A buyer in the ordinary course of business has priority over any security interest created by the seller.

Question

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According to the Uniform Commercial Code (UCC), a buyer in the ordinary course of business takes priority over any security interest created by the seller, unless the buyer had knowledge of the security interest at the time of purchase. This rule encourages the free flow of goods in commerce and protects the interests of innocent buyers who had no reason to know about existing security interests.

A Buyer in the Ordinary Course of Business Has Priority