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Show MONDAY, SEPTEMBER INTERMOUNTAIN COMMERCIAL RECORD PAGE TWELVE In The Supreme Court of The State SO, 1974 Utah off 4, which defines the term is in turn assisted by another section, "seasonably" as a "reasonable time." Unless it is otherwise stated or agreed upon by the parties, what is a "reasonable time" is a question of fact to be determined from the circumstances. security agreement (chattel mortgage) to South Davis Bank they only 70A-1-20- had the home furnishings on approval, and had not acquired any ownership interest therein; that they thus mortgaged nothing to South Davis Bank and there was therefore no encumbrance, wherefore Jensen Interiors had not violated its covenant. Some of the particular facts to be noted here are that the draperies and carpeting had been tailored to and installed in the house, and that over two months had elapsed without the buyer (Gerbers) notifying the seller (Jensen Interiors) of disapproval. These facts, with others unnecessary to detail, provide a reasonable basis to support the view that there had been a "failure seasonably to notify the seller of election to return the goods"; and that under the statute quoted above there was deemed to be an "acceptance" of the home furnishings by the Gerbers; and that this occurred prior to April 23, when they' executed the security agreement (chattel mortgage) to South Davis Bank. preliminary observation which has a general bearing on this problem is that ordinarily where one of two innocent parties must suffer a loss, it should be borne by the one whose conduct created the. circumstances which permitted the loss to occur. But here there are other A and more important considerations which provide the controlling solution to the problem confronted here. Pertinent to the question above stated are certain sections of the Uniform Commercial Code (herein U. C. C. ). "Sale on Approval" is defined in Section 70 A-- 2 326, U.C. A. 1953: -- The next point of inquiry is: whether the proper steps had been taken of to perfect a security interest in the South Davis Bank. Section 70A-9-1the U. C. A. provides that a security interest arising under the chapter on Sales (70A-- 2) is subject to the provisions in the chapter on Secured Transactions Unless otherwise agreed, if delivered goods may be returned by the buyer even though they, conform to the contract, the transaction is (a) a "sale on approval" if the goods are delivered primarily for use, (2) Except as provided in subsection (3), goods held on approval are not subject to the claims of the buyer's creditors until acceptance; (1) 13 if the debtor (Gerbers), as was the case here, is in possession. Therefore, looking to the chapter on secured transactions, it is noted that Sections and require that four steps are necessary to create a valid and enforceable security interest: (1) That the parties enter into a written security agreement; (2) that it be signed by the debtor (Gerbers), or that possession of the property be given to the creditor; (3) that the debtor has acquired rights therein; and (4) that value be given. Reverting to the facts as found by the trial court, it is clear that the 23 security requirements just stated were