Marcia buys a $3, 000 high-definition plasma television for her home on credit extended by the seller, Circuit City.Circuit City requires Marcia to sign a security agreement.Circuit City has a ________ interest in the television that is automatically perfected at the time of the credit sale.

Question

Quizplus · Accepted Answer

Circuit City has a purchase money security interest in the television, meaning that the TV serves as collateral for the debt owed by Marcia. This type of interest is automatically perfected at the time of the credit sale. Cumulative security, future advance monetary, and default are not relevant in this scenario.

Marcia Buys a $3, 000 High-Definition Plasma Television for Her