Consider the following scenario:

King Electronics, a retailer of video equipment, sold two DVRs to Larson, a psychologist, for use in her professional practice, which she operates from her home. The sale to Larson was made on credit, with King Electronics retaining a security interest in the DVRs. However, King did not file a financing statement. Now, Mills, another creditor of Larson, claims that his lien on the two DVRs is superior to King's security interest.

Answer the following questions:

1. Is Mills correct in asserting that his lien is superior to King's security interest?
2. As you decide, be sure to classify the DVRs as collateral in the hands of both King Electronics and Larson.

Please consider the following chapters in Anderson's Business Law: Chapter 34