Debbie’s television set stopped working in the middle of an episode of
her favorite show, Grey’s Anatomy! She called Best Buy, where she purchased
the television, on which she still owed $150 (secured by a security interest
in the television held by Best Buy),
but
was
told
her television was not under warranty since she declined the extended warranty
Best
Buy offered. Since she couldn’t afford to lose time arguing, she decided
to take her TV to Mike, who runs a TV repair business.
Mike
said
he
would
have
it finished by next week’s episode of Grey’s Anatomy. Debbie was
relieved! She asks Mike, “Are you sure, because I really want this back
before next week’s episode?” Mike was pretty sure, so he said, “I’m
99% sure I’ll have it finished by that time.” The following week,
Debbie came into Mike’s shop to obtain the TV only 30 minutes before her
show was to begin. He had finished the television repair only minutes before
her arrival. Debbie left her house so quickly, she forgot her wallet, but didn’t
realize until Mike asked her for payment of the $100 repair. She begged Mike
to let her have the television for the night and she would bring her wallet tomorrow.
Mike was proud of the customer service his shop offered, so he agreed.
Which statement is correct?
A) Mike's artisan's lien has priority over Best Buy's security interest.
B) Best Buy's security interest has priority over Mike's artisan's lien because
Best Buy has a
perfected purchase money security interest.
C) Best Buy's security interest has priority over Mike's artisan's lien
because the debt owed to Best Buy was incurred before the debt owed to Mike.
D) Best Buy's security interest has priority over Mike's rights as an unsecured
creditor.