The international harvester dealership in sunny-side
Course:- Business Law and Ethics
Reference No.:- EM13754142

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Business Law and Ethics

Purchase Money Security Interest:
Prior Brothers, Inc. (PBI) began financing its farming operations through Bank of California, N.A. (Bank). Bank's loans were secured by PBI's equipment and after-acquired property. Bank immediately filed a financing statement, perfecting its security interest. Two years later, PBI contacted the International Harvester dealership in Sunny-side, Washington, about the purchase of a new tractor. A retail installment contract for a model 1066 International Harvester tractor was executed. PBI took delivery of the tractor "on approval," agreeing that if it decided to purchase the tractor, it would inform the dealership of its intention and would send a $6,000 down payment. The dealership received a $6,000 check. The dealership immediately filed a financing statement concerning the tractor. Subsequently, when PBI went into receivership, the dealership filed a complaint, asking the court to declare that its purchase money security interest in the tractor had priority over Bank's security interest. Does it? In the Matter of Prior Brothers, Inc., 29 Wn.App. 905, 632 P.2d 522, Web 1981 Wash.App. Lexis 2507 (Court of Appeals of Washington)

Question 27.7 Buyer in the Ordinary Course of Business Heritage Ford Lincoln Mercury, Inc. (Heritage) was in the business of selling new cars. Heritage entered into an agreement with Ford Motor Credit Company (Ford), whereby Ford extended a continuing line of credit to Heritage to purchase vehicles. Heritage granted Ford a purchase money security interest in all motor vehicles it owned and thereafter acquired and in all proceeds from the sale of such motor vehicles. Ford immediately filed its financing statement with the secretary of state. When the dealership experienced financial trouble, two Heritage officers decided to double finance certain new cars by issuing dealer papers to themselves and obtaining financing for two new cars from First National Bank & Trust Company of El Dorado (Bank). The loan proceeds were deposited in the dealership's account to help with its financial difficulties. The cars were available for sale. When the dealership closed its doors and turned over the car inventory to Ford, Bank alleged that it had priority over Ford because the Heritage officers were buyers in the ordinary course of business. Who wins? First National Bank and Trust Company of El Dorado v. Ford Motor Credit Company, 231 Kan. 431, 646 P.2d 1057, Web 1982 Kan. Lexis 280 (Supreme Court of Kansas) 

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Business Law and Ethics) Materials
Kevingrove Art Gallery falsely tells art collectors that many artworks being sold by Yesse Art Gallery are forgeries. Analyze the options that Yesse Art Gallery has to bri
Research the history, examples, causes, impacts and ethical issues surrounding the subject. Be sure to understand the arguments being used by all parties. There may be more
Search the Internet for specific careers that are associated with the career opportunity areas discussed in the (See career listed below). Discuss the characteristics of the
Using the internet, research a contract issue. This can be a breach of contract case or some other contract dispute. Use some of the terminology from the textbook to help yo
Would an organizational background statement be of value in evaluating a potential grant program in a brand new endeavor? An organization that does not have a strong track re
Give an example of a situation in the criminal justice field in which a moral or ethical dilemma could be presented to you. Provide factual detail for your situation. For th
What would be the educational level you would recommend for the beginner investigator to possess before being accepted into the unit? Why? How would prior experience in the
On April 5, 2009, Bill purchased 55,000 gallons of high grade fuel oil from Tom (a competitor of Sam). The cost was Tom's regular price of $20.00 per gallon, although Bill a