Last Fall, Mrs. Edwards purchased two expensive dresses from Fashions Galore on a conditional sale contract, Now, five months later, she has defaulted on her payments. Fashion Galore should
A) keep all the proceeds from the repossession and resale of the goods.
B) obtain possession as the bailee of the goods purchased.
C) obtain a court order if Mrs. Edwards refuses to give up possession.
D) sue the conditional buyer for the face value of the note.
E) automatically, at the point of default, get title back from Mrs. Edward.

Question

Quizplus · Accepted Answer

Fashions Galore cannot simply repossess the dresses without a court order, as that would be considered self-help and may be illegal. They must first obtain a court order if Mrs. Edwards refuses to give up possession. Once they have the court order, they can legally repossess the dresses and sell them to recover the remaining balance owed.