Maddog Repo is in the business of repossessing cars from owners that have defaulted on their loans. Westerman bank contacts Maddog Repo and asks them to recover a car in the possession of Cody Carson, and they give Maddog both his home and work address. Maddog finds the car at Cody's workplace, but it is inside a fenced lot with a lock. Maddog uses bolt cutters to break the lock and recover the car from inside the fence. Which of the following is true?
| | a. Maddog Repo did commit a breach of the peace when they broke into a locked, private parking area. | |
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| | b. Maddog Repo can use any means necessary to recover the car and need to only replace the lock that they broke with the bolt cutters. | |
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| | c. Maddog Repo did not commit a breach of the peace because they did not threaten or harm anyone during the repossession process. | |
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| | d. The bank is not entitled to take possession of the car. |
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Erin took her antique clock to Searcy's Repair shop to be cleaned and repaired. Mr. Searcy called her after two weeks and told her the clock was ready to be picked up and the bill would be $250. Erin said "okay" but did not come in. Each month, for six months, Mr. Searcy left a message on her phone and even sent her three notices to the address she left asking her to pick up the clock. Six months later, a customer comes in and inquires about purchasing the clock. Which of the following options does Mr. Searcy have?
| | a. Mr. Searcy has no options; the repair shop is required by law to hold the clock indefinitely because Erin did not enter into a sales contract with them. | |
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| | b. The repair shop cannot sell the clock because Mr. Searcy is not the rightful owner. | |
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| | c. The repair shop can sell the clock to the new customer. | |
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| | d. The repair shop can sell the clock, but only if Mr. Searcy gets a written or an oral permission from Erin. |
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Nicole borrowed $1,000 from Landon. In exchange, she offered her big screen television as collateral, which Landon got in his possession. Nicole paid back $750 to Landon and asked that he give her the TV back so that she could have friends over to watch the Super Bowl. He agrees and returns the TV to Nicole. What type of perfection does Landon have?
| | a. Perfection by creditor's possession | |
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| | b. Perfection by filing a financial statement | |
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| | d. Landon does not have perfection |
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