L. G. Davis v. Yellow Manufacturing Acceptance Corporation

STEWART, Circuit Judge.

In 1949 Cadillac Rentals, Inc., entered into a conditional sale contract at Detroit, Michigan, for the purchase of five trucks from appellee’s assignor, General Motors Corporation. The total contract price of approximately $21,000 was payable in installments over a three year period. In the event of the buyer’s default, the contract provided that the seller could either sue for the unpaid balance or repossess the trucks and retain prior payments as liquidated damages. No provision was made for the collection of any deficiency following repossession.

Simultaneously with…