Sale or Disposition
This page includes a writing template for analyzing this topic and usage notes to guide its application. In general, the template is designed to serve as a starting point for your analysis. It should be adapted to fit the specific facts of your case and your professor’s preferences.
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Writing Template
Issue
I: The issue is whether the secured party properly sold or disposed of the property.
Analysis
R: A secured party may sell or otherwise dispose of collateral as long as the sale is conducted (1) in a commercially reasonable manner and with (2) written notice to the debtor and other required parties.
1. Commercially Reasonable
R: A sale or disposition meets the “commercially reasonable” standard if it is executed either (1) in the usual manner within a recognized market at the current market price, or (2) in a manner consistent with reasonable commercial practices specific to that property type.
A: Here, [apply rule to facts].
C: Therefore, the [sale/disposition] [was/was not] commercially reasonable.
2. Written Notice
R: The secured party’s written notice must (1) be sent a reasonable time before the sale or disposition and must include (2) the debtor’s name and contact details, (3) a description of the collateral, (4) an indication of the method and type of disposition (e.g., public or private), and (5) a statement notifying the debtor of the right to an accounting.
A: Here, [apply rule to facts].
a. Collateral Type
R: If the collateral is a consumer good, the written notice must (1) be sent to the debtor, and it must (2) include a detailed explanation of the deficiency that caused the default, along with (3) a phone number the debtor can call for redemption or disposition information. For non-consumer goods, the secured party is only required to notify other secured parties of the impending sale.
A: Here, [apply rule to facts].
C: Therefore, the written notice was [properly/improperly] distributed.
Conclusion
C: Therefore, since both elements [are/are not] satisfied, the secured party [properly/improperly] sold or disposed of the property, and the security interest and all subordinate security interests [are/are not] discharged.
Debtor's Remedies
R: If the sale does not meet commercially reasonable standards, there is a rebuttable presumption that the sale proceeds equal the debt amount, limiting the secured party’s ability to claim a deficiency. Additionally, if the secured party violates other procedural or notice requirements, the debtor may seek injunctive relief or other remedies.
A: Here, [apply rules to facts].
C: Therefore, [it is presumed the sales proceeds are equal to the amount of the debt/the debtor may seek injunctive relief].
Usage Notes
JurisJotter templates synthesize legal principles into a practical format that supports the development of well-structured, point-rich analyses in a timed exam.
The template features (1) headers identifying the overall issue, analysis, and conclusion. If the analysis begins with an umbrella rule that identifies elements, factors, or steps of the analysis, it will be followed by subheaders that signpost the analysis of each component.
The template also features (2) IRAC labels at the beginning of each paragraph. These headers and labels are included for educational purposes, offering guidance on structuring your analysis. Your usage of the headers is optional but can be helpful to readers. We advise against including the IRAC labels in submitted work.
The templates serve as a general guide for writing and should be adapted to align with (1) your specific factual circumstances and (2) your professor’s preferences, particularly if your professor provides explicit formulations of rules or analyses. For example, you may add or subtract an element or modify its language. Regardless of whether your professor provides explicit formulations, (3) this template will assist you in crafting point-rich analyses.
Please note that these templates are writing aids and not finished products. They are efficiently designed for exam essays to demonstrate conceptual understanding; thus, they are not comprehensive outlines with historical context or dicta.
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