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Evaluate the legal and ethical issues

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Reference no: EM131463071

Coastal Property Restoration (CPR) periodically purchased used restaurant equipment from Famous Subs and Pizza Company. CPR refurbishes and sells restaurant equipment to small restaurants. In December 2014, CPR purchased five used pizza ovens for $50,000. Because of the good relationship between the companies, FSPC financed the ovens for two years; however, FSPC did not obtain a perfected security interest in the ovens. In July 2015, CPR sold four of the ovens to another refurbishing company for $4,000 two days before filing bankruptcy. CPR still owes approximately $35,000 to FSPC for the ovens.

  • Evaluate the legal and ethical issues associated with CPR's sale of the pizza ovens before filing bankruptcy. What recourse does FSPC have in recovering the monies still owed on the equipment or the remaining oven?

Reference no: EM131463071

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