Kurt Russell loans Russell Crowe $10,000. Crowe agrees to pay Russell back in installment payments of $500 dollars a month for 25 months. As collateral, Crowe signs an agreement granting Russell a security interest in Crowe's academy award statuette (which had a fair market value of $15,000). Russell timely filed a UCC-1 covering the collateral.
Crowe defaulted on the debt and Kurt is hurtin' to repossess the collateral. Kurt offers to pay Angelina Jolie $500.00 if she will have an "Academy Award" Party (where actors and actresses with academy awards meet and show off their awards), and then not turn over Crowe's academy award statuette to Kurt. This plan is successful, and Crowe is crushed. Crowe sues Russell, claiming this self-help breached the peace. Will his claim be successful?
1. No, Kurt never used violence or threatened to use violence.
2. No, because there was no possibility this self-help could have escalated into a violent confrontation.
3. Yes, because trickery violates secured party's duty of good faith and fair dealing.
4. Yes, because it is theoretically possible violence may have resulted had Crowe discovered the heist as it occurred.