Danson Corp.sends 15 snow blowers by rail to Gene Hardware.To show where the goods will be shipped and who gets them when they arrive,Danson will obtain ____,which can be used as collateral in a secured transaction.

Question

Quizplus · Accepted Answer

A bill of lading is a document that shows the carrier's receipt of goods and their agreement to transport them to a specific destination. It also serves as evidence of ownership, allowing the holder to claim the goods upon arrival. This makes it a suitable document for Danson Corp. to obtain as collateral in a secured transaction. A warehouse receipt might be appropriate if the goods were being stored in a warehouse, but in this case, they are being shipped by rail. Chattel paper refers to a document that represents a security interest in personal property, such as a loan or lease agreement, and would not apply to this scenario. A certificate of deposit is a financial instrument issued by a bank that represents a deposit and earns interest; it is not related to shipping goods.