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Exercise 17

Pawn Transactions

Manny pawned his hand gun at ABC Pawnshop in exchange for $125. He received a pawn ticket and had 60 days to repay the money. Sixty days later, Manny had not paid any money back to ABC. Seventy days after the due date, ABC sold the weapon to a customer. Manny came in three days after the sale and was upset to find out his hand gun was sold, because he was about to pay $125 plus interest to ABC. He sued ABC for violation of the Pawnbrokers Act.

How should the judge rule?

A. For ABC, because Manny had not repaid the money by the 60-day deadline.
ANSWER "A" IS NOT CORRECT. Please try again.
B. For Manny, because ABC was supposed to wait ninety days before selling the weapon.
ANSWER "B" IS CORRECT. Pawnbrokers are required to wait at least ninety days after the due date before selling or otherwise disposing of pawned property. In this exercise, only 73 days had passed. Therefore, ABC was in violation of the Pawnbrokers Act.