Question
Mr. & Mrs. Smith co-own a small diner, called Vittles . Recently, the dishwasher at Vittles broke and the Smiths were forced to move their
Mr. & Mrs. Smith co-own a small diner, called Vittles. Recently, the dishwasher at Vittles broke and the Smiths were forced to move their home dishwasher to the diner. This was an unsustainable situation for the Smiths they needed a dishwasher for their home and they were uncertain whether the one they moved to Vittles would be strong enough to withstand the frequent use that is required so they went to Maytag to purchase a new dishwasher. Maytag sold the Smiths a dishwasher that could be used in their home or at Vittles. They purchased it on credit and signed a security agreement, which listed the new dishwasher as collateral. Maytag took no further action. Does Maytag have a valid security interest in the dishwasher? If so, is Maytag also perfected in the dishwasher? Please explain your answer.
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