On Credit, Jill Carr purchased a $1,000 television set at Ryko Appliance Store. The store’s… 1 answer below »
On Credit, Jill Carr purchased a $1,000 television set at Ryko Appliance Store. The store's credit policy required Jill to give Ryko a security interest in the television set to secure her payment of the purchase price. thought she did not clearly comprehend the repossession procedures, Jill basically understood the terms; and she signed the credit slip and the security agreement on the reverse side. Jill's payments to Ryko, $40 per month, were to extend for three years, Jill made the first six payments without a problem, but then, beset with large medical bills, she defaulted on the seventh payment. Her payments up to that point had reduced her principal balance by approximately $180. Ryko exercised its option to reposses the set. Ryko's standard operating procedure was to offer repossessed sets at a special sale, to take the best price offered, and to make arrangements for the defaulting customer to pay any deficiency between the resale price and the balance due on the original selling price. But Marge Glass, the store manager, saw Jill's set and realized that it was just the type her husband wanted. she also knew that if she paid even a minimal price for the set, Ryko would eventually get the rest of the money from Jill. Thus, Marge paid Ryko $100 for the set and the store proceeded to make arrangements to collect the balance from Jill. Marge stated that $100 was the highest price anyone would have offered for the set and that her actions were, therefore, commercially reasonable. Social, Policy, and Ethical Considerations1. Is a store responsible for ensuring a customer's understanding of the nature and consequences of a sales transaction? Why? Why not?2. Did Marge and Ryko act ethically or legally? Explain. In what ways would Jill's full understanding of the repossession process change our answer?3. what ethical or social implications does Article 9 of the Uniform Commercial Code have in this situation?