Question & Answer: Benson purchased a new Ford Thunderbird automobile. She traded in her old auto- mobile and financed the balance of $4,326 through the Magnavox Employees Credit…..

Benson purchased a new Ford Thunderbird automobile. She traded in her old auto- mobile and financed the balance of $4,326 through the Magnavox Employees Credit
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Benson purchased a new Ford Thunderbird automobile. She traded in her old auto- mobile and financed the balance of $4,326 through the Magnavox Employees Credit

Expert Answer

 

In the present case, ACM’s lien have priority over Magnavox Credit Union’s lien because according to the decision given by the court in a similar case of Gables Lincoln-Mercury, Inc. v. First Bank & Trust Co., when a person in the ordinary course of business provides services related to a good subject to a security interest by any other party, that service providor will have priority in lien over the other party.

Thus ACM’s lien have priority over Magnavox Credit Union’s lien.

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