Digital Devices Is a Retail Seller of Entertainment Media

Essay

Digital Devices is a retail seller of entertainment media. Digital Devices sells a 3D HD TV set to Edmund. Edmund cannot pay cash, so he signs a security agreement, paying a certain amount down and agreeing to pay the balance in twelve equal installments. The security agreement gives Digital Devices a security interest in the set. Edmund makes six payments on time then goes into default because of unexpected financial problems. Digital Devices repossesses the set. Can the creditor keep it in full satisfaction of the debt? Explain.