Kraco Is a Retailer of Televisions and Related Products

question 96

Essay

Kraco is a retailer of televisions and related products.Kraco buys its inventory from DEF,the manufacturer,on credit,giving DEF a security interest in this inventory.Beth buys a television from Kraco,paying cash.Beth also knows of DEF's security interest in this television.Sometime later,Kraco defaults on its debt to DEF,and DEF wants to foreclose on its collateral,including the television purchased by Beth.Does DEF have a security interest in Beth's television? Discuss your reasoning.

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