Which of the Following Is True If a Buyer of a Consumer

question 38

Multiple Choice

Which of the following is true if a buyer of a consumer good subject to purchase-money security interest later sells the good?

• A) The security interest immediately terminates.
• B) The security interest passes to the new buyer.
• C) Regardless of whether the buyer is aware of the security interest, so long as the buyer purchases the good for his or her personal use, the security interest terminates if the sale to the new buyer is made before the original secured party files a financial statement.
• D) As long as the buyer is not aware of the security interest, purchases the good for his or her personal use, and purchases the good before the secured party files a financing statement, the new buyer obtains the good free of the security interest.
• E) As long as the buyer is not aware of the security interest, purchases the good for personal use or resale, and purchases good before the secured party files a financial statement, the buyer obtains the good free of the security interest.

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Definitions:

Vagina

The muscular tube leading from the external genitals to the cervix of the uterus in females.

Device

A device is an object or machine designed to perform a specific task or function, often used to refer to technological items or medical apparatus.

Gonorrhea

A sexually transmitted bacterial infection caused by Neisseria gonorrhoeae, affecting mucous membranes, particularly in the genital tract.

Urination

The process of excreting urine from the urinary bladder through the urethra to the outside of the body.