Detailed Answer
(a) After Hale repossesses the computer and sells it in a
commercially reasonable fashion, Hale may obtain a deficiency
judgment for the amount still owed after the proceeds from the
sale pay the expenses of repossession and sale and the debt owed
to Hale. Hale may not, however, retain any amounts beyond
what Hale is owed, thus answer (b) is incorrect. Any remaining
proceeds go to the debtor after repossession and sale expenses
and secured parties are paid. Answer (c) is incorrect because for
consumer goods, such as the personal computer in this fact pattern,
the goods must be sold if the debtor has paid more than
60% of the debt secured by the consumer goods. In this fact
pattern, Drew paid two-thirds of the debt. Answer (d) is incorrect
because Hale must notify Drew in writing of the impending
sale unless Drew had agreed otherwise in writing.