Jovan Co Owns a Building in Winnipeg in Which Saturn

Multiple Choice

Jovan Co owns a building in Winnipeg in which Saturn Shoes Inc has rented a store premises since 2000. In 2009, Galaxy Shoes Inc agreed to supply Saturn with shoes on credit. Under its agreement with Saturn, Saturn gives Galaxy a security interest in the shoes supplied until they are paid for. Galaxy filed a financing statement to register its interest under the Manitoba Personal Property Security Act. No other financing statements have been registered against Saturn. Saturn has not paid its rent for two months and is in default under its agreement with Galaxy. Jovan and Galaxy both claim to be entitled to seize the shoes currently in Saturn's store. Which of the following is TRUE?

A) Jovan is entitled to the shoes because, as a landlord, it has a distraint right which prevails over security interests.
B) Jovan is entitled to the shoes because it has been Saturn's landlord longer that Galaxy has been Saturn's supplier.
C) Galaxy is entitled to the shoes because security interests always prevail over landlord's distraint rights.
D) Galaxy is entitled to the shoes because Jovan's distraint right is not given priority under the Manitoba Personal Property Security Act.
E) Galaxy is entitled to the shoes because it has a purchase money security interest in the shoes.