Problem 90

Jack Gladhand was a traveling salesman. He needed new luggage to carry his samples and bought a set from Alligator Fashions, which reserved a security interest therein and filed a financing statement. A month later, in the middle of a hot sales deal, Jack sold all of his samples and the luggage to Mark impulse, a compulsive buyer. Jack told Mark (who paid cash for the goods) that the luggage was genuine alligator (a lie he knew it was lizard). When Mark discovered the truth, he revoked his acceptance of the goods pursuant to 2-608 and claimed a security interest in the goods. Read 2-711(3). On learning of Jack's resale to Mark and of the latter's revocation of acceptance, Alligator Fashions decided to call the loan and repossess the luggage.

Who is entitled to the luggage?