Buyers in the ordinary course of business who purchases goods from a merchant take the goods free from any perfected or unperfected security interest in the merchant's inventory,even if the buyer knows of the existence of the security interest.

Question

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This is known as the "buyer in the ordinary course of business" exception to security interests in inventory under the Uniform Commercial Code (UCC). As long as the buyer purchased the goods in the normal course of the merchant's business, they take the goods free and clear of any security interest, regardless of whether or not they were aware of the security interest.

Buyers in the Ordinary Course of Business Who Purchases Goods