Cutco Lawn Products Manufacturing Company Sells 100 Riding Lawn Mowers

Multiple Choice

Cutco Lawn Products Manufacturing Company sells 100 riding lawn mowers to the Smith Hardware Company,a retailer in the same industry.Smith pays for the mowers with a $50,000 loan from the Bass Bank.The Bank takes a security interest in the mowers to secure payment of the loan,and perfects it by filing.Later,Smith sells one of the mowers to Carl,a consumer,who buys in good faith and in the ordinary course of Smith's business.However,Carl knows that the Bank has a security interest in the mowers.Smith defaults on its loan payments,and the Bank moves to repossess all the mowers.Can it repossess the mower sold to Carl?

A) Since the Bank attached its security interest,it may repossess the mower from Carl.
B) Since Carl bought the mower in good faith,the bank may not repossess his mower.
C) Since Carl knew about Bass's security interest,the bank may repossess his mower.
D) Since the mower is in Carl's possession now,the bank has no right over this third party.