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

Question

Quizplus · Accepted Answer

Better Buy has a purchase money security interest in the television, which means that they have a security interest in the television that secures payment of the debt used to purchase it. This interest is automatically perfected at the time of the credit sale.

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