CASE STUDY: 4 questions

Paul Barton owned a small property management company, doing business as Brighton Homes. In October, Barton went on a spending spree. First, he bought a Bose surround-sound system for his home from KDM Electronics. The next day, he purchased a Wilderness Systems kayak from Outdoor Outfitters, and the day after that he bought a new Toyota 4-Runner financed through Bridgeport Auto. Two weeks later, Barton purchased six new iMac computers for his office, also from KDM Electronics. Barton bought each of these items under installment sales contracts. Six months later, Barton's property management business went bankrupt, and he could not make the payments due on any of these purchases and thus defaulted on the loans. 1. For which of Barton's purchases (the surround-sound system, the kayak, the 4-Runner, and the six iMacs) would the creditor need to file a financing statement to perfect its secu¬rity interest? 2. Suppose that Barton's contract for the office computers mentioned only the name Brighton Homes. What would be the consequences if KDM Electronics filed a financing statement that listed only Brighton Homes as the debtor's name? 3. Which of these purchases would qualify as a PMSI in consumer goods? 4. Suppose that after KDM Electronics repossesses the surround-sound system, the owner decides to keep the system rather than sell it. Can KDM do this under Article 9? Why or why not? Response should be containing legal conclusions (great majority) must be supported by recognized legal authority, such as pages from the textbook. Legal dictionaries and Wikipedia types of authorities are not primary legal authorities if any authority at all. Required references: Business Law, text and cases , 12th edition by Clarkson, Miller, Cross.