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Mayco Has Received Goods from Wallace Pursuant to a Sale

Question 24

Multiple Choice

Mayco has received goods from Wallace pursuant to a sale or return agreement.If Mayco subsequently declares bankruptcy,the goods will be:


A) returned to Wallace because title did not pass to Mayco under this type of sale.
B) belong to Mayco and will not be a part of the bankruptcy.
C) subject to the claims of Mayco's creditors under Section 2-326 of the Uniform Commercial Code.
D) will be kept by the bankruptcy judge and clerk.

Correct Answer:

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