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An Appliance Store Sells a Television Set to Adam for $750

Question 17

Multiple Choice

An appliance store sells a television set to Adam for $750 on a conditional sales contract,reserving a security interest in the set until Adam has paid for it.The store does not file a financing statement but relies on attachment for perfection.Adam later borrows money from a credit union and gives it a security interest in the television set neither of them perfected the security interest.Adam defaults on his loans and the credit union tries to claim the set.Under these circumstances,_____.


A) the credit union has a better claim to the set than does the appliance store
B) the appliance store cannot claim the set as they relied on attachment for perfection
C) the appliance store has a better claim to the set than the credit union
D) neither the appliance store nor the credit union can claim the set

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