Smith v Firstbank Corp. Legal and Regulatory Issues Case Study

Smith v Firstbank Corp. Legal and Regulatory Issues - Case Study ExampleThe plaintiffs held that the private mountain sale of the shares by the defendants was non reasonable. They also reasoned that if the sale was mercantilely reasonable, then, the way the sale was carried was not reasonable (Clarkson, Roger and Frank 592). They also argued that the defendant never sought multiple offers or even the stovepipe price for the stock.Rules(s)The provision for the disposition of collateral in a commercially reasonable manner is to run protection to the owner of the property under disposition. It is meant to ensure minimization of losses in the disposition. As a factor, price alone is not enough to prove reasonableness. Other factors such as the circumstances that smother other such sales and the effects of the use of other methods of sale would also affect commercial reasonableness of such a sale (Clarkson, Roger and Frank 592).ApplicationThe court considered several factorsCircumst ances contact previous similar sale of shares necessitated the defendants choiceThe defendant sought multiple offers as evidenced by the e-mail to Oberon SecuritiesThe defendant sought the best price as indicated by the unlike in stock prices between the two sales (Clarkson, Roger and Frank 593).ConclusionThe plaintiffs appeal against the summary impression could not hold as the court determined that the defendant carried out the disposition in a commercially reasonable manner.