Question

LAW OF ACCOUNTANTS
Your client, Wholesaler, sold a large number of freezers to Retailer on credit. This occurred on May 1, 2017. Wholesaler had purchased these freezers from Manufacturer on March 1, 2017. Manufacturer 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.

A. Draw the picture of each and every transaction and explain each of these transactions under Article 9 of the UCC.

B. Now assume that Cindy bought a freezer for her house from Retailer on May 15, 2017. Retailer filed the UCC-1 on July 1, 2017. Cindy sold that freezer to her friend, Cool Girl, on January 5, 2018. Cool Girl was paying Retailer for the debt in Cindy’s name until Cool Girl lost her job on March 1, 2018. Cool Girl has not made a payment since but he has not told Cindy about this either. What are Retailer’s rights as to this freezer? Would that change if Retailer did not file a UCC-1? Why or why not?

C. Assume that Supplier never filed when it sold to Manufacturer. Manufacturer files for Chapter 7 bankruptcy on January 5, 2017 and Manufacturer 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?

Answer 1

P. Noi Answer :- Bankruptcy Chapter 5-7 E Components manufactures rey - Suppleen @J MAR, 1, 2017 i (wholesaler freezers (Retailers may (1/2017 - Transaction done UCCt on tuly 1, 2017 filed a uce-I- may is, 2017 Article-9 of ucce- - chapter inf till mar 1, 2018 a sold on Jan 5, 2018 DEFAULT 4 Cool Girl * Article-9 of ucc is entitled secured transac- - tion and provide the rules that govern any 2 transaction when the debtor provide on interest in their personal Property to a creditor in exchange of money loaned. The interest is Called " Security interest.

* Clieplanet of the Bankruptcy code provide for "liquidation" the sale of a debtors non - exempte property and the dishibution of the proceeds of creditors. supplier never filed & Retailer Gled uxc-I & ucc-2 so he doesn't have hence Credited a security Credit inlt. or Security interest in the property of int in manufatures CINDY. Cool Girl was paying properly however manufactor a Rotain on behalf of declared himself Bankrupt/ CINDY but now made defaul by choosing chapter 7 Code + in payment By the proceed from So Retailer have right in I liquidation supplier will the property on CINDY be paid at to the extent and candy is liable to of non- exempled property pay. please, voto positively.