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Baton Trucks Inc Sold Trucks in Alberta

Question 75

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Baton Trucks Inc sold trucks in Alberta.Baton bought its trucks from Cold Automotive Inc.Under the terms of its agreement with Cold,Baton had agreed to give Cold a security interest in all of the trucks it acquired from Cold until they were paid for.Baton sold two trucks to Del's Flowers Inc in July.Del's paid for them but did not pick them up right away.Del's was run by Wendel,a friend of the president of Baton and knew about the security agreement that Baton had with Cold,though not its specific terms.Baton defaulted on its agreement with Cold,and Cold seized all of the trucks on Baton's lot including the two that had been sold to Del's.Who is entitled to the two trucks bought by Del's?

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Cold's security interest had attached an...

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