattel to the mortgagee with the condition that ownership will be transferred back to the mortgagor upon repayment of the mortgage. In contrast, a conditional sale involves the seller retaining ownership of the chattel until the buyer has made all payments under the sale contract.

With Regard to Conditional Sales and Chattel Mortgages, Which of the Following