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Deemed Security Interest, Power Rental v Forge Group, and PPSA's Mechanics Video Games Ltd is an Australian company which Joanna Heller runs. Joanna imports video

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Deemed Security Interest, Power Rental v Forge Group, and PPSA's Mechanics Video Games Ltd is an Australian company which Joanna Heller runs. Joanna imports video game consoles from Japan and sells them through electronics retail stores in Perth, Sydney, Melbourne and Brisbane. The contractual terms and conditions witit each one of the stores state that Joanna ships 50 consoles to each store for a period of 3 months. Under the agreement, the Joanna receives a weekly payment of 83% for each sold console (ie. the value of each sold console minus 12% commission of the store]. Upon the end of the 3 month period, the stores must ship the unsold consoles back to Joanna. Joanna's accountant, who is not familiar with PPSA, does not register security interest for the consoles for any of the stores. This arrangement worked well with all retail stores, except two: (1} Brisbane Store and Perth Store: Brismne 5mm: the owner of this store, Jacob did not like the suggested arrangement as he thought that there was a good chance that most of consoles would be sold during the Christmas week, which fell outside of the 3 month period. Accordingly, in his negotiation with Joanna, he insisted on having the option to purchase any of the unsold consoles at the end of the 3 month period. Joanna happily agreed with this request and the parties incorporated it in the agreement. Unfortunately, a month after the delivery of the consoles, Brisbane store experienced serious nancial difculties. While no Insolvency Administrator was appointed, the store did not to pay its weekly payment to Joamta; Perth Store: in contrast to other stores, this was a new store. The original location was well known for years as selling fresh vegetables and fruits products. However, the store was sold to Mary, who decided to move into the new business of selling electronics. Right before signing the agreement with Joanna, Mary sent a letter to all her suppliers, introducing herself and describing the nature of the new business. Unfortunately, and similar to Brisbane's Store, Perth's store faced severe financial difculties. The htsolvency Administrator has been appointed and no payments are made to Joanna. Question 1 Would Joanna be able to repossess the consoles from the Brisbane Store? Explain. Question 2 How you would change your answer {if at all} had the Insolvency Administrator been appointed for the Brisbane Store? Question 3 How would you change your answer {if at all} to Question 2 (ie. the Insolvency Administrator had been appointed to Brisbane Store) had Joanna's accountant registered the security interest against the Brisbane Store a month after the agreement formation? Question 4 Would Joanna be able to repossess the consoles from the Perth Store

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