Shen buys a bicycle on credit from Bike City. Bike City has a security agreement establishing a purchase-money security interest in the bicycle. Shen, however, discovers that he does not have enough money to pay his rent. Therefore, he sells his bicycle to his neighbor, Mindy, who is unaware of Bike City's security interest in the bicycle. Shen fails to make payments on the bicycle and Bike City seeks to repossess it. Discuss the rights and obligations of the parties.

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The Answer of Shen buys a bicycle on credit from Bike City. Bike City has a security agreement establishing a purchase-money security interest in the bicycle. Shen, however, discovers that he does not have enough money to pay his rent. Therefore, he sells his bicycle to his neighbor, Mindy, who is unaware of Bike City's security interest in the bicycle. Shen fails to make payments on the bicycle and Bike City seeks to repossess it. Discuss the rights and obligations of the parties.

Shen Buys a Bicycle on Credit from Bike City