A Buyer in the Ordinary Course of Business Takes Collateral

question 44

True/False

A buyer in the ordinary course of business takes collateral (other than farm products) free of any security interest created by the buyer's seller, even if the security interest is perfected and the buyer knows of its existence.

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Definitions:

Sherman Antitrust Act

A landmark federal statute in the United States passed in 1890 that outlaws monopolistic business practices, aiming to preserve fair competition in the marketplace.

FTC

The Federal Trade Commission, a U.S. government agency aimed at protecting consumers and ensuring a strong competitive market by enforcing antitrust and consumer protection laws.

Celler-Kefauver

A United States antitrust law passed in 1950, amending the Clayton Act to prevent corporate acquisitions that could reduce competition.

European Commission

An institution of the European Union responsible for proposing legislation, implementing decisions, upholding the EU treaties, and managing the day-to-day business of the EU.