In Woven Treasures,Inc.v.Hudson Capital,L.L.C. ,the case in the text,the court held that Woven Treasures' security interest was unperfected because:

A) it did not pay value.
B) it never possessed the collateral.
C) it never filed a financing statement asserting its interest in the rugs.
D) the rugs were not consumer goods.

Unperfected

A legal term describing a security interest or lien that has not been properly filed or recorded, and therefore does not have priority over claims made by other creditors.

Financing Statement

A document filed to give public notice of a security interest in personal property, thereby protecting the interests of secured creditors.

Consumer Goods

Products that are purchased for consumption by the average consumer, including items such as food, clothing, and household products.