If a Buyer Purchases Chattel Paper in the Ordinary Course

question 58

True/False

If a buyer purchases chattel paper in the ordinary course of business and is unaware of any applicable security interest, the buyer can obtain the good free of any security interest.

---

Definitions:

Insurance

A financial product that transfers the risk of financial loss from an individual or business to an insurance company, in exchange for premium payments.

Lloyd's of London

A British insurance and reinsurance market where members join together as syndicates to insure and spread risks.

Asbestos Claims

Legal claims filed by individuals exposed to asbestos seeking compensation for health issues developed as a result of that exposure.

Diversification

Diversification is an investment strategy that involves spreading investments among various financial assets to reduce exposure to risk.