1. FOXXCON is known for its simple designs, cube architecture, and hidden screws and bolts. Indeed, its founder, with the initial S.J has given an amazing Ted Talk presentation. On January 2, 2001, APPUL Computers, a retailer of computers, made business outreach and entered into contract (K) with FOXXCONN to purchase goods, specifically 150 computers for its warehouse to be delivered in its Apple APPUL Stores as inventory. Per terms, the purchase price was a total of $250,000. In good faith, APPUL first made payment of $50,000 in cash to FOXXCONN. APPUL then also gave FOXXCONN a negotiable instrument (here, namely a promissory note) as well as a security agreement. The promissory note covered the remaining balance. On March 1, 2001, the contracted good items (.e, computers) were duly transported using Swift truckers who delivered them to APPUL at its warehouse for inspection and later to the APPUL stores. On March 10, 2001, FOXXCONN filed a Financing statement. (On February 1, 2001, APPUL negotiated a million dollar ($1M) credit line with WELLS-FARSTOP Bank, pledged its present and future inventory as security, and gave WELLS-FARSTOP a security agreement. On February 20, 2001, APPUL borrowed $100,000 that it took from its credit line with WELLS-FARSTOP. On March 5, 2001, WELLS-FARSTOP filed a financing statement. 1 On April 1, 2001, BLUE, a consumer purchaser in the ordinary course of business, purchased a computer from APPUL. BLUE was aware of both security interests that APPUL had with FOXXCON and with WELLS-FARSTOP. Question: Which of the following statements is true?
   1. FOXXCONN's security interest has priority because it was a purchase money security interest.
   2. WELLS-FARSTOP's security interest has priority because WELLS-FARSTOP's financing statement was filed before FOXXCONN's.
   3. WELLS-FARSTOP's security interest has priority because WELLS-FARSTOP's interest attached before FOXXCONN's.
   4. None of the above