Question

Sun, Inc. manufactures and sells household appliances on credit directly to wholesalers, retailers, and consumers. Sun can perfect its security interest in the appliances without having to file a financing statement or take possession of the appliances if the sale is made by Sun to:

1) Wholesalers
2) Retailers
3) Consumers

Answer 1

Sun, Inc. can perfect its security interest in appliances sold to retailers and consumers without filing a financing statement or taking possession of the appliances.

Step-by-step explanation:

Sun, Inc. can perfect its security interest in the appliances without having to file a financing statement or take possession of the appliances if the sale is made by Sun to retailers or consumers.

According to the question, Sun, Inc. manufactures and sells household appliances on credit. When selling to wholesalers, Sun, Inc. would need to file a financing statement or take possession of the appliances to perfect its security interest. However, when selling to retailers or consumers, Sun, Inc. can perfect its security interest without having to file a financing statement or take possession of the appliances.

Therefore, the answer is option 2) Retailers and option 3) Consumers.