Norman Cheese Inc operates a retail store selling specialty cheeses.Global Cheese is Norman's exclusive supplier.Global and Norman have an agreement under which Norman's buys cheese on credit, with the purchase price payable 30 days after delivery.As security for its obligation to pay, Norman has given Global a security interest in all of its cheese.Norman defaults on his obligation to pay Global.Global takes possession of Norman's cheese inventory and begins selling it for its own account.Desperate to save his business, Norman agrees to sell Karen all of his cheddar cheese.Karen has no knowledge of Global's interest in the cheese or the fact that the cheese is now in Global's possession.Does Global have an interest in the cheese sold to Karen?

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The Answer of Norman Cheese Inc operates a retail store selling specialty cheeses.Global Cheese is Norman's exclusive supplier.Global and Norman have an agreement under which Norman's buys cheese on credit, with the purchase price payable 30 days after delivery.As security for its obligation to pay, Norman has given Global a security interest in all of its cheese.Norman defaults on his obligation to pay Global.Global takes possession of Norman's cheese inventory and begins selling it for its own account.Desperate to save his business, Norman agrees to sell Karen all of his cheddar cheese.Karen has no knowledge of Global's interest in the cheese or the fact that the cheese is now in Global's possession.Does Global have an interest in the cheese sold to Karen?

Norman Cheese Inc Operates a Retail Store Selling Specialty Cheeses