Law Commons^™

Using An Online Auction To Sell Article 9 Collateral, Michael Korybut

All Faculty Scholarship

This short article discusses selected issues under Article 9 of the Uniform Commercial Code with respect to a secured party using an online auction like eBay to sell repossessed collateral. In particular, the article analyzes certain potential limitations imposed by Article 9's commercial reasonableness standard and its notice of sale requirement.

Article 9'S Incorporation Strategy And Novel, New Markets For Collateral: A Theory Of Non-Adoption, Michael Korybut

All Faculty Scholarship

Online auctions like eBay are heralded widely as efficient, robust markets through which millions of businesses and people have sold billions of dollars of all types of property. Yet U.C.C. Article 9 secured parties apparently are only slowly and anemically adopting eBay or other online auctions to sell repossessed property (collateral) and are sticking instead to conventional, traditional sale methods. The apparent slow and anemic adoption of eBay and other online auctions by Article 9 secured creditors suggests a failure of the commercial reasonableness standard's incorporation strategy of new, efficient markets and its price-maximization goal. The Article proposes a non-adoption …

Searching For Commercial Reasonableness Under The Revised Article 9, Michael Korybut

All Faculty Scholarship

Under U.C.C. Article 9, a secured party selling repossessed collateral must conduct a commercially reasonable sale. Under the old Article 9, courts and commentators debated the question of whether the foreclosure sale process and its procedural regularity should measure the sale's commercial reasonableness or whether instead the main focus of inquiry should be the reasonableness of the proceeds produced by the sale. This question spawned conflicting and non-uniform judicial approaches, most simply described as the "procedures test" versus "proceeds test."

In 2001 Article 9 was revised. The revisions included changes that addressed, but did not explicitly resolve, the question of …

Searching For Commercial Reasonableness Under The Revised Article 9, Michael Korybut

All Faculty Scholarship

Under U.C.C. Article 9, a secured party selling repossessed collateral must conduct a commercially reasonable sale. Under the old Article 9, courts and commentators debated the question of whether the foreclosure sale process and its procedural regularity should measure the sale's commercial reasonableness or whether instead the main focus of inquiry should be the reasonableness of the proceeds produced by the sale. This question spawned conflicting and non-uniform judicial approaches, most simply described as the "procedures test" versus "proceeds test."

In 2001 Article 9 was revised. The revisions included changes that addressed, but did not explicitly resolve, the question of …