Iowa Guarantee Mortgage Corp. v. General Motors Acceptance Corp.

The defendant, a finance corporation, furnished the McRae Chevrolet Company, a retail dealer in Chevrolet automobiles at Salem, S. D., with automobiles and trucks on what is commonly termed the floor plan. When this dealer ordered a shipment from the factory, the manufacturer would make shipment and execute a bill of sale to the defendant. The defendant company would then forward the bill of lading to a bank at Salem, together with a sight draft for approximately io per cent of the purchase price, a note for the balance, and a trust receipt. The dealer would pay the amount of the draft and…