Daniel v. Bank of Hayward
Supreme Court of Wisconsin
425 N.W.2d 416 (1988)
The Daniels (plaintiffs) contracted to buy an unmanufactured van from dealer Hofstadter, trading in a motor home and still owing $3,402, while the Bank of Hayward (defendant) financed Hofstadter's inventory purchase of the same van for $9,905.22; when the Bank later discovered Hofstadter improperly removing secured vehicles from its lot, it froze the lot and refused to release the Daniels's van unless they paid the Bank's full $9,905.22 interest rather than the $3,402 they actually owed Hofstadter, and the Daniels borrowed the difference to get the van before suing to recover the overpayment. The trial court granted the Bank summary judgment.
Whether, under the Uniform Commercial Code, a purchaser may become a buyer in the ordinary course of business based on the substance of the transaction and the seller's customary sales practices.