Person W purchased a list of household items on credit from company WT. Company WT retained the rights to repossess an item in the case of default of an instalment and every instalment would be prorated to all the items such that unpaid balance would remain on all items until the last instalment is paid in full. Person W defaulted on a single payment and company WT sought to repossess the items purchased by person W. To discuss: If company WT is right to repossess all the items.

Question

Want to see the full answer?

Answer 1

Question

Chapter 13, Problem 21CP

Summary Introduction

Case summary:

Person W purchased a list of household items on credit from company WT. Company WT retained the rights to repossess an item in the case of default of an instalment and every instalment would be prorated to all the items such that unpaid balance would remain on all items until the last instalment is paid in full. Person W defaulted on a single payment and company WT sought to repossess the items purchased by person W.

To discuss: If company WT is right to repossess all the items.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

New West Fruit Corporation (New West) and Coastal Berry Corporation are both brokers of fresh strawberries. In the second half of 2012, New West’s predecessor, Monc’s Consolidated Produce, Inc., loaned money and strawberry plants to a group of strawberry growers known as Cooperativa La Paz (La Paz). In September 2012, Monc’s and La Paz signed a “Sales and Marketing Agreement” to allow Monc’s the exclusive right to market the strawberries grown by La Paz during the 2012–2014 season. The agreement did not mention the advances of money or plants, but did give Monc’s a security interest in all crops and proceeds on specified property in the 2013–2014 season. The financing statement was properly signed and filed. Monc’s closed down in January 2014, and its assets were assigned to New West. In April, New West learned that La Paz had agreed to market its 2014 crop through Coastal Berry. New West immediately arranged a meeting to advise the Coastal Berry officers of its contract with the…

Joe owes Barry 100,000. Joe enters into an agreement with Citibank to borrow 100,000. Joe intends to use the loan proceeds to repay Barry. Citibank has does not know that Joe planned to pay Barry with the proceeds. Citibank agrees to make the loan but Citibank breaches its contract with Joe and does not lend him the money. Joe defaults on his loan to Barry, so Barry sues Citibank because they breached their contract with Joe. Barry argues that he is a third party beneficiary of Joe’s and Citibank’s contract. What is the outcome of Joe’s suit?

A 72,000 square foot multi-tenant retail property with an Equinox gym and a Wendy’s restaurant in Columbus, Ohio was recently sold for $7,200,000. Selling costs, including a brokerage fee, totaled five percent of the purchase price. The mortgage loan balance at the time of sale was $3,760,000. The property was purchased eight years earlier for $4,200,000, and annual depreciation deductions of $120,000 were taken each year for tax purposes. If the combined effective federal and state income tax rates on capital gains and tax depreciation recapture is 30%, what was the after-tax cash flow from the sale of the property? a. $2,288,000 b. $2,252,000 c. $2,540,000 d. $2,000,000