An appliance store sells a television set to Adam for $750 on a conditional sales contract,reserving a security interest in the set until Adam has paid for it.The store does not file a financing statement but relies on attachment for perfection.Adam later borrows money from a credit union and gives it a security interest in the television set.Adam defaults on his loans and the credit union tries to claim the set.Under these circumstances:

Question

Quizplus · Accepted Answer

Under the given circumstances,when Adam defaults on his loans and the credit union tries to claim the set,the appliance store has a better claim to the set than does the credit union.The first to attach has priority if neither security interest is perfected.

An Appliance Store Sells a Television Set to Adam for $750