Wine purchased a computer using the proceeds of a loan from MJC Finance Company. Wine gave MJC
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from MJC Finance Company. Wine gave MJC a security interest
in the computer. Wine executed a security agreement and financing
statement, which was filed by MJC. Wine used the computer
to monitor Wine’s personal investments. Later, Wine sold
the computer to Jacobs, for Jacobs’ family use. Jacobs was unaware
of MJC’s security interest. Wine now is in default under the
MJC loan. May MJC repossess the computer from Jacobs?
No, because Jacobs was unaware of the MJC security
interest.
No, because Jacobs intended to use the computer for
family or household purposes.
Yes, because MJC’s security interest was perfected before
Jacobs’ purchase.
Yes, because Jacobs’ purchase of the computer made
Jacobs personally liable to MJC.
Related Book For
Business Law Principles for Today's Commercial Environment
ISBN: 978-1305575158
5th edition
Authors: David P. Twomey, Marianne M. Jennings, Stephanie M Greene
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