Classification of collateral is not always easy. Classify the following collateral. Possible Solutions: consumer goods, equipment, farm products, inventory, documents of title, chattel paper, instruments, accounts, or general intangibles.
a. Burns Rentals leases and sells TV sets and cars. Burns obtains financing from City Bank, enabling him to buy 25 cars and 100 new TV sets.
b. Burns has 50 cars on his lot for lease.
c. Burns sells a truck to Boyce and retains a security interest in the truck. Boyce uses the truck exclusively for weekend camping and fishing trips.
d. Burns assigns Boyce's promissory note and security agreement to City Bank as collateral for the loan.
e. Burns Rentals buys 300 new Philco TV sets for his annual summer sale. Classify the TV sets in the hands of Philco; in Burn's possession. Virgil, owner of Virgil's Truck City and Bar buys a TV set during the sale. The set is delivered to Virgil in the original carton and put in the back of his 16-wheeler. What type of goods did Virgil buy?
f. When Philco sells TV sets to Burns, it packages them in special shipping cartons, using packaging materials such as styrofoam and excelsior. Philco maintains a large supply of these materials.
g. Burns has a large supply of diesel fuel and oil for his fleet of trucks.