Reference no: EM133297833

You work for EZ Financial who give loans to people with bad credit so that they can purchase a car or finance a home renovation. Lily wanted to purchase a 2018 Hyundai Roo, that had 37,000 km on it. The loan was for $22,000 and Lily was to pay $218.93 bi-weekly for 5 years (60 months) at 5.5% interest.

1. After about 6 months Lily lost her job and was unable to pay the loan. EZ Financial wished to repossess the vehicle. What must EZ Financial prove to be able to get the car back?

2. Since Lily has not been employed, she has not paid her rent in 3 months and owes her landlord $3,000. Lily's landlord wishes to take seize Lily's car that is sitting in the driveway and sell it to cover the outstanding rent? Can the landlord seize the car?

3. Lily decided to not wait to get a job and started baking and selling homemade pies and cakes from her home. She is able to sell about 10-15 deserts every week and is able to start paying her outstanding debts. She believes she has nothing to worry about if she just sells 10-15 deserts each week.

4. Lily wants to grow her business and lease a small store but is unable to get a bank loan. She wants to bring in someone who can provide financing but is not involved in the day to day running of her baking business. What would you suggest she can do and discuss whether it would change her ultimate liability?