The seller is said to have a security interest in shipped goods if the agreement between the buyer and seller allows the seller to retain title after the goods are shipped.

Question

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If the agreement between the buyer and seller allows the seller to retain title after the goods are shipped, it means that the seller has a security interest in the shipped goods until the buyer completes payment or fulfills other obligations as per the agreement. This is a common practice in many commercial transactions where the seller wants to ensure that they have some recourse in case the buyer defaults or fails to honor their commitments.

The Seller Is Said to Have a Security Interest in Shipped