Under the Uniform Commercial Code, a buyer in the ordinary course of business:
A) takes goods free of any security interest in the goods that his or her seller may have given a third party.
B) is a person who transacts only with nonmerchants.
C) does not act in good faith.
D) is one who buys goods from a merchant, knowing that the sale violates the ownership rights of a third party.

Question

Quizplus · Accepted Answer

A "buyer in the ordinary course of business" is one who, in good faith, buys goods from a person dealing in goods of that type without knowing that the sale violates the ownership rights of any third party. Under the Uniform Commercial Code, buyers in the ordinary course take goods free of any security interest in the goods that their seller may have given a third party.

Under the Uniform Commercial Code, a Buyer in the Ordinary