Spot Delivery in the North Carolina Automobile Industry: A Framework for Legal Analysis
Vol. 67 No. 1; Consumer Finance Law Quarterly Report, 2013
9 Pages Posted: 11 Jan 2014 Last revised: 3 Sep 2014
Date Written: December 5, 2013
This article describes the legal framework for an analysis of spot delivery lawsuits under North Carolina law. This analysis concludes that a credit sale transaction (e.g., pursuant to a RISC) is a conditional sale, and therefore title passes to the buyer at the time the vehicle is delivered. It recognizes that the UCC controls a vehicle sale and the question of when ownership passes to the buyer, not the NCMVA. It concludes that ownership passes at the time the buyer signs the RISC and the vehicle is delivered. It concludes that any conditional delivery agreement is inadmissible and void upon the signing of the RISC by the buyer.
Keywords: Dunn-Benson Ford, Hicks, buyers order, Spot Delivery, Yo Yo, Retail Installment Contract, UCC, TILA, Automobile, Car, dealership, repossess, third party finance
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