Michigan Collections Manager License Practice Test

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Michigan Collections Manager License Test with flashcards and multiple choice questions. Each question is equipped with hints and detailed explanations to enhance your understanding and readiness.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What restriction is included in an installment sales contract regarding repossession?

Repossession can occur only after notice
Repossession cannot be a breach of peace
Repossession must allow for seller retrieval
Repossession requires court approval

The correct answer is: Repossession cannot be a breach of peace

In the context of an installment sales contract, the correct restriction related to repossession is that repossession cannot breach the peace. This principle is rooted in both common law and the Uniform Commercial Code (UCC), which governs commercial transactions in the United States. The rationale behind this restriction is to ensure that the repossession process does not escalate into violence, disturbance, or unlawful behavior. If a seller or creditor attempts to reclaim property in a manner that incites conflict or violates public order—such as breaking into a property or using intimidation—the repossession can be deemed unlawful. This principle protects the rights of the debtor and preserves public safety and order. While other considerations regarding repossession may also be relevant, such as providing notice or ensuring that the process remains within specific legal frameworks, the critical focus in this restriction is the requirement to conduct repossession activities peacefully. This fosters a fair and lawful approach to debt recovery, which is essential for both parties in the transaction.