Business and Personal Law

Chapter 11: Credit and Debt

Self Check Answers

Section 11.1

1. Open-end credit: credit cards issued by banks or department store charge cards. Closed-end credit: vehicle, house, or furniture loans.
2. consumer goods, fixtures, equipment, inventory, farm products, and real estate
3. They allow debtors to get additional credit that is secured by the same collateral, such as a house.

Section 11.2

1. breach of an express warranty or warranty of merchantability, fraud or breach of an express warranty, breach of state consumer protection law
2. Notify the credit card company to put the disputed amount on hold.
3. While in school, government pays the interest on a subsidized student loan. Student pays interest on an unsubsidized student loan while in school.