Rally Co. has purchased some inventory from Kantar Corporation to sell to customers who will use the inventory primarily for consumer use. Which of the following is NOT correct?
a. If Kantar sells the inventory to Rally on credit and takes out a security interest using the inventory as collateral, this is a purchase money security interest.
b. If Kantar sells the inventory to Rally on credit and takes out a security interest using the inventory as collateral, this is a purchase money security interest in consumer goods.
c. If Kantar sells the inventory to Rally but Rally pays for it by getting a loan from a bank who takes out a security interest using the inventory as collateral, this is a purchase money security interest.
d. If a customer purchases some inventory on credit from Rally for home use and signs a written security agreement presented by Rally that list the inventory as collateral for the credit, this is a purchase money security interest in consumer goods.
Answer: B
Tax
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