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Source Judicial Notice Complete Evidence List Showing the closest available flashcard practice.

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0 tracked cards Supplemental - Not MEE July 2026

Consumer A buys a home theater system for personal use on secured credit. The seller's PMSI is automatically perfected and no financing statement is filed. Consumer A later sells the system to Consumer B at a garage sale. Consumer B buys for personal use, pays value, and has no knowledge of the security interest.
What is Consumer B's best priority argument?

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The buyer takes free only if the secured party failed to attach. The buyer takes free only if the price exceeds the original purchase price. The buyer may take free if the buyer buys consumer goods for value, for personal use, without knowledge of the security interest, before a financing statement covering the goods is filed. The buyer takes free only if the seller is a merchant selling from inventory.

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