Erin bought a new car for her catering business from Davis Motors Inc for $20 000. Under
Question:
Erin bought a new car for her catering business from Davis Motors Inc for $20 000. Under the terms of the purchase, Erin paid $5000 down and agreed to pay the balance in regular monthly instalments. To secure her obligation, Erin gave Davis a security interest in the car. Erin defaulted on the payments when she had just $3000 left to pay. Acting under its security agreement, Davis repossessed the car. The manager of Davis liked Erin's car and offered to buy it from Davis for $7500. Davis agreed. When Davis received the money from the manager, it applied $3000 to the loan and paid the balance of $4500 to Erin. Erin is unhappy because she recently saw an identical car advertised for $10 000.
Is there any basis upon which Erin could complain about what Davis has done?
Step by Step Answer:
Managing the Law The Legal Aspects of Doing Business
ISBN: 978-0133847154
5th edition
Authors: Mitchell McInnes, Ian R. Kerr, J. Anthony VanDuzer