fulfilled in connection with the April agreement to the South Davis Bank. By the passing of a reasonable time he deemed the acceptance by the Gerbers had occurred; the agreement was in South Davis writing signed by the debtors, Gerbers; and value was given by the of purcontract Bank advancing the $11, 000. On the other hand, the Gerber chase and security agreement with Jensen Interiors was not executed until three weeks later. May 13, 1969. The general rule is that as between security interests in the same property, the one prior in time ordinarily takes preference over a later one, ' On the basis of what we have said herein, it is our conclusion that there is a reasonable basis in the evidence; and under the applicable rules of law, to support the determination made by the trial court that the security interest (chattel mortgage) which Gerbers executed to the South Davis Bank on March 26, 1969, constituted an encumbrance upon the home furnishings; and that this having occurred prior to May 23, 1969, when Jensen assigned Gerbers' contract to the Valley Bank, the warranty against encumbrances was breached. Therefore the judgment against Jensen Interiors for damages for breach of warranty is justified. (All emphasis ours.) ... 70A-9-2- 70A-9-2- ... Under the foregoing section, whether Gerbers had acquired an ownership interest depends upon whether they had "accepted" the furnishings which had been placed in their home "on approval. " For further help we look to another section of that code which defines "acceptance": " i Sec. 70A-2-32- Special incidents of sale on approval 7. and sale or return. - . (1) Under a sale on approval unless otherwise agreed -- use of the goods consistent with the purpose of trial is not acceptance but failure seasonably to notify the seller of election to return the goods is acceptance. . . . (b) The correct interpretation and application of the language "failure seasonably to notify the seller" of election to return the goods is acceptance T. 6A Moore's Federal Practice, para. 59.09(4), at 7. 5. E.g. , see Johnson v. Doctorman, 23 Utah 2d 292, 462 59-21- P. 2d 169, wherein a unanimous court reaffirmed this principle stating: ". . . it is necessary that the trial judge have this discretionary power so he can fulfill his duty of general supervision over legal proceedings and have a remedy to apply when he is convinced that there has been substantial and prejudicial error, or the judgment is contrary to the evidence, or the law, or for any other reason there has been a miscarriage of justice"; and see 58 Am. Jur. 2d, Sec. 11, at p. 196. Murray City Court CALVIN to 410- - KYREMES, DEMETRI0S 1322 pltf; DOROTHY, SLC, UT 9-1- 9-7 t Her 65658 Doc Cdt vs JOHN 256 Helm ' ifhh 15; 9-1- 7-7 chattels. HHG, 412- - BESSEY, MIKE N. 250 W., Co; IRVIN H. i 1 S. 4180 W., SLC, to Zlniks; colt OF UTAH, I., 4 03 --GOODWIN, IRA 6481 S. 990 W., Mur, Ut to Wlkr Bk & Trst Co; unlisted. 404- -HOGAN, S. DAVID, 4657 S. 3250 W., SLC, UT to Wlkr Bk & TrstCo; boat, mtr, 405-HASSA- trlr. LARRY, 4327 S. 2900 E., SLC, UT 84117 to Wlkr Bk & Trst Co; trlr. boat, mtr, 406- -ANDERS0N, mtr, trlr. ROBERT L. , 3168 S. 3780 W., SLC, Wlkr Bk & Trst Co; UT mtr, trlr. 408 - BARRAC NANCY, Bntfl, to boat, , RALPH T. 6. 