WCW sold 60 laptops to PGI. WCW had a signed security agreement covering the lap
ID: 377968 • Letter: W
Question
WCW sold 60 laptops to PGI. WCW had a signed security agreement covering the laptops, which it immediately filed. Tammy purchased one of the laptops from PGI, knowing that the laptop was covered by a perfected security agreement, but not knowing the name of the creditor.
If PGI defaults on its loan from WCW, can WCW repossess the laptop Tammy purchased from PGI?
Question 9 options:
Yes, because WCW has priority since it filed to perfect before Tammy purchased the laptop.
Yes, because Tammy purchased the laptop knowing that it was covered by a perfected security agreement.
No, because Tammy is a bona fide purchaser for value of consumer goods.
No, because Tammy is a buyer in the ordinary course of business.
Yes, because a "floating lien" type of inventory financing always has priority over anything except a PMSI.
Yes, because WCW has priority since it filed to perfect before Tammy purchased the laptop.
Yes, because Tammy purchased the laptop knowing that it was covered by a perfected security agreement.
No, because Tammy is a bona fide purchaser for value of consumer goods.
No, because Tammy is a buyer in the ordinary course of business.
Yes, because a "floating lien" type of inventory financing always has priority over anything except a PMSI.
Explanation / Answer
The answer is given below:
Yes, because WCW has priority since it filled to perfect before Tammy purchased the laptop.
WCW has a responsibilty towards Tammy purchase on the laptops.
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