On July 6, 2000, Shannon Hicklin purchased a 1993 Ford Explorer under an installment sales contract. Payments

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On July 6, 2000, Shannon Hicklin purchased a 1993 Ford Explorer under an installment sales contract. Payments under the contract were assigned to Onyx Acceptance Corporation. Hicklin fell behind in payments, and, on February 11, 2004, Onyx repossessed the vehicle. Hicklin was three payments past due and owed $5,741.65 under the contract. At the time of repossession, the fair market value of the vehicle was $2,335, after deducting $1,365 in needed repairs and accounting for mileage. The vehicle was sold for $1,500 at private auction. After deducting the sales proceeds from the costs of repossession and sale and the contract balance, there remained a deficiency of $5,018.88. Onyx sued Hicklin to collect the deficiency. Hicklin denied liability on the ground that Onyx failed to sell the vehicle in a commercially reasonable manner as required by the Uniform Commercial Code. Is Onyx entitled to the full $5,018.88 deficiency? Why or why not? [Hicklin v. Onyx Acceptance Corp., 970 A.2d 244 (Del. 2009).]

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Dynamic Business Law The Essentials

ISBN: 978-1259917103

4th edition

Authors: Nancy Kubasek, Neil Browne, Daniel Herron

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