Benton v. Sun Industries, Inc.

The issue is whether a so-called “ credit charge ” 62% in excess of the original cost of an automobile (40% to be paid in one year) is usury or a legitimate and legal charge for deferred payment on credit instead of payment in full for cash.

Plaintiffs bought from defendant Sun Industries, Inc., as seller, a 1942 Cadillac car for $2,224 and received credit for $1,000 on a turned-in Oldsmobile, thus making the net purchase price owed to the seller $1,224, which the defendant finance company advanced. Plaintiffs, the purchasers of the car, allege that by reason of fraud and misrepresentation…