Business Law Secured Transactions Scenerio Uniform Commercial Code UCC
On November 1, Mike purchased a Razr Scooter from The Really Big Scooter Store "RBS" for $1,000, promising in writing to pay the balance at $100 per month and granting to RBS a security interest in the property in terms consistent with and incorporating provisions of the UCC. A financing statement covering the transaction was also properly filled out and signed, and RBS properly filed it on November 30.
After Mike failed to make the December or January payments, RBS went to his home to collect the payments or take the scooter. Finding no one home and the scooter outside beside the garage, RBS took the scooter. Two hours later, Chad, a third party and the present occupant of the house, who had purchased the scooter for his own use, stormed into RBS, demanding the return of the scooter. He showed RBS a bill of sale from Mike to him, dated December 15, that listed the bicycle and other furnishings in the house.
1. Answer the following in legal terms
(a) What are the rights of RBS, Mike and Chad?
(b) Would your answer to part (a) change if RBS had not filed a financing statement? Why?