With Regard to a Prior Perfected Security Interest in Goods

question 84

Multiple Choice

With regard to a prior perfected security interest in goods for which a financing statement has been filed,which of the following parties is most likely to have a superior interest in the same collateral?

• A)A buyer in the ordinary course of business who purchased the goods from a merchant
• B)A subsequent buyer of consumer goods who purchased the goods from another customer
• C)The trustee in bankruptcy of the debtor
• D)Lien creditors of the debtor

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Definitions:

Option Agreement

A contract granting a party the right, but not the obligation, to buy, sell, or engage in a specific transaction at agreed terms within a specified time.

Property

Property refers to legally protected claims to resources, such as land, personal possessions, intellectual property, or other assets that are owned or controlled by a person or entity.

Unilateral Contract

A contract formed when one party performs what has been requested by the other party; there is a promise followed by an act, but not an exchange of promises.

Lost Dog

A canine that has gone missing from its owner's home or care.