Case Problem:
New West Fruit Corporation (New West) and Coastal Berry Corporation are both brokers of fresh strawberries. In the second half of 2008, New West’s predecessor, Monc’s Consolidated Produce, Inc., loaned money and strawberry plants to a group of strawberry growers known as Cooperativa La Paz (La Paz). In September 2008, Monc’s and La Paz signed a ‘‘Sales and Marketing Agreement’’ to allow Monc’s the exclusive right to market the strawberries grown by La Paz during the 2008–2009 season. The agreement did not mention the advances of money or plants, but did give Monc’s a security interest in all crops and proceeds on specified property in the 2008–2009 season. The financing statement was properly signed and filed. Monc’s closed down in January 2009, and its assets were assigned to New West. In April, New West learned that La Paz had agreed to market its 2009 crop through Coastal Berry. New West immediately arranged a meeting to advise the Coastal Berry officers of its contract with the growers. New West requested that Coastal Berry either pay New West the amounts owed by the growers or allow New West to market the berries to recover the money. Coastal Berry did not respond. After Coastal Berry began marketing the berries, New West sent letters demanding payment of the proceeds. In August 2009, New West filed suit against Coastal Berry, La Paz, the individual growers, and a berry freezing company asserting that its security interest was valid and that it had duly notified Coastal Berry both through the financing statement on file and through the letters it had sent to Coastal Berry directly. Coastal Berry claimed that the security agreement was not effective because it did not specifically identify the debt (money and plants) being secured. Discuss.
Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.