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

question 42

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)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.
• B)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.
• 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)The security interest passes to the new buyer.
• E)The security interest immediately terminates.

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Definitions:

Adjudication

The process of resolving a dispute by presenting evidence and arguments before a neutral third party decision maker in a court or an administrative law proceeding.

Agency Violation

Occurs when an agent acts outside the scope of authority granted by the principal, leading to potential legal repercussions.

Freedom of Information Act

A law that grants the public access to records from any federal agency, promoting transparency and accountability in government.

Federal Bureau

A generic term for a government entity that conducts specific government functions at a national level, often used in the context of law enforcement or investigation.