business law

Secured Transactions in Consumer Purchases
Consider the following scenario: Janice buys a refrigerator on credit from Excelsior Appliances. Janice's sales agreement treats the appliance as collateral. Janice loses her job; so, she sells the refrigerator to Henry and at the same time quits making payments to Excelsior. Henry is unaware of Excelsior's interest when he buys the refrigerator from Janice.

a.When Excelsior tries to reclaim the refrigerator, the company discovers that Janice has sold the item to Henry. In your opinion, what do you think would be the fairest result?

b.Assume now that under the state law, Henry, as a good-faith purchaser who had no knowledge of Excelsior's prior interest got to keep the refrigerator. What remedy, if any, should Excelsior have against Janice?

c.Assume, instead, that Excelsior recovers the appliance from Janice and resells it. It is now a used refrigerator; therefore, the company recovers only $500 on resale while Janice still owes $750. What is Excelsior's remedy, if any, against Janice for the remaining money that Janice owes?

  1. 👍 0
  2. 👎 0
  3. 👁 227

Respond to this Question

First Name

Your Response

Similar Questions

  1. Math

    Janice thinks that 20 hundredths is equivalent to 2 thousandths because 20 hundreds is equal to 2 thousands. Use words and a place value chart to correct Janice’s error.

  2. buisness

    Read about Wanda’s complaint to the FDIC. What action did the regulator most likely take in this case? The FDIC found out that a company misreported information to a credit scoring company about Wanda. Wanda contacted the

  3. physics multiple choice

    A worker pushes horizontally on a 2000 N refrigerator on a kitchen floor with a force of 28.0 N. A. If the refrigerator moves forward, this person feels it pushing back with less than 28.0 N. B. The person always feels a 28.0 N

  4. math

    The lengths of two insects are given below. · Ladybug: 10 millimeters · Walking stick: 30 centimeters What is the difference in length of these two insects in millimeters? A 70 mm B 20 mm C 290 mm D 2,990 mm 35. Which statement

  1. mechanics

    Dylan hangs a calendar on a refrigerator with a magnetic hook. Unfortunately, the magnet is too weak, so the magnet and calendar slide down the side of the refrigerator to the floor with an acceleration of magnitude 3ms2. If the

  2. Advanced Algebra

    Krystal bought a refrigerator from a rental center for $1,050. She makes 16 monthly payments of $112.75 with her credit card. The rental center charges $1.25 for every purchase made with a credit card. What is the total cost of

  3. Life Management

    The following are available for assistance with the Lemon Law: a. consumer advocate groups b. departments of your State Attorney General's office c. legal aid d. all of the above*** This Act requires institutions disclose what

  4. Ed Tech

    Janice, who is 15, posts a picture of herself drinking alcohol and making an obscene gesture on her social networking page. Which of the following are potential consequences that could negatively impact her future? Select all that

  1. science

    h t t p: / / tinypic . co m/r/f2vw1w/3 In the link above (take out the spaces) there is supposed to be a picture representing a foodweb. 1. Which letter is the producer? Is it A? 2. I'm not sure what B and C would represent? A.

  2. math

    You are purchasing a car for $12,465.00 plus 5.65% sales tax. You make a $1,300.00 down payment and have a fair credit score. If you improved your credit score to good and paid $1,500 on your purchase, how much interest could you

  3. Business Math

    Three of every seven sales transactions at Dollar Discount are on credit cards. What percent of the transactions are NOT credit card sales? (Round percentages to the nearest tenth.)

  4. Physics

    A carnot refrigerator uses an ideal carnot cycle to cool its interior. The outside air has a temp of 304K and the refrigerator is kept at a temp of 279K. 1) what is the coefficient of performance of this refrigerator? 2) if the

You can view more similar questions or ask a new question.