In Recent Florida Case, BIOCOB Loses To Equipment Financer

LexisNexis (July 6, 2017, 2:45 PM EDT) -- A buyer in ordinary course of business takes free from a perfected security interest only if it was created by "the buyer's seller."  UCC 9-320(a).  This is the reverse of the shelter rule that one can't transfer better title than one has. 

Example.  Bank takes a security interest in all Dealer-1's appliances

and files a financing statement with the secretary of state.  Dealer-1

wrongfully sells its inventory in bulk to Dealer-2.  Consumers buy

appliances from Dealer-2.

If Dealer-1 defaults, can Bank replevy the appliances from the...
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