Richard Silch purchased a camcorder at Sears Roebuck by charging it to his Sears charge account. Printed

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Richard Silch purchased a camcorder at Sears Roebuck by charging it to his Sears charge account. Printed on the face of the sales ticket made at that time was the following: This credit purchase is subject to the terms of my Sears Charge Agreement which is incorporated herein by reference and identified by the above account number. I grant Sears a security interest or lien in this merchandise, unless prohibited by law, until paid in full. Silch's signature appeared immediately below that language on the sales ticket. The ticket also contained the brand name of the camcorder and a stock number. Silch subsequently filed a Chapter 7 bankruptcy proceeding and was eventually discharged. Sears filed a petition to recover the camcorder from Silch, contending that it had a valid and enforceable security interest in the camcorder. Silch, in turn, contended that the sales ticket did not constitute a valid and enforceable security agreement. Does the sales ticket constitute a valid security agreement?

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Business Law The Ethical Global and E-Commerce Environment

ISBN: 978-0071317658

15th edition

Authors: Jane Mallor, James Barnes, Thomas Bowers, Arlen Langvardt

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