Asked by kimberly reilly on May 05, 2024
Verified
With regard to a prior perfected security interest in goods for which a financing statement has been filed,which of the following parties is most likely to have a superior interest in the same collateral?
A) A buyer in the ordinary course of business who purchased the goods from a merchant
B) A subsequent buyer of consumer goods who purchased the goods from another customer
C) The trustee in bankruptcy of the debtor
D) Lien creditors of the debtor
Prior Perfected
A legal status indicating that a security interest or lien has been formally established and has priority over others in the same property.
Security Interest
A lawful assertion or encumbrance on property used as security, often aimed at guaranteeing loan repayment.
Trustee in Bankruptcy
An individual or entity appointed to oversee and administer the estate of a bankrupt entity to ensure fair distribution of assets to creditors.
- Elucidate the protections afforded to a consumer in the context of conventional business operations as per the Uniform Commercial Code.
Verified Answer
NG
noemi gonzalezMay 08, 2024
Final Answer :
A
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
- Elucidate the protections afforded to a consumer in the context of conventional business operations as per the Uniform Commercial Code.