[Repo] Meredith Sells Used Cars and Trucks

question 90

Multiple Choice

[Repo] Meredith sells used cars and trucks. She sold a used pick-up truck to Jill and a used convertible to Caleb. She properly obtained a security interest in both vehicles. Both Jill and Caleb defaulted on payments owed to Meredith for the vehicles. Meredith was under the belief that her only option was to take possession of the collateral. She decided to repossess Jill's pick-up at Jill's house. Meredith slipped into Jill's driveway after midnight and started the truck's engine. Jill immediately ran out and confronted Meredith. Meredith shoved Jill away and drove off in the pick-up truck. Meredith was able to repossess Caleb's convertible in a public parking lot with no altercation with him.
-Which statement is correct regarding Meredith's taking possession of Caleb's convertible?

• A) Meredith breached the peace because she did not provide Caleb prior notification that she was going to repossess the vehicle.
• B) Meredith breached the peace because she took the vehicle from a public lot.
• C) Meredith breached the peace unless she can establish that Caleb gave her prior permission to repossess the vehicle in a public lot.
• D) Meredith did not breach the peace because she acted in a reasonable manner in taking the collateral.
• E) Meredith did not breach the peace because Caleb sustained no documented physical injury.

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Definitions:

Warrants

Securities that give the holder the right, but not the obligation, to buy a company's stock at a predetermined price before a specified date.

Common Shares

Equity investments that represent ownership in a company, providing voting rights and potential dividends to shareholders.

Retained Earnings

The portion of a company's profits that is kept or retained and not paid out as dividends to shareholders.

Credit Card Receivables

The outstanding balances owed to a company from customers' credit card transactions, considered an asset.