When the Security Interest Is Perfected and the Buyer Knows

Multiple Choice

When the security interest is perfected and the buyer knows of its existence, a buyer in the ordinary course of business:

A) is subject to the security interest created by his seller.
B) takes the purchase free from a security interest created by his seller.
C) takes the purchase free from a security interest only if the person is buying farm products from a person engaged in a farming operation.
D) is not protected if the dealership is in default of its loan agreement.