George Bought a Washing Machine from Sears, Which Financed the Purchase

Multiple Choice

George bought a washing machine from Sears, which financed the purchase and which filed a financing statement. George couldn't make the payments, so he sold the machine to his neighbor, Nancy, for her home use.

A) Sears must pursue George for payment, Nancy takes free of its interest.
B) Sears can repossess the machine from Nancy.
C) Nancy can keep the machine, but only if she paid a reasonable amount for it.
D) Nancy can keep the machine, but she must pay Sears what is owing on it.
E) two of the above