Priorities

Question 1

General rule of priority

Answer 1

First in time, first in right

Question 2

Order of priority

Answer 2

Perfected PMSI, lien creditor (if attached first), perfected security interest, unperfected security interest

Question 3

Buyer vs. secured parties

Answer 3

Generally security interest survives a sale, unless: buyer in ordinary course of business, buyer of consumer goods, buyer of an instrument.

Question 4

Buyer in ordinary course of business

Answer 4

buys goods in good faith, without knowledge that sale violates rights of another, and from a person in business of selling goods of that kind

Question 5

Garage sale exception

Answer 5

Buyer of consumer goods in a consumer to consumer sale takes free of security interest (unless knowledge of security interest)