Question No : 8

Aaron bought a television set for personal use from Penny. Aaron properly signed a security agreement and paid penny $ 125 down, as their agreement required. Penny did not file, and subsequently Aaron sold the television for $ 800 to Clark, his neighbor, for use in Clark's hotel lobby.

When Aaron fails to make the January and February payments, may Penny repossess the television from Clark?

a) What if, instead of Aaron's selling the television set to Clark, a judgement creditor levied ( sought possession ) on the television? Who would prevail

b) What if Clark intended to use the television set in his home? Who would prevail?