If a buyer purchases chattel paper or an instrument in the ordinary course of business and he or she is unaware of any security interest in the good,the buyer obtains the good ________.
A)subject to an unperfected security interest
B)subject to a perfected security interest by possession
C)subject to an automatically-perfected security interest
D)subject to an automatically-perfected security interest and a perfected security interest by possession
E)free of any security interest

Question

Quizplus · Accepted Answer

If a buyer purchases either chattel paper (a writing that indicates both a monetary obligation and a security interest in specific goods)or an instrument (a writing that demonstrates a right to payment of money in the ordinary course of business),the buyer can obtain the good free of any security interest.Typically the buyer must be unaware of any security interest in the good.

If a Buyer Purchases Chattel Paper or an Instrument in the Ordinary