Three questions

 

Under the UCC, goods used by a business in performing its function are referred to as Leon borrowed money to purchase a car against the certificate of deposit he has in the bank. Is this a secured transaction? Is the car his collateral? Explain your answer. Gordan and Angie purchased a refrigerator, washer, and dryer for their new home on credit from Discount Appliance City using the appliances as collateral. Three months later, the appliance wholesaler, Appliance Inc., appeared at their front door wanting to reclaim the appliances because Discount Appliance City had defaulted on its payments for the appliances. Appliance Inc. contends that it has a security interest in the appliances and has the right to take possession of them. Is Appliance Inc. correct in this assumption? Why or why not?

Under the UCC, goods used by a business in performing its function are referred to as Leon borrowed money to purchase a car against the certificate of deposit he has in the bank. Is this a secured transaction? Is the car his collateral? Explain your answer. Gordan and Angie purchased a refrigerator, washer, and dryer for their new home on credit from Discount Appliance City using the appliances as collateral. Three months later, the appliance wholesaler, Appliance Inc., appeared at their front door wanting to reclaim the appliances because Discount Appliance City had defaulted on its payments for the appliances. Appliance Inc. contends that it has a security interest in the appliances and has the right to take possession of them. Is Appliance Inc. correct in this assumption? Why or why not?