3037 S. Davis Blvd., to Gen Cr Co; HHG. 409 - RYAN, 3535 84117 84070 to Liberty Loan Corp; furn. 425-HAWK- ES, 15711, I. & Apollo Dr., STAN DONNA, SLC, UT to Blazer Fin Serv; furn, appll, HHG, chattels. Thrft & THOMAS 84119 to Liberty Loan Corp; HH1 Thrft & furn, appli. JOHN 156 W. S., D. , P.O. Box Utopia, SLC, UT 84115 Natnl Ind Serv Corp; equip. to PAT M. , 3228 S. 4180 W., Grngr, Ut 84119 unit. to Centry Fin; stereo 426- - SMITH, Dlvi-- R., Starlit 13th E. , Storm, 3288 S. SLC, UT 84106 to Sutton Shoe Machinery Co; equip. 446 -- ROGERS, WYTONI, 304 Center St., SLC, UT 84103 to Zales Jewelers; diamond watch. EZ, N. 600 W.. 3, 453 HH PHELPS, DOAVID N. LKAT L. & & - , CO. WAREHOUSE 2nd S., , to Rick Warner Ford; tractor. . 505- -CENTENNIAL UT DEVELOPMENT Centry Parkway, 84115 to CIT GARY R. & Corp; con PATRICIA, & HHG. 530- - DEVLIN, Richards 84115 furn. St., - SLC, UT JAMES M. , FRANK E. , 418 SLC. UT 84116 t.v. 4178 Ut Thrft; 532- -TATE, HAROLD R., 12676 S. State, Drpr, Ut 84020 to Interlake Thrft; furn. 533- - PILCHER, PAUL A., 9700 S. 1650 W., S. Jrdn, Ut 84065 to Interlake Thrft; catapiller. 534- -MOORE, CHARLES II., 9707 S. 1650 W., S. Jrdn, Ut to Interlake Thrft; crawler. 535 -FENDER, DARRYL L. , 3229 W. Blgarde Ln., Tlravl, Ut 84119 to Interlake 84065 Thrft; furn. 536- - R0DRIQUEZ, ROBERT A., W. .5780 Krns, Ut 4069 S., to Interlake Thrft; furn, appli. 537- -PECK, WALLACE M, , 386 E. Lambourne Ave., SLC, UT Jeep. 84115 to Interlake Thrft; furn, appll. 549 -- ROMERO, SHARON, 2051 W. 4680 S., SLC, UT 84117 W. INC., Temple, SLC, ' to MET Leasing; air cleaners. WILLIAM M. , 3838 S. 6460 W., Hntr, Ut to Rick Warner Ford; cmpr. 606-WAL- L, 607 -DORA'S 4035 S. to 610-EGGE- MET NURSING HOME, 5th E., SLC, UT Leasing; furn. J. , 329 E. 1050 N., Bntfl, Ut to Mur 1st Thrft & Loan Co; STEVEN furn, appli. 614- -KIRKPATRICK, JOHN M. , 12370 S. 800 E., Drpr, Ut to Ben Fin Co; HHG. 615- -MAJESTIC PARK, SLC, OAKS MOBILE HOME UT to Valy HHG. J. furn, appli. JIM Ave. , D., 3579 V. Allen Grngr, Ut 84119 to Blazer Fin sErv; IE, furn, appll. DBA Co & JUDY, Ave. , to Fin Ben HHG 634- -WONG, JOHN Glenmare St., to 84106 J., Ben 2697 SLC, UT Fin stereo Co; system. - 635- BREWER, DENNIE, 823 Hanover Place, SLC, to Co; HHG. 3597 Ut 84120 6 36 --KINDER, CHERYL, Cree UT Fin Ben Dr., Hntf, to Interlake Thrft; furn, appli. 637- -ADAMS, ROBERT W., 1190 Banner Way, SLC,' UT to Valy Bk & Trst Co; desk, chair. ON 6072 CONSTRUCTION, S. 21st E., to Wlkr fork Bk SLC, UT Trst & Co; lift. STATES STATIONERS, 169 W. Burton Ave., SLC, UT to MET Leasing; bookkeeping machine, WALLY Bk& 620- -AGUIRRE, KARIA J. & ROBIN, 1461 S. W. Temple, SLC.UT to Ford Motor Cr 440-623-IV- W. Crystal SLC , UT 84115 4635 S. 840 W., Trst Co; furn, fixtures, equip. 619- -MEDICI, CHARLES & GLORIA, 5667 Echo Dr., Mur, Ut 84107 to Lockhart Fin Co: Co; 140 84102 UT to Inter lake Thrft; 531- FRAZIER, 84118 L, S. S. JAMES ANDY'S USED CARS, 1521 LOUIE I. 4015 , 740 W. 1700 S. Suite 2, SLC, UT 84104 to Exxon Chemical Co; AR. Ut 84070 Bk; motor & SONS, 558 -- BOWMAN, HAROLD 1321 E. 3300 S. 11, SLC, UT 84106 to Valy Bk & Trst Co; csmpactor. STEVEN D. & CAROL, 495 S. 8th E., Bntfl, Ut to Jackson Fin & Thrft Co; HHG, appli. 