Question
Your client, Winston, sold a large number of freezers to Rita on credit.This occurred on May 1, 2017.Winston had purchased these freezers from Manny on
Your client, Winston, sold a large number of freezers to Rita on credit.This occurred on May 1, 2017.Winston had purchased these freezers from Manny on March 1, 2017.Manny had purchased the components from Supplier on November 1, 2016.Assume that each transaction is a credit sale and that every creditor timely filed a UCC-1 such that they are secured parties.
B. Now assume that Cindy bought a freezer for her house from Rita on May 15, 2018. Rita filed the UCC-1 on July 1, 2018.Cindy sold that freezer to her friend, Cool Girl, on January 5, 2019.Cool Girl was paying Rita for the debt in Cindy's name until Cool Girl lost her job on March 1, 2019.Cool Girl has not made a payment since but he has not told Cindy about this either.What are Rita's rights as to this freezer?Would that change if Rita did not file a UCC-1?Why or why not?
C.Assume that Supplier never filed when it sold to Manny.Manny files for Chapter 7 bankruptcy on January 5, 2018 and Manny had not paid Supplier at that time.What are Supplier's rights and remedies?What is the likely result for Supplier in this Chapter 7 bankruptcy since Supplier never filed?
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