Question: Suppose that after KDM Electronics repossesses the surround-sound system, it decides to keep the system rather than sell it. Can KDM do this under Article

Suppose that after KDM Electronics repossesses the surround-sound system, it decides to keep the system rather than sell it. Can KDM do this under Article 9? Why or why not?
Paul Barton owned a small property-management company, doing business as Brighton Homes. In October, Barton went on a spending spree. First, he bought a Bose surround sound system for his home from KDM Electronics. The next day, he purchased a Wilderness Systems kayak and roof rack from Outdoor Outfitters, and the day after that he bought a new Toyota 4-Runner financed through Bridgeport Auto. Two weeks later, Barton purchased six new iMac computers for his office, also from KDM Electronics. Barton bought each of these items under an installment sale contract. Six months later, Barton’s property-management business was failing, and he could not make the payments due on any of these purchases and thus defaulted on the loans.

Step by Step Solution

★★★★★

3.43 Rating (166 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Unless Barton has paid 60 percent or more of the purchase price KDM Electronics may keep the surr... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

111-L-B-L-D-C-R (68).docx

120 KBs Word File

Students Have Also Explored These Related Business Law Questions!

Indicate whether each of these items is an asset (A), a liability (L), or part of stockholders equity (SE). (a) Accounts receivable. (b) Salaries and wages payable. (c) Equipment. (d) Supplies. (e)...

Each of these items must be considered in preparing a statement of cash flows for Kiner Co. for the year ended December 31, 2010. For each item, state how it should be shown in the statement of cash...

Each of these items must be considered in preparing a statement of cash flows for Nemke Co. for the year ended December 31, 2012. For each item, state how it should be shown in the statement of cash...

Suppose that after KDM Electronics repossesses the surround-sound system, it decides to keep the system rather than sell it. Can KDM do this under Article 9? Why or why not?

Unit 5 Case Study Assignment Respond to the following scenario: Recently, Guy Bailey recently opened a one-person consulting firm which he owns and operates and is doing business as Valley...

Respond to the following scenario: Recently, Guy Bailey recently opened a one-person consulting firm which he owns and operates and is doing business as Valley Consultants. The business was blessed...

Consider the pizza market in a small college town. Analyze this market based on the following assumptions: i. The market is in long-run equilibrium. ii. Each pizza shop sells 100 pizzas per week....

Startup, Inc. is a newly created company whose only asset is $900,000 in cash and whose only liability is 20,000 shares of common stock, with a current price of $45. The firm is considering an...

Even at his age, Sam Nugent is still an active salesman.

6. Are both registers and special journals necessary?

As a matter of public policy, personal injury tort claims cannot be assigned. This public policy is wrong and should be changed. Explain

What advantage does the discharge of a contractual obligation under the rule applied in this case offer to the parties to the contract? Discuss. Did HRB violate any ethical duty by refusing to pay...

1. In this case, what was the basis for the students' suit? 2. What was the college's argument against the students' allegations? 3. In whose favor did the court rule? Why? What remains to be...

Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 $424,000 $39,500 1 44,500 20,300 2 61,500 13,400 3 78,500 18,100 4 539,000 14,900 The required return on...

Please calculate the forward rate between the two given spot rates. (ex: if you have a 1y spot and a 5y spot, you are calculating the 4y forward) 3 year spot of 5.1% 6 year spot of 1.0% Enter full...

Consider a sample with a mean of 60 and a standard deviation of 4. Use Chebyshev's theorem to determine the percentage of the data within each of the following ranges (to the nearest whole number)....