Morris made two purchases. He purchased his neighbor Cordelia'stypewriter and a computer from Crazy Computers. Regarding thetypewriter, Cordelia had bought it on credit from Jack'sTypewriters. Cordelia had financed the purchase with Jack's andsigned a promissory note and a security agreement covering thepurchase. The creditor, Jack's, did not file a financing statement,relying on the concept of automatic perfection for purchase moneysecurity interests in consumer goods. Morris was unaware of thehistory of the typewriter. The computer was subject to a securityinterest in favor of Country Bank, which had perfected its securityinterest by filing. Morris, by coincidence, knew of this securityinterest when Morris purchased the computer. Unfortunately, nietherCordelia nor Crazy Computers paid the secured creditors who nowseek to repossess the collateral from Morris. What will be thelikely outcome of this case?
Morris made two purchases. He purchased his neighbor Cordelia'stypewriter and a computer from Crazy Computers. Regarding thetypewriter, Cordelia had bought it on credit from Jack'sTypewriters. Cordelia had financed the purchase with Jack's andsigned a promissory note and a security agreement covering thepurchase. The creditor, Jack's, did not file a financing statement,relying on the concept of automatic perfection for purchase moneysecurity interests in consumer goods. Morris was unaware of thehistory of the typewriter. The computer was subject to a securityinterest in favor of Country Bank, which had perfected its securityinterest by filing. Morris, by coincidence, knew of this securityinterest when Morris purchased the computer. Unfortunately, nietherCordelia nor Crazy Computers paid the secured creditors who nowseek to repossess the collateral from Morris. What will be thelikely outcome of this case?
