The case of
Christine Seney v. Rent-A- Center Inc. is about the lease and sales of a
vehicle. In the case, the court collected important information about the case
and used a test to determine if the transaction is actually a sale. After
collecting information and using test the final decision of the court was
against the claimer who claimed for the sales transaction. Court decided that lease
and sales are not equivalent on the economic scale. To determine this court
used a test which covered two main points. The two main points are presented
below:
In negotiation, leasee should draw a contract
with the seller regarding upfront payment at least equivalent to the amount that
would be paid by the purchaser along with the amount of interest.
While taking possession of “to be sold” item
lease should draw contract of the payment schedule.
The test
used in this court was quite simple as the court only made verification about
the lease payment schedule and paid the amount equivalent to the purchase price
plus interest amount. On the basis of this test results and outcomes court
decided that sales are not qualifying as it relates to leasing only which does
not have an equivalent economic status of a sale. The intent true of Christine
Seney v. Rent-A- Center Inc. case also indicates that contracts drawn between
both parties were related to the lease of the item rather than sale. Furthermore,
no clear payment schedule was decided between both parties therefore, the final
decision was confusing for both parties.
What test is used by the court in Bill
Parrot v. Daimler Chrysler Corporation to determine if the transaction is
actually a sale? Explain and Discuss.
In Bill Parrot v. Daimler Chrysler
Corporation case court decided that deal is not a qualifying sale. The case of Bill
Parrot v. Daimler Chrysler Corporation is about the transfer of owner between
the retailer and vehicle owner. The decision made for the Bill Parrot v.
Daimler Chrysler Corporation is quite different from the decision of a similar
case Christine Seney v. Rent-A- Center Inc. case. The prime difference between
these decisions is not caused by the contradiction of cases but in fact because
of the process or method utilized in decision making. In the case of Bill
Parrot v. Daimler Chrysler Corporation court used a different test to determine
whether the sale can be distinguished as a qualifying sale or not? The key
consideration in the decision making the process by the court can be
distinguished as to whether transaction entertained the resale possibility in
any stage or not? Furthermore, the court mainly focused on two things while
making the decision. The two points are enlisted below:
1.The true intent of each contract
2.While party held title
In the
first stage of the transaction, the title has remained with buyers. While on
the other hand in the second stage true intent was required to be transferred
to the car temporarily. The purpose of this transfer was to make it confirm
that the vehicle would be returned for eventual resale to the retailer. The
court used this information as a test outcome to take the decision about the
sale of a vehicle and its qualifying sales.
Question: 2
As we have seen
several times, stare decisis is at the central core of the authority of the
judicial branch. How does this case contradict that description of core
authority? Explain and discuss.
Stare
decisis is known as the central core of the authority of the judicial branch.
The main idea behind stare decisis is that cases should be decided alike.
Following this concept, judges should collect information about similar cases
before deciding on a particular case. In this system, judges are given limited
authority to decide by themselves based on their studies and knowledge. In
general, judges are required to follow up on the decisions and experiences of
the judicial branch. As a Latin term “stare decisis” means standing by the
something which is already decided.
Stare
decisis is also considered as a legal principle which determines the point in
litigation according to precedent. Somehow, this case contradicts the
description of core authority. In the case of Parrot references in his defense:
Peterson v. Volkswagen of America Inc. and Cohen v. AM General Corp are quite
different cases. Similarly, cases of Bill Parrot v. Daimler Chrysler
Corporation and Christine Seney v. Rent-A- Center Inc. also contradicts to this
statement. In the case of Bill Parrot v. Daimler Chrysler Corporation case court
decided the matter based on different test and concluded the disqualification
of sales. While on the other hand, a relatively similar case was decided with
the use of a different test rather than using the same test for both cases.
Furthermore, in the Cohen v. AM
General Corp case court decided in favor of car lease. Court claimed that the
main purpose behind the transaction was to lease the vehicle. Therefore, it
cannot be considered as a resale related transaction. The decision made by the
court, in this case, is quite different from the decision made by the judges in
a similar case e.g. case of Peterson v. Volkswagen of America Inc. In the case
of Peterson v. Volkswagen of America, Inc. judges collected information about
the case and claimed that if lessor intends to purchase a vehicle while leasing
the vehicle then the lease would be protected by MMWA. The lease would be
considered as category three consumer in MMWA protection. In both cases, conflict
was raised because of lease and sales qualifying. Situations were almost the
same excluding the intent of lease but rather than following the previous case
decision court took a new decision.
In the case of Cohen and Peterson
purpose was vehicle purchase to be for leasing can be considered as inapposite.
Thus, in the light of these examples, it can be said that the core concept of
authority regarding stare decisis is not followed by the judges in these cases.
Judges preferred to use their authority to take a new decision according to
their knowledge and analysis. Judge's power and authority of taking decisions regarding
some particular cases in accordance with the situation and core analysis can
benefit the law system of a society. However, complete freedom and full power
of judges to decide matter under their own opinion and perceptions is also not
acceptable because of the high chances of corruption and personal biases.