Sam Levenson lent $50,000 to Mort's Auto Sales Limited, a used car retailer. Sam took a chattel mortgage on each of the 10 vehicles on Mort's lot and registered them under the PPSA
Mort's Auto Sales sold the cars to 10 different customers and said nothing about the chattel mortgages to those customers. Mort paid other creditors. Sam received no payment and wants to enforce the chattel mortgage. Which of the following is TRUE?
A) The chattel mortgages are not enforceable against the customers because of the retail sales exemption.
B) The chattel mortgages are enforceable because they were all properly registered under the PPSA.
C) The chattel mortgages are enforceable even though the customers did not know of them.
D) The chattel mortgages are not enforceable against the customers because they did not have notice of them.
E) Both B and C
A
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Indicate whether the statement is true or false
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What will be an ideal response?