[Bad Hair Day] Tara Started a New Hair Salon and Leased

question 42

Multiple Choice

[Bad Hair Day] Tara started a new hair salon and leased space for the salon from Marisa. Unfortunately, Tara's styling caused some problems for customers. One customer's hair turned green from Tara's bleaching process, and Tara burned another customer with a curling iron. Not surprisingly, Tara had little business and was unable to pay her lease payments as they came due. Marisa filed a lawsuit against Tara and obtained a judgment against Tara for $7,000 in past due rent. Marisa asked for a court-ordered judgment permitting the sheriff to seize and sell Tara's equipment, including her hair-dryers, pedicure chair, nail polish, and other items. The judge refused her request. Marisa did, however, obtain an order allowing her to seize $3,000 held in Tara's bank account to partially satisfy the debt. Marisa also discovered that Tara had, for her personal use, a wide-screen television set worth approximately $1,000 which was being held by Franklin, a television repairer, for the costs of repair. Marisa asked him to turn over the television because her lien had priority, but Franklin refused.
-What is the most likely result of the dispute between Franklin and Marisa regarding the television set, assuming no exemption applies?

• A) Franklin will win the dispute because he has rights to a super-priority lien, and he will be able to recover amounts to which he is due from the sale of the television before Marisa is entitled to any funds.
• B) Marisa will win the dispute because a judicial lien is always enforced before any other type of lien, and she will be able to sell the television for amounts owed to her by Tara without sharing any of the funds with Franklin.
• C) Franklin and Marisa will be required to sell the television and split the proceeds 50-50.
• D) Franklin and Marisa will be required to sell the television and split the proceeds based upon their percentage of debt.
• E) Franklin and Marisa will be required to sell the television with Franklin, the holder of an artisan's lien, receiving only 25%, and Marisa receiving the rest.

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