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John Bought a Television from Jake's Appliance Center for His

Question 6

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John bought a television from Jake's Appliance Center for his personal use.John could not pay cash for it,so he signed a note and gave Jake's a security interest in the television.Jake's did not file a financing statement.About 6 months later,John sold this television to a neighbor,Jane,who did not know about Jake's security interest in it.John stopped making payments on the note to Jake's,and now Jake's wants to repossess the television from Jane.Can Jake's repossess this television from Jane?


A) Yes; Jake's security interest survives this sale to Jane.
B) No; Jane is a buyer in the ordinary course of business,who takes the television free of any security interest.
C) No; Jane is a buyer of secondhand consumer goods,who takes the television free of any security interest.
D) No; Jake's did not perfect the security interest,so it is not valid against third parties like Jane.
E) No; Jake's security interest did not attach,so it is not valid against anyone,including Jane.

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