Which of the Following Parties Can Defeat a Perfected Security

question 31

Multiple Choice

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

• A)A "buyer in ordinary course of business."
• B)A buyer of consumer goods 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.
• C)A buyer who purchases chattel paper or an instrument in the ordinary course of business, and then takes possession.
• D)All of the above are correct.

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Definitions:

Optimal Quantity

The quantity that maximizes a firm or individual's net benefit, often determined through cost-benefit analysis.

Marginal Cost

The rise in expense associated with the production of an extra unit of a product or service.

Negative Externalities

The cost that affects a party who did not choose to incur that cost, often associated with production or consumption of goods and services, such as pollution.

Underallocated

Refers to a situation where resources are not enough or not effectively distributed for the production of goods and services, leading to inefficiencies.