A buyer who buys goods from a debtor in the ordinary course of business is subject to a creditor's security interest but only if the interest was perfected and the buyer had notice of it.

Question

Quizplus · Accepted Answer

A buyer in the ordinary course of business generally takes goods free of a security interest created by the seller, even if the security interest is perfected and the buyer is aware of it, according to the Uniform Commercial Code (UCC).

A Buyer Who Buys Goods from a Debtor in the Ordinary