With regard to conditional sales and chattel mortgages,which of the following is false?
A) If a conditional buyer defaults in his payments, the conditional seller can generally seize the chattel without a court order.
B) A conditional seller can assign the conditional sale contract to a finance company without the consent of the conditional buyer.
C) A chattel mortgagee must register the mortgage in the appropriate registration office, not to protect his claim on the chattel against the chattel mortgagor, but to protect his claim against third parties-e.g., a bona fide purchaser for value.
D) There is no longer a distinction between a chattel mortgage and a conditional sale.
E) These transactions are now governed by the Personal Property Security Act.

Question

Quizplus · Accepted Answer

This statement is false. There is still a distinction between a chattel mortgage and a conditional sale. In a chattel mortgage, the ownership of the chattel remains with the mortgagor until the mortgage debt is fully paid, while in a conditional sale, ownership of the chattel passes to the conditional buyer upon delivery, but the seller retains a security interest in the chattel until full payment is made.

With Regard to Conditional Sales and Chattel Mortgages,which of the Following