Riley v. Red River Marine, Inc.

George Rose Smith, Justice.

This is a usury case in. which the chancellor refused to cancel the contract for usury. We disagree with his decision.

On June 25,1981, the plaintiff, Eugene Riley, agreed to purchase a boat from the defendant, Red River Marine, for $2,750. Riley was given a bill of sale listing $2,750 as the price, $82.50 as the sales tax (3%), and $275 as a deposit. There was also a notation referring to the transaction as a “90 days layaway.”

Riley testified that on September 25 he returned to Red River’s place of business in Heber Springs to complete the purchase. He was then told…