A company named Printers World Ltd. bought a $9,000 plotter under a conditional sale contract and, because of business reverses, is unable to make the payments. Which of the following is accurate with respect to the legal position of the parties?
A) The seller could seize the goods without a court order only if it had properly registered the conditional sale contract.
B) The seller could seize the goods but, before resale can take place, the debtor must be given notice and an opportunity to redeem.
C) The seller could only seize the goods, and could not instead opt to sue the company.
D) The seller could seize and sell the same day because it had already waited three months after default before taking any action.
E) The seller could seize the goods only if it obtained a court order.

Question

Quizplus · Accepted Answer

Under a conditional sale contract, the seller retains ownership of the goods until the buyer has paid the full purchase price. If the buyer defaults on the payments, the seller has the right to seize the goods. However, before resale can take place, the debtor must be given notice and an opportunity to redeem. This is known as "the right to cure" and is outlined in the Uniform Commercial Code (UCC). Therefore, option B is the accurate legal position of the parties.

A Company Named Printers World Ltd