Asked by Paola Davis on May 12, 2024
Verified
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.
Security Interest
A legal claim or right granted over assets to secure the performance of an obligation or the payment of a debt.
Title
A legal term referring to the rightful ownership of property, including the rights to use, possess, and transfer the property.
Shipped Goods
Items that are transported from one location to another, typically through the mail or a delivery service.
- Examine the idea of having a financial stake in goods, covering the rights of both buyers and sellers.
Verified Answer
YS
Yasmyne SmithMay 15, 2024
Final Answer :
True
Explanation :
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.
Learning Objectives
- Examine the idea of having a financial stake in goods, covering the rights of both buyers and sellers.
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