In June 2006, Best Buy decides to open a new store in Columbia, Missouri. In order to finance the new store, Best Buy goes to Commerce Bank to seek a loan. On July 31, 2006, Commerce Bank takes a perfected security interest in Best Buy’s inventory (including after-acquired). The security agreement contains a provision that “for any and all cash sales made at the Best Buy Columbia store that are greater than $1,500, Debtor must obtain payment in the form of a check made jointly payable to Debtor and Commerce Bank.”

Best Buy installed a “tickler” system where anytime a customer’s total was in excess of $1,500, the computer register would pull up the applicable portion of the Commerce Bank/Best Buy Security Agreement showing how payment was to be tendered (i.e., the requirement of a check made jointly payable to Best Buy and Commerce Bank). The customer would then have to check the “I accept” box before continuing with the transaction.

Best Buy had a grand opening sale on July 1, 2007. At that sale, Dana buys a home theater system worth $2,000. When she was checked out by a Best Buy employee, the tickler system pulled up the Security Agreement provision, and the employee instructed Dana to read the provision and indicate whether or not she accepted it. Dana read the paragraph and clicked the “I accept” button. Dana then wrote a check made payable to “Best Buy” which was tendered by the cashier.

At the same grand opening sale, Pete buys a laptop computer and accessories totaling $1,800. When Pete was trying to check out, the line for the registers was backed up almost to the back of the store. Cashiers were rushing through the checkout process, often forgetting to have the customers accept the Security Agreement provision. In fact, Pete’s cashier just bypassed the tickler system in order to get the line moving faster. Peter never read or indicated whether he understood the relevant Security Agreement provision. Pete also writes a check made payable to “Best Buy” which was tendered by the cashier.

In the event that Best Buy later defaults on its loan from Commerce, what result?

A. Commerce Bank can enforce its security interest against the goods sold to both Dana and Pete.

B. Commerce Bank can enforce its security interest against the goods sold to Dana, but not to Pete.

C. Commerce Bank can enforce its security interest against the goods sold to Pete, but not to Dana.

D. Commerce Bank cannot enforce its security interest against the goods sold to either Pete or Dana.