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 a. Constance must pay All Purpose $400 or the table must be resold, and she and All Purpose will proportionately share the proceeds from the sale of the table. b. Constance takes the vanity table subject to All Purpose's security interest because All Purpose's security interest automatically perfected. A perfected security interest takes priority. c. Constance takes the vanity table free of All Purpose's security interest because she is a buyer in the ordinary course of business. d. Constance takes the vanity table free of All Purpose's security interest because she is a buyer of consumer goods.

Goods that are bought for personal use are considered to be consumer goods. In such a case, all security interests in the good stemming from the previous owner will be voided as stipulated by the law relating to the resale of consumer goods.

Constance will therefore not have to pay off any of All Purpose's security interest and Carlos would have to pay it off.