Identify which of the following statements best describes the legal position of a conditional seller.
A) The conditional seller loses all legal rights against the conditional buyer if he fails to register.
B) The conditional seller must comply with the provisions of the Personal Property Security Act to protect his interest.
C) The conditional seller has no legal rights because such contracts are void.
D) The conditional seller is in a better legal position than if instead he had been the chattel mortgagee of the same assets.
E) He is given first priority over all of the other creditors with respect to all of the conditional buyer's assets.

Question

Quizplus · Accepted Answer

The legal position of a conditional seller is that he must comply with the provisions of the Personal Property Security Act to protect his interest. This act regulates the creation, perfection, and enforcement of security agreements, including conditional sales contracts. If the conditional seller fails to register and the conditional buyer defaults, the seller may not have priority over other creditors who have secured their interests properly. Therefore, it is important for the conditional seller to comply with the provisions of the act to protect his legal position.

Identify Which of the Following Statements Best Describes the Legal