Question
John purchased a car from Epic Auto. The purchase was financed and John paid $5,000 as a down payment and agreed to payments of $500
John purchased a car from Epic Auto. The purchase was financed and John paid $5,000 as a down payment and agreed to payments of $500 per month for 48 months. The financing company (lender) was LKB. To get the down payment, John borrowed $5,000 from his father, Paul, on March 20, 2021. John purchased the car on April 2, 2021, and LKB registered the loan in accordance with the PPSA on that day.
1) Identify the name(s) of the secured lender(s)?
2) Assume Paul knew the loan was to purchase a car, if John refused to pay Paul back could Paul have the car seized and sold?
3) Assume John had the car repaired but could not afford to pay the repair bill, what steps could the mechanic take to ensure payment?
4) If John lent the car to his friend Sara and it was stolen what test would the court apply to determinethe standard forliability (explain)
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