Sandy Purchases a Piece of Equipment to Use in Her

Multiple Choice

Sandy purchases a piece of equipment to use in her business.The seller of the equipment extended credit to Sandy to enable her to purchase the equipment.Sandy signs a security agreement,but the seller of the equipment does not file a financing statement anywhere.Sandy defaults on the loan and the seller of the equipment wants to get possession of the equipment.Can the seller repossess the equipment?

A) No,because the equipment is not consumer goods.
B) No,because the seller did not file a financing statement.
C) Yes,because there is a valid security agreement.
D) Yes,because there is automatic perfection.