C is corrent. Hamilton took a purchase money security interest in the TV set which would be considered consumer goods in Fogel’s possession. Consequently, Hamilton’s security interest was perfected automatically upon attachment. Therefore, Hamilton can defeat Reliable because Hamilton’s security interest was perfected prior to the time Reliable perfected its security interest by filing. Hamilton can also defeat Harp because Harp’s judgment was subsequent to Hamilton’s perfection. Normally Mobray, as a good-faith purchaser for personal use, would defeat a prior perfected secured party who gained his/her perfection through automatic perfection by attachment. However, Hamilton engaged in a second method of perfection (filing a financing statement) prior to the sale of the TV set to Mobray, allowing Hamilton to defeat the good-faith purchaser for personal use. A is incorrect. Hamilton took a purchase money security interest in the TV set which would be considered consumer goods in Fogel’s possession. Consequently, Hamilton’s security interest was perfected automatically upon attachment. Therefore, Hamilton can defeat Reliable because Hamilton’s security interest was perfected prior to the time Reliable perfected its security interest by filing. B is incorrect. Hamilton took a purchase money security interest in the TV set which would be considered consumer goods in Fogel’s possession. Consequently, Hamilton’s security interest was perfected automatically upon attachment. Normally Mobray, as a good-faith purchaser for personal use, would defeat a prior perfected secured party who gained his/her perfection through automatic perfection by attachment. However, Hamilton engaged in a second method of perfection (filing a financing statement) prior to the sale of the TV set to Mobray, allowing Hamilton to defeat the good-faith purchaser for personal use. D is incorrect. Hamilton took a purchase money security interest in the TV set which would be considered consumer goods in Fogel’s possession. Consequently, Hamilton’s security interest was perfected automatically upon attachment. Therefore, Hamilton can defeat Reliable because Hamilton’s security interest was perfected prior to the time Reliable perfected its security interest by filing. Hamilton can also defeat Harp because Harp’s judgment was subsequent to Hamilton’s perfection.
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