https://www.topgradeaccountants.com/wp-content/uploads/2020/07/LOGO-TG1.png 0 0 milton https://www.topgradeaccountants.com/wp-content/uploads/2020/07/LOGO-TG1.png milton2020-10-08 07:06:502020-10-08 07:06:50Part I: Katrina purchased a used, 2010 Toyota RAV from a “Buy Here Pay Here Now” automobile dealer.
Part I: Katrina purchased a used, 2010 Toyota RAV from a “Buy Here Pay Here Now” automobile dealer. Although Katrina signed many documents, she did not read them before signing them. Mainly, because she did not understand the terms and phrases.Katrina made the first three payments and then lost her job. She could not make the fourth payment. While sitting in her car in her driveway, “Repo Mann” pulled in behind her and hooked her car to the tow truck. Repo Man told Katrina she should get out of the vehicle, but she refused. So, Repo Mann towed the car, with Katrina sitting in the driver’s seat. When he arrived at the tow lot, Katrina refused to exit the car. She locked the doors and would not get out. Repo Mann shrugged his shoulders and stated, “Fine, you can sit in the car and rot.”After about two hours, Katrina got out of the car and went into the two office. Repo Mann told her she must pay the entire balance due on the loan or the car would be sold at auction. Katrina did not have money to pay the full balance. Katrina believes Repo Mann violated commercial laws in repossessing her vehicle.Applying what you learned about contracts, negotiable instruments, and the Uniform Commercial Code, discuss the likely outcome if Katrina suesRepoMann. Consider in your discussion, the law that applies, Katrina’s andRepoMann’s duties, whether Katrina can get the car back, and if she cannot, whatRepoMann must do.Part II: Katrina still could not find work after six months. Her creditors are knocking at the door. In addition to several credit card bills and Katrina’s car loan, she has about $35,000 in student loans. Katrina wants to file for bankruptcy relief and she wants to discharge her student loans. Now, you took Business Law II as a MCC student and you learned that the Bankruptcy Code does not allow discharge of students loans unless refusing to allow discharge will cause an undue hardship to the debtor and his or her dependents. Bankruptcy courts strictly construe undue hardship and generally, it is extremely difficult to prove unless the debtor can show “severe” physical or mental disability or that the debtor cannot pay for basic necessaries of life, e.g. food or shelter.Do you think this is good public policy? Why or why not?Is there a difference between a debtor who has $50,000 in credit cards discharged but not $50,000 in student loan debt? Why or why not?