Under Article 9 of the Uniform Commercial Code,which of the following is true about a situation where the buyer purchases goods that were subject to a security interest in the inventory of the seller?
A) A buyer in the ordinary course of business from a merchant seller takes the goods free of any security interest in the merchant seller's inventory.
B) The buyer can never take title to goods if, at the time of sale, they are subject to a security interest granted by the seller.
C) Buyers cannot return the goods if they are nonconforming.
D) The goods must be delivered to a common carrier in order for title to pass.
E) The buyer cannot sell those goods to any other party until all earlier security interests have been terminated.
Correct Answer:
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