Regarding security devices, in a the item remains the property of the vendor until the debt is paid, whereas in a _ the property is transferred to the buyer and immediately upon default re- transferred to the vendor.
A) assignment; pledge
B) chattel mortgage; pledge
C) conditional sale; chattel mortgage
D) conditional sale; consignment
E) chattel mortgage; conditional sale

Question

Quizplus · Accepted Answer

In a conditional sale, the item remains the property of the vendor until the debt is paid. In a chattel mortgage, the property is transferred to the buyer but serves as collateral for the debt. In a pledge, the possession of the item is transferred to the lender as security for the debt. Therefore, only choice C describes the scenario discussed in the question.

Regarding Security Devices, in a the Item Remains the Property