Which of the Following Parties Can Defeat a Perfected Security

question 3

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 these are correct.

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Definitions:

Restrictions

Limitations or conditions placed on actions, activities, or agreements to regulate or control their scope and enforceability.

Ratifies

To formally approve or confirm an agreement, treaty, or law, making it officially valid.

Minor

An individual under the legal age of adulthood, often considered as under 18 years in many jurisdictions.

All-Season Passes

Tickets or passes that grant holders access to a facility, service, or event across all seasons of a year, often seen in theme parks or ski resorts.