Purchase-Money Security Interest. Barbara Wiegert and her daughter, Darcie Wiegert, went shopping at Sears, and Darcie bought a mattress and box spring for 396.11. Barbara later purchased from Sears a television set for 239.96. Both purchases of consumer goods were charged to the credit card of Barbara (and her husband, Harold). On both credit slips was printed the following statement: I grant Sears a security interest or lien in this merchandise, unless prohibited by law, until paid in full. When the Wiegerts filed their bankruptcy petition, the balance due to Sears was 587.26, plus interest. The Wiegerts claimed that Sears was an unsecured creditor. Sears claimed that it was a secured creditor, arguing that the sales slip contained all of the information needed for a valid security agreement under UCC 9-203: (1) a description of the goods, (2) the signature of the debtor, and (3) language indicating that the debtor was granting Sears a security interest in the goods being purchased on credit. Sears further argued that it did not need to file a financing statement to perfect its security interest because UCC 9-302(1)(d) allows for automatic perfection for a purchase-money security interest in consumer goods. Was Sears correct in making these claims? Discuss fully.
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