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

Question

Quizplus · Accepted Answer

All of the choices listed can defeat a perfected security interest under certain conditions. A buyer in the ordinary course of business can defeat a perfected security interest if the buyer purchases goods from a seller who normally sells such goods, without knowledge of the security interest, and pays for the goods in the ordinary course of business. A buyer of consumer goods can also defeat a security interest if the buyer is not aware of the security interest, gives value for the goods, will continue to use the goods as consumer goods, and the secured party has not filed a financing statement. Lastly, a buyer who purchases chattel paper or an instrument in the ordinary course of business, and then takes possession can defeat a perfected security interest.

Which of the Following Parties Can Defeat a Perfected Security