Asked by Ebony McFadden on Jun 04, 2024
Verified
A buyer in the ordinary course of business takes goods subject to any security interest created by the seller because otherwise the free flow of credit would be hindered.
Buyer
A person or organization that acquires goods or services from a seller in exchange for money.
Ordinary Course
Activities that are carried out in the normal and usual way of conducting business.
- Identify the differences between perfected and unperfected security interests along with their hierarchical order.
Verified Answer
CS
Cordell ShortJun 08, 2024
Final Answer :
False
Explanation :
A buyer in the ordinary course of business takes goods free of any security interest created by the seller, ensuring the smooth flow of commerce and protecting buyers from undisclosed security interests.
Learning Objectives
- Identify the differences between perfected and unperfected security interests along with their hierarchical order.