Final answer:
A corporate seller can exercise an unpaid seller's lien on a defaulting corporation by utilizing the legal concept of a lien. This allows the seller to retain possession of goods until payment is made.
Step-by-step explanation:
A corporate seller can exercise an unpaid seller's lien on a defaulting corporation by utilizing the legal concept of a lien. A lien is a legal right that allows a seller to retain possession of goods until payment is made. In the case of a defaulting corporation, the corporate seller can withhold delivery of the goods until the outstanding payment is received.
For example, let's say that Company A sells goods to Company B on credit terms. If Company B fails to make the payment in accordance with the agreed-upon terms, Company A can exercise its unpaid seller's lien by refusing to deliver any further goods until the payment for the outstanding balance is made.
In summary, a corporate seller can exercise an unpaid seller's lien on a defaulting corporation by using the legal right to withhold delivery of goods until payment is made.