Asked by Maria Clara on Jun 14, 2024
Verified
Generally,a buyer in the ordinary course of business can take property free from any security interest.Which of the following buyers is an exception?
A) A person who is a consumer of durable goods
B) A person buying inventories from a wholesaler
C) A person buying farm products from a farmer
D) A person who is a consumer of perishable goods
Ordinary Course
Activities or transactions that are regular, customary, and in keeping with the normal operations of a business or individual’s day-to-day life.
Durable Goods
Consumer goods that have a long life span (over three years) and are used over time, such as cars or appliances.
Farm Products
Goods that are derived from agriculture, including crops and livestock.
- Illustrate the legal rights that a buyer possesses during typical commercial exchanges in accordance with the Uniform Commercial Code.
Verified Answer
SM
Sydney MonseyJun 14, 2024
Final Answer :
C
Explanation :
A buyer in the ordinary course of business (other than a person buying farm products from a person engaged in farming operations)takes free from a security interest created by his seller even though the security interest is perfected and even though the buyer knows of its existence [UCC 9-320(a)].
Learning Objectives
- Illustrate the legal rights that a buyer possesses during typical commercial exchanges in accordance with the Uniform Commercial Code.