Alice Buys a Home Theater System from Blastaphonic Audio and Video,paying

question 45

Multiple Choice

Alice buys a home theater system from Blastaphonic Audio and Video,paying cash.Alice was aware that Fourth National Bank had a perfected security interest in all the inventory of Blastaphonic.Which of the following statements is true?

• A) The home theater system is not subject to a security interest once Alice purchases it.
• B) The home theater system remains subject to the security interest of Fourth National Bank because Alice had actual knowledge of the security interest.
• C) The home theater system is not subject to a security interest once Alice purchases it so long as the remaining inventory of Blastaphonic is adequate to secure the amount of the indebtedness.
• D) The home theater system remains subject to the security interest of Fourth National Bank,and this would be true even if Alice was not aware of Fourth National Bank's security interest.

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Definitions:

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