Asked by Sherwin Sanpedro on Jul 26, 2024
Verified
According to the Uniform Commercial Code,what happens if a buyer of a consumer good subject to purchase-money security interest later sells the good?
A) The security interest immediately terminates.
B) The security interest passes to the new buyer.
C) Regardless of whether the new buyer is aware of the security interest,the security interest terminates if the sale to the buyer is made before the original secured party files a financial statement.
D) As long as the new buyer is not aware of the security interest,purchases the good for his or her personal use,and purchases the good before the secured party files a financial statement,the buyer obtains the good free of the security interest.
E) As long as the new buyer is not aware of the security interest,purchases the good for resale,and purchases the good before the secured party files a financial statement,the buyer obtains the good free of the security interest.
Purchase-Money Security Interest
A legal claim or lien on property that secures payment of the price or an obligation incurred for the property's purchase.
Consumer Good
A good used or bought for use primarily for personal, family, or household purposes.
Financial Statement
A formal record of the financial activities and position of a business, individual, or other entity, typically detailing income, assets, liabilities, and equity at a specific point in time.
- Understand the concepts of purchase-money security interest and its implications for buyers and sellers.
Verified Answer
Learning Objectives
- Understand the concepts of purchase-money security interest and its implications for buyers and sellers.
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