What criteria define a "commercially reasonable" disposition?

A disposition is considered "commercially reasonable" when it adheres to certain standards that reflect a balance between protecting the interests of the secured party while also ensuring fairness in the process. The criteria that establish this concept typically focus on the price obtained and the manner in which the sale is conducted.

When evaluating a disposition, looking at the price achieved is critical because it should fairly represent the asset's value in the marketplace. Additionally, the manner of sale—whether it's a public auction, private sale, or other method—must conform to common practices in the industry, along with being conducted in a way that maximizes the return for the secured party while being fair to potential buyers.

Thus, the criteria regarding both the price obtained and the manner of sale reflect a comprehensive approach to determining whether the disposition aligns with commercial standards recognized in secured transactions. This is pivotal in assessing the reasonableness of the action taken, serving to protect all parties involved and ensuring transparency in the transaction process.