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

Question

Connor Williamson

Business

5 October, 14:58

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

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Alfred Medina · Answer 1

Answer and Explanation:

Constance keeps the table independently of the financial interest of All-Purpose, as she is a consumer products customer.

In this type of situation, Constance purchases the dining table from a sale, without knowing that Carlos agreed for an agreement and mortgage the table for that.

In this situation, Constance is not liable for Carlos's loan.