For Med Inc and David Anderson executed a loan and security
For-Med, Inc., and David Anderson executed a loan and security agreement in the amount of $79,924.89 with First Westside Bank. Anderson offered his 1978 Blue Bird motor home as collateral. After Anderson and For-Med defaulted on the loan, First Westside repossessed the motor home and sold it for $60,000. The motor home was very large, and First Westside claimed that it could not be left on its parking lot for show. Therefore, First Westside did not officially advertise that the motor vehicle was for sale. Rather, bids were solicited by word of mouth from financial institutions, dealers, and customers. First Westside sued For-Med and David Anderson to collect the difference between the loan and the sale price of the motor home. The court found in favor of First West- side. On appeal, For-Med and Anderson argued that the sale of the collateral was not commercially reasonable because First Westside failed to adequately advertise the motor home. Therefore, For-Med and Anderson believed that First Westside failed to obtain the best price under the circumstances. How do you think the court decided on appeal? Was the sale price of the collateral commercially unreasonable?
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