A buyer in the ordinary course of business can take goods free of any security interest created by the seller of the goods unless the security interest is perfected, under the UCC.

Question

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Under the Uniform Commercial Code (UCC), a buyer in the ordinary course of business takes goods free of a security interest created by the seller, even if the security interest is perfected, unless the buyer knows the sale violates the rights of another party in the goods. This rule protects ordinary buyers from undisclosed security interests that the seller may have on the goods.

A Buyer in the Ordinary Course of Business Can Take