you should have a sense of some of the issues that arise when a party is borrowing money in connection with a purchase, and the rights and obligations of the parties involved in the transaction you will have an opportunity to analyze situations surrounding secured transactions Each analysis is worth 5 points, for a total of 20 points For each of the following, read through the scenario and then answer each of the questions that follow as completely as possible Chapman agreed to sell certain land to Pierson and retained a mortgage on the property to secure payment of the purchase price The mortgage contained a clause providing that if Pierson defaulted, Chapman had the right to enter upon the above described premises and sell the same at public sale to pay the purchase price, accounting to Pierson for any surplus What type of foreclosure does this provision contemplate, and why Bolton Hardware Company was engaged in the business of furnishing materials to property owned by John and Lisa Mason The materials were for the use of a contractor that was building a home for the Masons as well as several other houses in the area Bolton was not paid for the materials by the contractor and sought to obtain a mechanic's lien materialmen's lien against the Mason's property The Masons claimed that even though the materials were delivered to their home, they were actually used to build other houses in the area Was the Mason's property subject to a mechanic's lien materialmen's lien because payment had not been made for the materials delivered, and why or why not Carson bought a ruby ring from Dazzling Diamonds as an anniversary present for his wife Carson signed a purchase money security agreement giving Dazzling Diamonds a security interest in the ring until it was paid for Dazzling Diamonds did not file a financial statement covering its security interest Carson filed for bankruptcy The bankruptcy trustee claim that the ring was part of the bankruptcy estate because Dazzling Diamonds did not perfect its security interest Dazzling Diamonds claimed that it had a perfected security interest in the ring Did Dazzling Diamond have to file a financing statement to perfect its security in the ruby ring Byers purchased a new Ford F 150 automobile She traded in her old car and financed the balance of $8,575 through the Lovell Credit Union, which took a security interest in the Ford F 150 Several months later, the F 150 was involved in two accidents and sustained major damage It was taken to ABC Auto for repairs, which took seven months and resulted in charges of $3,100 Byers was unable to pay the charges, and ABC claimed a garageman's lien Does Lovell Credit Union's lien or ABC's lien have priority and why

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you should have a sense of some of the issues that arise when a party is borrowing money in connection with a purchase, and the

you should have a sense of some of the issues that arise when a party is borrowing money in connection with a purchase, and the rights and obligations of the parties involved in the transaction.

you will have an opportunity to analyze situations surrounding secured transactions. Each analysis is worth 5 points, for a total of 20 points.

For each of the following, read through the scenario and then answer each of the questions that follow as completely as possible:

1. Chapman agreed to sell certain land to Pierson and retained a mortgage on the property to secure payment of the purchase price. The mortgage contained a clause providing that if Pierson defaulted, Chapman had the "right to enter upon the above described premises and sell the same at public sale" to pay the purchase price, accounting to Pierson for any surplus.
  1. What type of foreclosure does this provision contemplate, and why?
2. Bolton Hardware Company was engaged in the business of furnishing materials to property owned by John and Lisa Mason. The materials were for the use of a contractor that was building a home for the Masons as well as several other houses in the area. Bolton was not paid for the materials by the contractor and sought to obtain a mechanic's lien/materialmen's lien against the Mason's property. The Masons claimed that even though the materials were delivered to their home, they were actually used to build other houses in the area.
  1. Was the Mason's property subject to a mechanic's lien/materialmen's lien because payment had not been made for the materials delivered, and why or why not?
3. Carson bought a ruby ring from Dazzling Diamonds as an anniversary present for his wife. Carson signed a purchase money security agreement giving Dazzling Diamonds a security interest in the ring until it was paid for. Dazzling Diamonds did not file a financial statement covering its security interest. Carson filed for bankruptcy. The bankruptcy trustee claim that the ring was part of the bankruptcy estate because Dazzling Diamonds did not perfect its security interest. Dazzling Diamonds claimed that it had a perfected security interest in the ring.
  1. Did Dazzling Diamond have to file a financing statement to perfect its security in the ruby ring?
4. Byers purchased a new Ford F-150 automobile. She traded in her old car and financed the balance of $8,575 through the Lovell Credit Union, which took a security interest in the Ford F-150. Several months later, the F-150 was involved in two accidents and sustained major damage. It was taken to ABC Auto for repairs, which took seven months and resulted in charges of $3,100. Byers was unable to pay the charges, and ABC claimed a garageman's lien.
  1. Does Lovell Credit Union's lien or ABC's lien have priority and why?