Marco is a seller of industrial batteries $($valued at $$68,000$ each$).$ He purchases a large quantity of industrial batteries from a manufacturer, Pomona Energy Supplies, LLC $($PES$)$ by making a down payment and signing an agreement to make the balance of the payments over time. The agreement gives PES a security interest in the batteries and the proceeds. PES immediately files a financing statement on its security interest. Marco receives the batteries and immediately sells one of them to Greco on an installment contract with payment to be made in twelve equal installments. At the time of the sale Greco knew of Marco's security interest. Two months later Marco goes into default on his payments to PES. What law applies?

Enchilada Hut Restaurants Inc. $($a restaurant chain$)$ has $500,000$ shares of outstanding stock spread over many of the states west of the Mississippi. The president Raphael Ortega has decided to split the shares four for one to make the share price more attractive for potential shareholders. Mr$.$ Ortega plans to file a registration statement and prospectus on the $1,500,000$ new shares to be issued because of the split. What law applies?

Ali signs corporate checks for Middle East Imports, Inc. $($MEI$)$ as their chief accountant. He writes a check payable to South Pacific Exports, Inc $($SPE$).$ Even though MEI owes nothing to SPE Ali signs the check, forges SPE indorsement and cashes the check at Pomona Fifth National Bank, the drawee. What law applies?

Mohammad plans to open an Herb and Spice store and to hire Baha and Zia. Mohammad will invest only his own funds. He expects that it will take two to three years to make a profit and the profit growth will be slow after that. His goal is to expand eventually. What law applies?