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A Secondhand Buyer of Consumer Goods That Were Subject to a Purchase

Question 50

Multiple Choice

A secondhand buyer of consumer goods that were subject to a purchase money security interest while in the hands of the original buyer takes those goods free of the purchase money security interest:


A) under no circumstances.
B) so long as the original creditor perfected by automatic perfection.
C) so long as the original creditor perfected by filing a financing statement.
D) if the secondhand buyer does not have actual or constructive knowledge of the security interest, gives value for the goods, and buys the goods for personal, family, or household purposes.
E) in all circumstances.

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