So let\'s say YOU buy a SONY flat screen HDTV from Bset Buy on easy credit terms

Question

So let's say YOU buy a SONY flat screen HDTV from Bset Buy on easy credit terms and sign a security agreement thereby giving Best Buy an automatically perfected security interest in these consumer goods.

What you did not know, is that Best Buy purchased this item from SONY as inventory on credit. SONY made Best Buy execute a written security agreement AND a financing statement which was properly filed and perfected. ...in other words a Perfected Purchase Money Security Interest in all HDTV's sold to Best Buy. Should Best Buy default on its line of credit with SONY can SONY repossess the HDTV from little old you???? Why or why not???

Thanks!

Explanation / Answer

The Best Buy should default on its line of credit with SONY. It would help to secure the warranty of the machines offered by the company. Its true that SONY can repossess the HDTV in exchange. IT is a scheme which is offered by most of the electronic appliances.

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