Which of the following parties can defeat a perfected security interest?

Question

Quizplus · Accepted Answer

All of the options listed (A, B, and C) can defeat a perfected security interest in certain circumstances. A buyer in ordinary course of business can take free of a security interest if they purchase the goods in the ordinary course of the seller's business, without knowledge of the security interest, and before the security interest is perfected. A buyer of consumer goods can take free of a security interest if they purchase the goods without knowledge of the security interest, for value, for their own personal use, and before the security interest is perfected. Finally, a buyer who purchases chattel paper or an instrument in the ordinary course of business and takes possession can take free of a security interest in those documents.

Which of the Following Parties Can Defeat a Perfected Security