Textbook Problem

Which of the following is not a true statement about a mechanics hen?

a. This lien states that the shop may gain possession of the vehicle if the customer does not pay for the agreed-upon services.

c. The right to impose a mechanics lien can be exercised by a shop within 30 days after the services have been completed.

1. In most cases, the shops right to impose a lien on the vehicle being serviced must be acknowledged by the customer prior to beginning any services to the vehicle.

This clause ensures that the shop will receive some compensation for the work performed, whether or not the customer pays the bill.

To determine

The statement which is not true about mechanic’s lien.

Explanation of Solution

Given information:

1. The lien states that the shop may gain possession of the vehicle if the customer does not pay for the agreed-upon services.
2. The right to impose a mechanic’s lien can be exercised by a shop within 30days after the services have been completed.
3. In most cases, the shop’s right to impose a lien on the vehicle being serviced must be acknowledged by the customer prior to beginning any services to the vehicle.
4. This clause ensures that the shop will receive some compensation for the work performed, whether or not the customer pays the bill.

Mechanic’s lien is defined as the legal document that reserves the right to collect debt owed for maintenance or servicing of a vehicle. It contains all the rights that has been made before agreeing to pay for the service used to upgrade the condition of vehicle...