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Case Study: Elite Tailors sells custom-made suits. On October 22, Rich Mann buys and takes possession of ten $2,000 custom-made suits sold to him on credit by Elite Tailors. On that date, Elite takes a PMSI in the suits. The suits are for Rich's personal use. On that day, Rich signs a promissory note to pay $20,000 plus 8% simple interest to Elite, payable on October 22 of the following year. Two days after signing the note, Rich uses the suits as collateral to borrow $15,000 from Shylock. Shylock properly perfects by filing that very day. Elite perfects by filing the next day.
(a) Who has priority over the collateral, i.e., the suits? Simply provide the name. Do not explain..
(b) Explain your answer to subpart (a). Be thorough. Do not omit any steps in your reasoning.
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