Paul loaned Doug $500 and took a security interest in Doug’s sixty-inch flat screen television. Under the security agreement, Doug would pay Paul in monthly installments for two years. After a few months, Doug defaulted with an outstanding debt of $400.
To satisfy the debt, Paul marched into Doug’s house and pulled the T.V. off Doug’s living room wall. Doug pleaded with Paul to leave, but Paul was on a mission and ignored Doug’s request. Paul immediately walked outside and proceeded to conduct an impromptu auction in Doug’s driveway. He invited all of Doug’s neighbors, but only a few showed up. Paul played the role of auctioneer.
Twenty minutes later, Steve, a man who happened to be walking his dog by the auction, placed the winning bid of $500 (Steve had no idea that there was any problem with the sale). The fair market value of the T.V. at the time of the auction was $550.
Doug was confused and upset. Something didn’t seem right, but he wasn’t sure how to go about fixing it. Which of the following remedies is available to Doug?
1. Sue Paul for conversion
2. Sue Paul to set aside the sale and return the T.V.
3. Sue Steve under 9-625(b)
4. Both 1 and 2.
5. All of the above