At her neighbor's garage sale, Constance buys a vanity dressing table from her neighbor, Carlos, for $160 . Constance purchased the vanity table for her own personal use, without any knowledge that Carlos had signed a security agreement giving All Purpose Furniture, Inc a security interest in the vanity table. All Purpose Furniture did not file a financing statement. Constance does not know that

Carlos is still paying off the purchase money security interest and owes All Purpose Furniture, Inc $400 . Under these circumstances:
a. Constance takes the vanity table subject to All Purpose's security interest because All Purpose's security interest automatically perfected. A perfected security interest takes priority.
b. Constance takes the vanity table free of All Purpose's security interest because she is a buyer of consumer goods
c. Constance takes the vanity table free of All Purpose's security interest because she is a buyer in the ordinary course of business.
d. Constance must pay All Purpose $400 or the table must be resold, and she and All Purpose will proportionately share the proceeds from the sale of the table.


b

Business

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