Gordan and Angie purchased a refrigerator, washer, and dryer for their new home on credit from...

Transcribed Image Text:

Gordan and Angie purchased a refrigerator, washer, and dryer for their new home on credit from Discount Appliance City using the appliances as collateral. Three months later, the appliance wholesaler, Appliance Inc., appeared at their front door wanting to reclaim the appliances because Discount Appliance City had defaulted on its payments for the appliances. Appliance Inc. contends that it has a security interest in the appliances and has the right to take possession of them. Is Appliance Inc. correct in this assumption? Why or why not? Gordan and Angie purchased a refrigerator, washer, and dryer for their new home on credit from Discount Appliance City using the appliances as collateral. Three months later, the appliance wholesaler, Appliance Inc., appeared at their front door wanting to reclaim the appliances because Discount Appliance City had defaulted on its payments for the appliances. Appliance Inc. contends that it has a security interest in the appliances and has the right to take possession of them. Is Appliance Inc. correct in this assumption? Why or why not?

Answer rating: 100% (QA)

The situation described involves the concept of security interests and the rights of a secured party in the context of a security agreement Whether Ap... View the full answer