Delores Del Rio bought a packing machine for her business from Ace Machines and paid cash on delivery. Ace had previously given a chattel mortgage on the machine to the bank, which had registered it under the Personal Property Security Act. A bailiff tried to repossess the machine on behalf of the bank. Which of the following is TRUE?
A) The chattel mortgage is not effective because Delores paid for the machine in full.
B) The chattel mortgage is not effective because Delores did not know of it when she purchased the machine.
C) The chattel mortgage is effective
D) You cannot register a chattel mortgage under the PPSA
E) Both A and B
Correct Answer:
Verified
Q46: Tina Sommers borrows $10,000 from Freddy Gomez
Q47: Which of the following statement(s)is/are TRUE?
A)Collateral is
Q48: Which of the following options may be
Q49: What must a creditor, who has taken
Q50: Which of the following is NOT an
Q52: On February 1, Futuristic Electronics sells and
Q53: A business arrangement in which the seller
Q54: Rodney, a bailiff, has been authorized to
Q55: Which of the following types of security
Q56: Why is it important to effect timely
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents