Answered step by step
Verified Expert Solution
Question
1 Approved Answer
2 2 . New West Fruit Corporation ( New West ) and Coastal Berry Corporation are both brokers of fresh strawberries. In the second half
New West Fruit Corporation New West and Coastal Berry Corporation are both brokers of
fresh strawberries. In the second half of New West's predecessor, Monc's Consolidated
Produce, Inc., loaned money and strawberry plants to a group of strawberry growers known as
Cooperativa La Paz La Paz In September Monc's and La Paz signed a "Sales and
Marketing Agreement" to allow Monc's the exclusive right to market the strawberries grown by La
Paz during the season. The agreement did not mention the advances of money or plants,
hut did give Monc's a security interest in all crops and proceeds on specified property in the
season. The financing statement was properly signed and filed. Monc's closed down in
January and its assets were assigned to New West. In April, New West learned that La Paz
had agreed to market its crop through Coastal Berry. New West immediately arranged a
meeting to advise the Coastal Berry officers of its contract with the growers. New West requested
that Coastal Berry either pay New West the amounts owed by the growers or allow New West to
market the berries to recover the money. Coastal Berry did not respond. After Coastal Berry began
marketing the berries, New West sent letters demanding payment of the proceeds. In August
New West filed suit against Coastal Berry, La Paz, the individual growers, and a berryfreezing
company that its security interest was valid and that it had duly notified Coastal Berry both
through the financing statement on file and through the letters it had sent to Coastal Berry directly.
Coastal Berry claimed that the security agreement was not effective because it did not specifically
identify the debt money and plants being secured. Discuss.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started