First Bank loaned $100,000 to Marlin's Store to purchase computers for its inventory. Marlin signed a financing agreement, which First Bank duly filed in the appropriate public office. Caroline came into Marlin's Store and purchased a computer that was
subject to the security interest held by First Bank. Assuming that Caroline is a buyer in the ordinary course of business, whose interest in the computer has priority?
Caroline is a buyer in the ordinary course of business from a merchant. Under the Code, even though First Bank has a perfected security interest in the goods, Caroline takes the computer free of that interest. This is true regardless of whether she had knowledge of the security interest of First Bank.
You might also like to view...
Armac Ltd. is a sluice-box manufacturer based in China. A sluice-box is used for gold prospecting
Armac is interested in selling a few of its machines to an American mining company, but it wants 95 percent of the machines' price in gold and the rest in ores recovered by using the machines. This is an example of a ________. A) buyback arrangement B) functional discount C) barter deal D) compensation deal E) sealed bid
When there is a net loss, the Income Summary account would have a credit balance.
Answer the following statement true (T) or false (F)
The gross profit method of inventory valuation is NOT valid when
a. there is substantial increase in the quantity of inventory during the year. b. there is substantial increase in the cost of inventory during the year. c. the gross margin percentage changes significantly during the year. d. all ending inventory is destroyed by fire before it can be counted.
Retailers employ about 10% of the American workforce
Indicate whether the statement is true or false