North Star Motors, Inc., sold used cars. To finance the purchase of the used cars, North Star borrowed funds from ReFinance Co. When North Star defaulted on its loans, ReFinance took possession of the dealer’s inventory and notified it that the cars would be sold.

In the auto industry, there are many ways to resell cars, including individual retail sales and wholesale sales of sets of vehicles. Most of North Star’s repossessed vehicles were sold individually, but those that had high mileage or were in poor condition were sold to wholesalers in batches. The total sales did not amount to the full debt, so ReFinance held North Star liable for the difference.

Were these sales commercially reasonable? Yes.

Once default occurs, the secured party can obtain possession of the collateral. A secured party who does not choose to retain the collateral must dispose of it in a commercially reasonable manner. Selling the collateral using the same ______________ that is typical for selling similar property fulfills this requirement. Generally, ______________ of the sale must be sent to the debtor.

Often, after proper disposition of the collateral, the secured party has not collected all that the debtor still owes. Unless otherwise agreed, the debtor is liable for any ______________.