Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cruella Deville owns a pet shop. On January 5, she borrows $50,000 from Feline Bank to purchase puppies. Feline Bank takes a security interest in

Cruella Deville owns a pet shop. On January 5, she borrows $50,000 from Feline Bank to purchase puppies. Feline Bank takes a security interest in all of Cruella's inventory and after-acquired inventory. In March, Devillepurchases a rare Burmese kitten on credit from CatWoman, who notifies Feline Bank before the Burmese is delivered and files a financing statement. If Deville defaults on all her loans, who gets the Burmese kitten?

a.

FelineBank cannot repossess any of the puppies or kittens; how can a Bank properly care for them?

b.

Feline Bankcan repossess all of the puppies and kitten since it had an after-acquired inventory clause.

  • Bank can repossess all of the puppies and kitten since it had an after-acquired inventory clause.
  • Bank can repossess all of the puppies and kitten since it had an after-acquired inventory clause.

c.

Feline Bankcan repossess all of the puppies but not the Burmese kitten because CatWoman has a PMSI and notified Feline Bank before delivery.

d.

Catwoman can repossess all of the puppies and the Burmese kitten.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Law Of Healthcare Administration

Authors: Stuart Showalter

9th Edition

1640551301, 978-1640551305

More Books

Students also viewed these Law questions

Question

1. Why do we trust one type of information more than another?

Answered: 1 week ago