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BANDAG, INC. v. NATIONAL ACCEPTANCE CO. OF AMERICA

No. 87-2885.

855 F.2d 491 (1988)

BANDAG, INCORPORATED, Plaintiff-Appellant, v. NATIONAL ACCEPTANCE COMPANY OF AMERICA, Defendant-Appellee.

United States Court of Appeals, Seventh Circuit.

Decided August 26, 1988.

Attorney(s) appearing for the Case

Robert W. Bergstrom, Bergstrom, Davis & Teeple, Chicago, Ill., for plaintiff-appellant.

Sheldon L. Solow, Weissman, Smolev & Solow, Chicago, Ill., for defendant-appellee.

Before BAUER, Chief Judge, and COFFEY and FLAUM, Circuit Judges.

COFFEY, Circuit Judge.

In this diversity case, plaintiff-appellant Bandag, Inc. ("Bandag") seeks to collect $40,000 plus statutory interest from defendant-appellee National Acceptance Company of America ("NAC"). NAC was the primary commercial lender to McCord Tire and Supply Company, Inc. ("McCord"), a purchaser of Bandag products. NAC guaranteed McCord's debts to Bandag, up to $40,000. When McCord defaulted, Bandag sought payment from NAC. NAC denied liability, arguing...

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