Question: On November 18 Firestone Company made a loan to

On November 18, Firestone & Company made a loan to Edmund Carroll, doing business as Kozy Kitchen. To secure the loan, a security agreement was executed, which listed the items of property included, and concluded as follows: "together with all property and articles now, and which may hereafter be, used or mixed with, added or attached to, and/or substituted for any of the described property." A financing statement that included all the items listed in the security agreement was filed with the town clerk on November 18 and with the secretary of state on November 22. On November 25, National Cash Register Company delivered a cash register to Carroll on a conditional sales contract. National Cash Register filed a financing statement on the cash register with the town clerk on December 20 and with the secretary of state on December 21. Carroll defaulted in his payments to both Firestone and National Cash Register. Firestone repossessed all of Carroll's fixtures and equipment covered by its security agreement, including the cash register, and then sold the cash register. National Cash Register claimed that it was the title owner of the cash register and brought suit against Firestone for conversion. Did Firestone or National Cash Register have the better right to the cash register?

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  • CreatedJuly 16, 2014
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