Which of the following statements about a buyer in ordinary course of business (BIOC)is true?

Question

Quizplus · Accepted Answer

A buyer in ordinary course of business (BIOC) takes the goods free of a security interest even though the security interest is perfected. This is because the law wants to protect the innocent buyer who purchases goods in the ordinary course of business without knowledge of any security interests attached to the goods. Therefore, the security interest does not attach to the goods in the hands of a BIOC, unless the security interest is a purchase money security interest (PMSI) in consumer goods.

Which of the Following Statements About a Buyer in Ordinary