Question
Spokes Inc. sold a bike to Dee on credit for Dees personal use.Dee granted Spokes a security interest in the bike to securepayment of the
Spokes Inc. sold a bike to Dee on credit for Dee’s personal use.Dee granted Spokes a security interest in the bike to securepayment of the unpaid purchase price. Spokes did not file afinancing statement. Under these facts:
a. | Spokes’ security interest in the bike is perfected. | |
b. | If Dee sells the bike to Phil for his personal use, Phil paysvalue, and Phil does not know of the security interest, then Philwill take the bike free from Spokes’ security interest. | |
c. | If a repair shop obtains a lien on the bike for unpaid repaircharges, Spokes’ security interest will have priority over thecommon law lien. | |
d. | a and b. |
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