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A Buyer in the Ordinary Course of Business Who Purchases

Question 42

Multiple Choice

A buyer in the ordinary course of business who purchases inventory goods from a debtor who had placed a security interest on those goods in favor of a creditor:


A) is not subject to the security interest.
B) is not subject to the security interest unless it was perfected.
C) is not subject to the security interest unless the buyer was aware of it.
D) is subject to the security interest.

Correct Answer:

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