• Selected
• Entire List

Abstract:
Secured parties with motor vehicle collateral are disposing of their repossessed collateral on eBay Motors, the internet auction site of eBay.com. Article 9 of the Uniform Commercial Code does not validate or invalidate internet dispositions of collateral, nor does it adopt any specific requirements for internet dispositions. Thus, a secured creditor selling repossessed collateral on eBay Motors must satisfy the universal standards of Article 9 for a valid disposition - reasonable notification of the disposition and commercial reasonableness of all aspects of the disposition. Article 9 adopts detailed provisions for notification, but the boundaries of commercially reasonable are determined mainly by the courts.

In his article, eBay Auctions of Repossessed Motor Vehicles - A Template for Commercial Reasonableness Under Revised Article 9, Professor Nowka analyzes how the Article 9 standards for disposition sales of collateral affect secured creditors selling repossessed motor vehicles on eBay Motors. He articulates a rationale that upholds the commercial reasonableness of eBay Motors auctions, details the steps a secured creditor should take to achieve a commercially reasonable auction, and provides form notices and agreements a secured creditor can use to help ensure the auction complies with Article 9's standards.

security interests, default, disposition of collateral, eBay, Article 9