ASSOCIATES DISCOUNT CORP. v. RATTAN CHEVROLET, INC.

Nos. B-1741, B-1742.

462 S.W.2d 546 (1970)

ASSOCIATES DISCOUNT CORPORATION, Petitioner, v. RATTAN CHEVROLET, INC., Respondent. ASSOCIATES DISCOUNT CORPORATION, Petitioner, v. BANNER CHEVROLET, INC., Respondent.

Supreme Court of Texas.

Rehearings Denied December 16, 1970.


Attorney(s) appearing for the Case

Brown, Kennedy & Hill, Jack Kennedy, Sherman, McGown, Godfrey, Decker, McMackin, Shipman & McClane, John W. McMackin and Henry Getchell, Fort Worth, for petitioner.

Elliott & Nall, Ralph Elliott, Sherman, Morgan & Nobles, Decator, L. A. Nelson, Jr., Denton, for respondents.


WALKER, Justice.

These are companion cases involving substantially the same facts. The principal question to be decided is whether the purchase by an automobile dealer from another dealer of a new, unregistered motor vehicle that is subject to a security interest created by the seller is governed by the provisions of the Uniform Commercial Code that protect a buyer in ordinary course of business. We hold that it is.

The facts of only one of the cases will...

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