Final answer:
When a person uses a credit card to make a purchase, it is considered a form of borrowing money. In the case of Eric using his Home Depot credit card to buy a garden tractor, he essentially took out a loan from Home Depot. Since he lost his job and cannot make any payments, Home Depot has the right to take action to recover its money.
Step-by-step explanation:
When a person uses a credit card to make a purchase, it is considered a form of borrowing money. In the case of Eric using his Home Depot credit card to buy a garden tractor, he essentially took out a loan from Home Depot. Since he lost his job and cannot make any payments, Home Depot has the right to take action to recover its money.
1) The statement that Home Depot cannot seize any of Eric's goods is false. Home Depot can take legal action to recover the money Eric owes them. They may be able to seize the garden tractor as collateral for the loan.
2) The statement that Home Depot can seize any goods Eric bought at Home Depot is also false. They can only seize the garden tractor if it was used as collateral for the loan.
3) The statement that Home Depot can take back the tractor from Eric as loan collateral is true. Home Depot has the right to repossess the tractor if it was used as loan collateral and Eric cannot make the payments.
4) The statement that Home Depot can seize Eric's car and house as well as his tractor is false. Home Depot can only take action to recover the specific collateral associated with the loan, which in this case is the garden tractor.