BUSINESS LAW QUESTION

Do a complete IRAC analysis explaining the issues, all the rules of law applicable, a full analysis, and conclusion

Answer as much as you can!

1. Your client, Smith, is a farm equipment dealer in St. Louis County, Minnesota. On August 16, 2015, Smith sold a combine (used to harvest wheat and other grains) to Edwards, a resident of Douglas County, Wisconsin, for $5,000 cash down and $95,000 payable in 120 monthly installments of $1,000 each (including interest), commencing September 1, 2015. To secure payment of the outstanding debt, Edwards signed a security agreement granting Smith a security interest in the combine.

Assuming that Smith took whatever steps were necessary to perfect his security interest in the combine no later than September 1, 2015, suppose that, on March 24, 2016, still owing Smith $84,000 (in other words, Edwards was current on her payments), Edwards traded the combine to another farm equipment dealer, Jones, located in Carlton County, Minnesota for a $75,000 for a tractor to use on Edwardss weekend farm there. What would be Smiths collateral as of April 1, 2016? Please explain.

ISSUE: (state what the rule of law is)

RULES: (The rule section of an IRAC is the statement of the rules pertinent in deciding the issue stated)

ANALYSIS: (Analyze the rules and apply to problem/issue)

CONCLUSION: (State what the outcome would be) What would Smith's collateral be as of April 1, 2016?

B.

Assuming that Smith took whatever steps were necessary to perfect his security interest in the combine no later than April 1, 2016 and that Edwards was current on her payments through March 1, 2016, suppose instead that, on March 24, 2016, Edwards sold the combine for $75,000 cash and deposited the cash in a bank account with a prior balance of $15,000.

Suppose, further, that on March 30, 2016, Edwards purchased a tractor from Jones for $60,000, to use on Edwardss weekend farm in Douglas County. Edwards wrote Jones a check in the amount of $30,000, drawn on the aforementioned bank account, and agreed to pay Jones the balance due in installments of $1,000 per month for 36 months, giving Jones a security interest in the tractor to secure Edwardss obligation to make the installment payments. Assume that Jones properly perfected her security interest in the tractor on March 31, 2016.

What is Smiths collateral as of April 1, 2016? Please Explain.

ISSUE: (state what the rule of law is)

RULES: (The rule section of an IRAC is the statement of the rules pertinent in deciding the issue stated)

ANALYSIS: (Analyze the rules and apply to problem/issue)

CONCLUSION: (State what the outcome would be) What would Smith's collateral be as of April 1, 2016?