Sabra carries on a business selling women's clothing at a retail store. She borrowed $10 000 from the Bank of Nova Scotia and gave the Bank a security interest in all of her inventory. The Bank filed a financing statement to register its interest. Sabra's entire inventory was bought on credit. The supplier retained title in the clothes as security for the payment of the purchase price. The supplier did not perfect its security interest. About $5000 worth of inventory had not been paid for when Sabra defaulted on her loan. She had $8000 left to pay on the loan and the Bank seized all her inventory. Sabra thinks that the inventory was worth in excess of $12 000 if it were sold at full retail prices. The Bank found another store to buy it for $9000. Should Sabra complain about the Bank's disposition of the collateral?

Question

Quizplus · Accepted Answer

The Answer of Sabra carries on a business selling women's clothing at a retail store. She borrowed $10 000 from the Bank of Nova Scotia and gave the Bank a security interest in all of her inventory. The Bank filed a financing statement to register its interest. Sabra's entire inventory was bought on credit. The supplier retained title in the clothes as security for the payment of the purchase price. The supplier did not perfect its security interest. About $5000 worth of inventory had not been paid for when Sabra defaulted on her loan. She had $8000 left to pay on the loan and the Bank seized all her inventory. Sabra thinks that the inventory was worth in excess of $12 000 if it were sold at full retail prices. The Bank found another store to buy it for $9000. Should Sabra complain about the Bank's disposition of the collateral?

Sabra Carries on a Business Selling Women's Clothing at a Retail