This action arises out of plaintiffs attempt to recover from defendant KPS, Inc. a VCR which plaintiff

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This action arises out of plaintiff’s attempt to recover from defendant KPS, Inc. a VCR which plaintiff had sold to defendant Burns and which Burns had immediately pawned at the Kendale Pawn Shop. Plaintiff filed a complaint in small claims court, and the magistrate, after a hearing on 17 February 1992, entered judgment denying plaintiff recovery of the VCR. Plaintiff appealed to the district court. Judge William A. Christian, sitting without a jury, entered judgment denying plaintiff recovery and dismissing the action. From this judgment, plaintiff appeals.

   Plaintiff offers one argument raising the issue of whether it was entitled to recover from defendant pawn shop a VCR plaintiff had sold to defendant Burns under a purchase money security agreement. * * *

Plaintiff argues that the judgment denying it recovery of the VCR contravened Article 9 of the Uniform Commercial Code, [citation]. We agree. At the time defendant Burns purchased the VCR from plaintiff, he signed a purchase money security agreement, thereby granting plaintiff a purchase money security interest in the VCR. [UCC] §9–107 [Revised §9–103]. Since a VCR is a consumer good, [UCC] §9–109(1) [Revised §9–102(a)(23)], plain-tiff did not have to file a financing statement in order to perfect its purchase money security interest in the VCR. [UCC] §9–302(1)(d) [Revised §9–309]. Defendant Burns failed to make any further payments for the VCR and defaulted on the security agreement. Therefore, plaintiff was entitled to recover possession of the VCR when it filed its action in small claims court. [UCC] §9–501 [Revised §9–601], 9–503 [Revised 9–609]. Accordingly, we hold that the trial court erred in dismissing plaintiff’s claim to recover possession of the VCR.

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   For the foregoing reasons, we reverse the judgment of the trial court and remand for entry of judgment in favor of plaintiff.

   Reversed. 

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Smith and Roberson Business Law

ISBN: 978-0538473637

15th Edition

Authors: Richard A. Mann, Barry S. Roberts

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