597-HAL- & Brighton View Dr. , Sandy, to Mountain View vehicle inventory. AMERONGEN, 6 04 --PRO -- BODY SHOPS, II. , 2119 MARVA CLARENCE G. P., 4391 Meadowgate Cir. , Grngr, Ut 84120 toValy Bk & Trst Co; piano. UT SLC, PLASTICS INC. PACKAGING, trlr. t, JOHANNES N UT Fin Corp; NationW organ. 630-S.- S. PATRICIA, 6236 S. 23rd E., SLC, UT 84121 to Valy Bk & Trst Co; boa 557-VA- to 84121 & & etc. W. LEO furn, appli, fixtures. 556- SEYBOLDT, 453 S., Bntfl, Ut 84010 to Wlkr Bk & Trt Co; contract rights, 520 furn, appll. 1780 LAURA, E. Cloverdale, SLC, C. Green Valy Dr., Mur, Ut 84107 to NationW Fin . Corp; HH RADIO & KSTU FM. W. 500 5 04 --CENTRAL Fin; furn. 627 --WILCOX, Fin Corp; NationW ELIZABETH, 4699 TrstCo; & furn, appli. 551 -MORTENSEN , Ut Bntfl, S. 4080 W., Grngr, 84120 to Interlake E. & 1933 Condie Dr., BEVERLY, SLC, UT 500 S., Wlkr Bk to & 7516 Autumn Dr. , W. Jrdn, Ut84084 to Household Fin 200 S., Sandy, Ut 422- - SCHNCOR, to 2 Corp; trucks. Krns, Captl Fin Serv; HHG. 421- - BAILEY, JOHN DALE, 115 W. W. 528-C0L- E, 5345 S. Ut 84118 to & LOUGH Ut & KAY, JERRY LEON, 2170 REES H. , 2249 Bel Air Dr., SLC, UT to Wlkr Bk & Trst Co; boat, 407-QUAY- D. Riverside Dr., Mur, Ut 84107 to The St. Paul Leasing Co; motor grader. E, 1 & LEASING CO. ELCO LEASING CO. ELCO LEASING CO. M. & 2068 W. 7125 S., W. 84084 to Blazer Ut Jrdn, PAT, 550- - SMITHLER, HAZEL, 158 N. 300 W., SLC, UT 84103 CO., INC. LEASING SLC, INC. , 4662 S. O, 4320 W., rd unlisted. Co; DENNIS A, set. HH CO., 34 E. 7930 S., SJndy, Ut 84070 to Earls Home Furn; carpet, furn. k. Hewlett-Packa- 1594 84109 237 UT to UT HHG. S., 420-HYD- SLC, UT 84112 UT to Freight Outlet Inc; color combo. , 5874 diamond-bas- L. , 460 415- - FRY, FRANKLIN L. , W. 4th SLC, UT 418-SEEC- RONALD D, St., SLC, to Fid Ind CrCo; & HUG. IS, HHG. 3185 S. 4300 W., SLC, , 945 Wilson Ave., 84105 to Ben Fin CARMEN, SLC, UT A., Bntfl, to Fid Ind Cr Co;HHG. 414- - MULLINS, GARY & BARBARA, 416-MIK- --WALKER, at p. 786. 23-- 2, JOHN to NationW FinCorp; diamond accounts, chattels, etc. 1015 Ut 84010 SHELDON Chicago - RONALD to Fid Ind CrCo; 8-7 Uniform Commercial Coda Filings: 4 DORIS & Fin Serv; furn, appli, Uniform Commercial Code Filings 440-38- S. JAKES S., 11095 S. 2125 E., Sandy, Ut 84070 to Blazer 9-1- 7-7 These are Uniform Commercial Code filings with the Secretary of State's office. It will indicate the security useu uii 11 10 luan. example . . . miy is household goods; "Of Eq" is office equipment; "Cmpr" is a camper, etc. Costs to defendants (respondents). 6. White and Summers, Uniform Commercial Code, Section 7. Id. , Section 23-- 5, at p. 796. & ELCO chattels. HHG, 411- - PLATT, to pltf; 65695 Doc k Iter Cdt vs BERT DOCUE; 173k So. W. Temple $36 to pltf; 65700 KAD vs JOHN M. GUTCH 1029 Barbara Place B $72 to pltf; Affirmed: to Zales jewelers; & Atkin Ave., to Blazer 2278 84109 Fin Serv; furn, appll, EARNEST RICHARDS; Ave. 04 Uniform Commercial Code Filings Judgments 65676 ICA VS JOHN V. 8th S. $51 03 C. DBA HI4IAY MOTORS, 225 N. Hwy 91, NSLC, UT to MET Leasing; furn, equip. 643 - SHERIFF, WENDELL H. , 1409 E. 8425 S., SLC, UT . to Mur 1st Thrft & Loan Co; HHG. DAVID PATRICK, DBA MEDICAL CENTER, 2525 18, SLC, JUT BUSINESS S. Main Suite to MPT Leasing; machines. - 645- YOUNG, NORMAN A., E. 3300 S., SLC, HFT UT Leasing; furn. 1470 to |
