Case Study: Auto Financing Corp. v D.Z. Motors
This case is about a luxury car dealer who kept a Bentley (and later a Mercedes) his dealership had financed and then bought it himself securing a personal car loan to purchase it from his own dealership? Who has priority? The dealership’s supplier and its security interest or the purchase money security interest holder who provided the car loan? This case study goes through the court's application of the applicable UCC sections and focuses on the priority rules for secured transactions.
The case can be found here: