Multiple Choice
Last night at the dinner table,Uncle Isaac started on again about his company buying a truck on time.Which of these statements by his friends is false with regard to conditional sales contracts?
A) If goods are repossessed under a conditional sales contract, the creditor must use commercially reasonable care to protect the goods and keep them in good repair.
B) If the company is in default, in some provinces the conditional seller can seize the truck, sell it, and sue for any deficiency between the amount received and the amount the company owes.
C) If the company is in default and the conditional seller seizes the truck, the relevant statute provides that it still has the right to redeem it within a short period of time.
D) The rights and obligations of the company differ substantially if the company buys the truck under a chattel mortgage rather than a conditional sale contract.
E) If the company were in default, the conditional seller could sell the truck, but it must return any of the proceeds from that sale beyond the debt and costs owed.
Correct Answer:
Verified
Correct Answer:
Verified
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