Asked by Nicholas Bermudez on Jul 25, 2024
Verified
Which of the following is true regarding the manner in which a secured party may sell collateral?
A) The sale must be in a private sale only.
B) The sale must be in a public sale only.
C) The sale must be in an acknowledged sale.
D) The sale may be in a private sale, public sale, or an acknowledged sale.
E) The sale may be in either a private sale or a public sale.
Private Sale
A transaction of goods or property conducted directly between individuals or parties without the involvement of a public auction or open market.
Public Sale
The process of selling goods or assets to the highest bidder in an open and public manner.
- Examine the entitlements of debtors following a default and the obligations and privileges of the secured party concerning the collateral.
Verified Answer
BG
Brittney GirdlestoneJul 26, 2024
Final Answer :
E
Explanation :
A secured party has the option to sell the collateral in either a private sale or a public sale, depending on what is deemed appropriate for the situation. This flexibility allows the secured party to choose the method that is most likely to maximize the return from the sale of the collateral.
Learning Objectives
- Examine the entitlements of debtors following a default and the obligations and privileges of the secured party concerning the collateral.
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