Flatbush Auto Discount Corp. v. McCarthy-Bernhardt Buick, Inc.

The courts below have determined that a question of fact existed as to the nature of the transaction, involving a promissory note and chattel mortgage, and have resolved that question in favor of respondent, holding that the transaction was a direct loan to the buyer of an automobile. In our view, however, the undisputed evidence demonstrates as a matter of law that the transaction involved nothing more than a sale of an automobile on time by respondent to one Teresa Maesano, coupled with a prearranged sale by respondent to appellant of the Maesano note and chattel mortgage (cf. Brooks v.…