Question
Ann buys a refrigerator on credit from Super Appliances, Inc. Super Appliances, Inc. retains a purchase-money security interest by attachment but does not file a
Ann buys a refrigerator on credit from Super Appliances, Inc. Super Appliances, Inc. retains a purchase-money security interest by attachment but does not file a financing statement. Ann subsequently sells the refrigerator to her neighbor, Juan, for use in his home. Juan does not know of the security interest held by Super Appliances, Inc. Ann fails to pay Super Appliances, Inc. the amount she owes on credit, and Super Appliances, Inc. seeks to foreclose on its security interest.
a. Will Super Appliances, Inc. prevail over Juan?
b. Would this answer change in Super Appliances, Inc. had filed a financing statement with respect to its security interest in the refrigerator?
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