Yes or No Questions

The Max Finance Company provides financing to Best Buy that enables it to purchase and maintain its entire inventory of laptop computers. Best Buy signs a security agreement with Max Finance each time it receives delivery of a laptop computer.

As part of a sales promotion, Best Buy allowed Max Finance to place large signs in Best Buy stores stating that "Best Buy is a satisfied customer that relies on Max as its most dependable source of financing for computers. We love Max!" Max files financing statements in the public records as soon as the Chinese manufacturer of the laptop computers delivers the laptop computers to Best Buy.

Victor's Burger Joint, a restaurant, purchased three laptop computers from Best Buy for cash. Victor, president of Victor's Burger Joint, read one of Max's signs when he purchased these laptop computers for use by the company's top executives in managing the business.

Best Buy now has defaulted on its obligation to repay Max. Max wants to repossess the laptop computers from Victor's Burger Joint and repossess any unsold laptop computers from Best Buy.

a.Is Max legally entitled to repossess unsold laptop computers on display in Best Buy stores? Simply state "yes" or "no."

b.Does Max have a perfected security interest in the laptop computers it sells to Best Buy? Simply state "yes" or "no."

c.Is Max's interest in the unsold laptop computers still on the shelves at Best Buy a purchase money security interest? Simply state "yes" or "no."

d.Did Max's filing of a financing statement in the public records improve its legal right to repossess the laptop computers sold to Victor's Burger Joint? Simply state "yes" or "no."

e.Did the signs posted by Max in Best Buy stores improve its legal right to repossess the laptop computers sold to Victor's Burger Joint? Simply state "yes" or "no."

f.If Victor one year later resells one of these laptop computers to his neighbor for $400, will Victor's sale be governed by the UCC? Simply state "yes" or "no."

g.If Victor one year later resells one of these laptop computers to his neighbor for $400, will Victor have breached the implied warranty of title? Simply state "yes" or "no."